CHAT's AI‑Focused ETF Delivers 122% One‑Year Return, Doubling IYW's Gain Despite Higher Costs

TL;DR: CHAT’s AI‑focused ETF returned 122.6% over the past year, more than double IYW’s gain, despite higher fees and a richer dividend.

On May 11, 2026, Roundhill Investments’ Generative AI & Technology ETF (CHAT) posted a total return of 122.61%, outpacing the iShares U.S. Technology ETF (IYW) which rose 51.90% in the same period.

CHAT’s one‑year gain more than doubled IYW’s, even though its expense ratio of 0.75% is nearly twice IYW’s 0.38%.

The fund also distributed a trailing‑12‑month dividend yield of 2.00%, compared with IYW’s 0.10%.

IYW tracks a broad index of 139 U.S. technology stocks, giving it $24.0 billion in assets under management and a beta of 1.33 relative to the S&P 500.

CHAT, launched in 2023, holds 52 positions concentrated in generative AI, with $1.6 billion AUM and a higher beta of 1.75, reflecting greater volatility.

Over the trailing 12 months, the S&P 500 returned about 18%, meaning CHAT generated roughly 105 percentage points of excess return while IYW added about 34 points.

CHAT’s active management screens for ESG compliance and weights top holdings such as Nvidia (6.79%), Alphabet (6.76%) and AMD (5.79%).

IYW’s passive approach weights Nvidia at 16.21%, Apple at 13.36% and Alphabet at 7.19%, spreading risk across a wider tech base.

Investors choosing CHAT gain higher income and exposure to pure AI plays, but accept higher costs, larger drawdowns (31.30% vs 26.50% over two years) and steeper price swings.

CHAT’s maximum drawdown over the past two years reached 31.30%, versus 26.50% for IYW, showing the thematic fund’s steeper declines during market stress.

Dividend frequency also differs: CHAT pays its $1.68 annual distribution once per year, while IYW disperses $0.27 per share quarterly.

IYW offers lower volatility, cheaper access and quarterly dividends, suiting those who want tech exposure with less risk.

Watch for upcoming AI product cycles and any shifts in thematic fund flows that could narrow or widen the performance gap between CHAT and IYW.