Vanguard Information Technology ETF (NYSEMKT:VGT) Provides broad, low-cost sector exposure, while RoundHill Investments – Generative AI & Technology ETF (NYSEMKT:CHAT) Artificial Intelligence provides an actively managed, focused play on the boom.
Technology investors today face a stark choice between broad sector indexing and focused thematic concentration. While the Vanguard Fund tracks hundreds of established tech firms across the industry, the Roundhill Fund focuses specifically on the emerging generic artificial intelligence landscape. This matchup compares a passive indexing veteran to an active, high-conviction newcomer to see how their risks and rewards differ.
Snapshot (cost and size)
|
metric |
to talk |
VGT |
|---|---|---|
|
Issuer |
roundhill investments |
vanguard |
|
expense ratio |
0.75% |
0.09% |
|
1-Year Returns (by June 3, 2026) |
144.00% |
60.20% |
|
dividend yield |
1.70% |
2.00% |
|
beta |
1.83 |
1.34 |
|
Om |
$2.2 billion |
$144.2 billion |
Beta measures price volatility relative to the S&P 500; Beta is calculated from five-year monthly returns. 1-year returns represent the total returns over the last 12 months. Dividend yield is the trailing 12-month distribution yield.
The Vanguard fund is significantly more affordable with a 0.09% expense ratio, while the Roundhill fund charges 0.75% for its active management strategy. Income investors may want to look at the trailing 12-month dividend yield of 2.00% from the Vanguard ETF as slightly higher compared to the 1.70% payout from the Roundhill fund.
Performance and risk comparison
|
metric |
to talk |
VGT |
|---|---|---|
|
Maximum decline (3 years) |
(31.30%) |
(27.20%) |
|
$1,000 growth in 3 years (total return) |
$3,760 |
$2,378 |
what’s inside
The Vanguard Information Technology ETF holds 310 stocks and is 98% focused on the technology sector. Its largest positions include NVIDIA (NASDAQ:NVDA) At 18.60%, Apple (NASDAQ:AAPL) at 14.82%, and Microsoft (NASDAQ:MSFT) At 10.02%. This passively managed fund was launched in 2004, has a trailing-12-month dividend of $2.41 per share, and tracks companies serving the electronics and computer industries.
Roundhill Investments – Generative AI & Technology ETF is an actively managed fund that was launched in 2023 with 52 holdings. Its main weighting is 77% on technology and 17% on communication services. Top holdings include micron (NASDAQ:MU) At 6.28%, SK Hynix (KRX:000660) at 5.86%, and NVIDIA (NASDAQ:NVDA) At 5.81%. The fund paid $1.68 per share in the last 12 months and includes an environmental, social and governance (ESG) screen.
For more guidance on ETF investing, check out the complete guide this link.
