Despite shedding a third of its value since June, one AI-focused fund has still managed to outpace the broader market by a wide margin since its 2023 debut.
The Roundhill Generative AI and Technology ETF (CHAT) has returned 160% since its May 2023 inception, more than double the 75% gain posted by the S&P 500 over the same stretch.
That outperformance is drawing renewed attention now that CHAT has pulled back sharply, sitting 35% below its all-time high as of the November 6 market close.
For long-horizon investors, the combination of a strong performance track record and a steep drawdown is precisely the kind of setup that can define a portfolio’s future returns.
The fund holds 36 stocks, giving investors concentrated exposure to companies that analysts and fund managers consider the most important players in artificial intelligence today.
Among its holdings are chip designers Advanced Micro Devices and Micron Technology, cybersecurity firm CrowdStrike, and Elon Musk’s Space Exploration Technologies, reflecting the broad reach of AI infrastructure.
The portfolio’s construction signals a bet not just on software and data, but on the physical and computational layers that make large-scale AI possible.
Launched in May 2023, CHAT is still a relatively young fund, and its short history means investors have limited data to judge how it performs across full market cycles.
Still, proponents argue that the fund’s underlying thesis extends well beyond near-term sentiment, with AI expected to drive advances in robotics and autonomous vehicles over the coming decade.
The recent crash could represent a valuation reset in a sector that ran hard through mid-year, potentially offering a more sustainable entry price for investors willing to hold through continued volatility.
Whether the drawdown deepens or stabilizes, the fund’s longer-term return profile suggests that patient investors with high risk tolerance may find CHAT worth considering as part of a diversified strategy.
The 160% gain since inception, even after the current slump, underscores just how much ground AI stocks have covered in a short period, and how much further the technology’s advocates believe it can go.
