Today marks the beginning of trading for an interesting new ETF, the Tidal Trust II Roundhill Generative AI & Technology ETF (NYSEARCA:CHAT). The strong level of interest has sent CHAT’s share prices up and the momentum only looks to be rising in the coming hours. This makes sense as investors are now looking to invest in the ever-growing trend of Generative AI.
ETFs offer investors a convenient method of investing in a particular sector after offering diversification, often at a lower cost than the expense of owning numerous individual stocks. CHAT ETF’s portfolio is quite weighted to the top five holdings, which according to order of weighting are Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Baidu (NASDAQ:BIDU) and iFLYTEK. One should bear in mind the associated weights before investing in this fund as it may compromise diversification.
In addition to this, the cost associated with owning such an ETF is 0.75%, which is slightly pricier than more conventional index funds. However, investors may be willing to pay such fees as this ETF is suited to investors who are keenly interested in the aggregate of Generative AI and technology stocks.
Apart from this article, readers should also comprehend the personalities and companies that come with the CHAT ETF. Most notably, the fund was created by Roundhill Investments, a company that specializes in creating ETFs that offer long-term growth potential from technologies such as AI and VR. With CHAT, investors can enjoy broad-based exposure to the AI trend while allowing individuals sufficient time to research individual stocks.
For those who would like to capitalize in the opportunities offered by Generative AI, CHAT ETF is certainly an attractive option. No doubt, investors should research extensively the ETFs structure, fees, and individual stocks before investing any money. Investors should make sure that CHAT is aligned with their long-term goals in order to capitalise on the opportunities this ETF provides.
