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CHAT vs IGPT
Which ETF would AI Choose? Roundhill Generative AI & Technology ETF (CHAT) vs. Invesco AI and Next Gen Software ETF (IGPT)
Key Takeaways
- Different strategies, same theme: CHAT is an actively managed fund targeting generative AI and related technologies, while IGPT passively tracks the STOXX World AC NexGen Software Development Index.
- Cost and breadth differ: IGPT offers a lower expense ratio (about 0.56%) and roughly 115 holdings, versus CHAT's 0.75% fee and roughly 40–45 holdings.
- Exposure tilt: CHAT skews toward mega-cap AI platform and software leaders, while IGPT carries a heavier weighting in memory and semiconductor hardware names.
- Risk profile: IGPT's concentration in cyclical memory/storage producers can amplify volatility, whereas CHAT leans toward diversified, cash-flow-rich AI platforms.
- Tickeron AI Verdict: On structural strength, trend consistency, and risk exposure, CHAT is the favored ticker of the two in this comparison.
Introduction
Artificial intelligence (AI) has become one of the defining investment themes of this market cycle, and exchange-traded funds (ETFs) offer a convenient way to access it. CHAT and IGPT are frequently considered side by side because both promise exposure to AI innovation, yet they pursue that goal through very different structures. One is an actively managed generative-AI vehicle; the other is a passive index fund spanning AI, software, and next-generation computing. Understanding their structural differences, sector exposure, and relative positioning matters for any investor weighing these two funds in the current environment.
Roundhill Generative AI & Technology ETF (CHAT) Overview
The Roundhill Generative AI & Technology ETF (CHAT) is an actively managed ETF that seeks to capture companies involved in generative AI and related technologies. It typically holds between 25 and 50 securities, with recent reports placing the count around 40–45 names. The fund scores companies by their revenue exposure and research-and-development commitment to generative AI, then weights the portfolio accordingly. Its expense ratio is 0.75%.
Top holdings include NVDA, GOOGL, MSFT, AMD, ORCL, AVGO, META, and ARM, alongside non-U.S. names such as SK Hynix and SoftBank Group. By sector, information technology dominates (roughly 70–77% of assets), followed by communication services (roughly 17–22%) and a smaller consumer discretionary sleeve. CHAT invests globally, including limited emerging-market exposure, and its active mandate allows portfolio managers to adapt holdings as the AI landscape evolves.
Invesco AI and Next Gen Software ETF (IGPT) Overview
The Invesco AI and Next Gen Software ETF (IGPT) is a passive fund that seeks to track the STOXX World AC NexGen Software Development Index, which includes companies with significant revenue exposure to technologies that contribute to future software and computing development. The fund generally holds roughly 100–116 securities and carries a 0.56% expense ratio. It is structured as non-diversified, meaning a larger share of assets can be concentrated in fewer names.
IGPT's top holdings lean heavily into semiconductors and memory: AMD, META, GOOGL, NVDA, and MU, plus INTC, MRVL, SNDK, WDC, and STX, with non-U.S. names such as SK Hynix and MediaTek. Information technology is the dominant sector allocation, followed by communication services. The emphasis on memory and storage producers gives IGPT a more cyclical, hardware-driven profile than CHAT.
Industry and Thematic Backdrop
Both funds sit at the center of a powerful secular trend: the buildout of AI infrastructure, large language models, and next-generation software. Capital spending by hyperscale cloud providers has been a key catalyst, fueling demand for accelerators, memory, networking, and data-center capacity. At the same time, the memory and storage segments, which feature prominently in IGPT, remain sensitive to pricing cycles, inventory swings, and supply dynamics.
Regulatory scrutiny of AI, evolving export controls on advanced chips, and rising competition among AI model developers are additional factors shaping the sector. Interest-rate expectations also matter, because richly valued technology and growth-oriented equities tend to be more sensitive to shifts in long-term discount rates. These macro forces affect both ETFs, though CHAT's platform-heavy composition and IGPT's hardware-heavy composition can respond differently to the same news flow.
Performance and Positioning Comparison
In recent weeks and months, both ETFs have participated in the broader AI-driven rally in technology equities, but their relative positioning has differed. CHAT's concentration in mega-cap platform and software leaders has given it exposure to companies with diversified, recurring revenue streams and strong AI monetization potential. IGPT, by contrast, has been more directly levered to the memory and storage upcycle, which can produce sharp bursts of outperformance but also deeper drawdowns when cyclical conditions soften.
Because IGPT holds substantial weightings in memory producers and storage-hardware names, its volatility profile tends to be elevated during semiconductor supply-demand shifts. CHAT's active management and tilt toward larger, multi-line AI companies have generally offered a more balanced risk profile, though at a higher cost. Investors evaluating fund performance should weigh these structural differences rather than short-term price movements alone.
AI Screener
Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market using technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs with customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener is designed to surface trade ideas, trending stocks, and breakout candidates more efficiently than manual screening, making it a practical companion for anyone comparing funds like CHAT and IGPT. Explore the AI Screener to refine your own sector and fund analysis.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor CHAT in this matchup. While IGPT holds advantages in cost efficiency and breadth, its heavier exposure to cyclical memory and storage names introduces greater earnings volatility and sensitivity to supply-demand shifts. CHAT, despite its higher expense ratio, combines active management with a more diversified tilt toward mega-cap AI platforms and software leaders that enjoy recurring revenue and broad AI monetization potential. On structural strength, trend consistency, and risk-adjusted exposure, the evidence points to CHAT as the more resilient choice in the current environment, though the assessment is probabilistic rather than a guarantee of future results.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CHAT is a Hold and IGPT is a Hold.
CHAT in downward trend: 10-day moving average broke below 50-day moving average on October 16, 2026
The 10-day moving average for CHAT crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 8 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 88%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 36 of 46 cases where CHAT's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 78%.
The Momentum Indicator moved below the 0 level on October 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CHAT as a result. In 38 of 46 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 83%.
The Moving Average Convergence Divergence Histogram (MACD) for CHAT turned negative on October 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 36 similar instances when the indicator turned negative. In 28 of the 36 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
CHAT moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHAT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where CHAT's RSI Indicator exited the oversold zone, 18 of 18 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
Following a +6.21% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHAT advanced for three days, in 267 of 291 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
CHAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 247 of 259 cases where CHAT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
IGPT's Indicator enters downward trend
The Aroon Indicator for IGPT entered a downward trend on October 30, 2026. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 147 similar instances where the Aroon Indicator formed such a pattern. In 133 of the 147 cases the stock moved lower. This puts the odds of a downward move at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IGPT as a result. In 62 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for IGPT turned negative on October 08, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 58 similar instances when the indicator turned negative. In 48 of the 58 cases the stock turned lower in the days that followed. This puts the odds of success at 83%.
IGPT moved below its 50-day moving average on October 14, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IGPT crossed bearishly below the 50-day moving average on October 20, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 69%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IGPT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for IGPT's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 49 of 53 cases where IGPT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
Following a +4.96% 3-day Advance, the price is estimated to grow further. Considering data from situations where IGPT advanced for three days, in 320 of 357 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
IGPT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
| CHAT | IGPT | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 90% | 3 days ago 90% |
| Stochastic ODDS (%) | 3 days ago 78% | 3 days ago 90% |
| Momentum ODDS (%) | 3 days ago 83% | 3 days ago 77% |
| MACD ODDS (%) | 3 days ago 78% | 3 days ago 83% |
| TrendWeek ODDS (%) | 3 days ago 79% | 3 days ago 83% |
| TrendMonth ODDS (%) | 3 days ago 89% | 3 days ago 85% |
| Advances ODDS (%) | 5 days ago 90% | 5 days ago 90% |
| Declines ODDS (%) | 3 days ago 77% | 3 days ago 83% |
| BollingerBands ODDS (%) | 3 days ago 90% | 3 days ago 90% |
| Aroon ODDS (%) | 3 days ago 90% | 3 days ago 90% |
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CHAT and
Correlation & Price change
A.I.dvisor indicates that over the last year, CHAT has been closely correlated with COHR. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if CHAT jumps, then COHR could also see price increases.
| Ticker / NAME | Correlation To CHAT | 1D Price Change % | ||
|---|---|---|---|---|
| CHAT | 100% | -7.13% | ||
| COHR - CHAT | 72% Closely correlated | -11.34% | ||
| VRT - CHAT | 69% Closely correlated | -5.46% | ||
| ANET - CHAT | 65% Loosely correlated | -8.34% | ||
| ORCL - CHAT | 56% Loosely correlated | -6.37% | ||
| HPE - CHAT | 53% Loosely correlated | -6.42% | ||
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IGPT and
Correlation & Price change
A.I.dvisor indicates that over the last year, IGPT has been loosely correlated with P. These tickers have moved in lockstep 51% of the time. This A.I.-generated data suggests there is some statistical probability that if IGPT jumps, then P could also see price increases.
| Ticker / NAME | Correlation To IGPT | 1D Price Change % | ||
|---|---|---|---|---|
| IGPT | 100% | -7.52% | ||
| P - IGPT | 51% Loosely correlated | -7.45% | ||
| HPE - IGPT | 50% Loosely correlated | -6.42% | ||
| AME - IGPT | 50% Loosely correlated | -4.23% | ||
| EMR - IGPT | 49% Loosely correlated | -3.40% | ||
| DELL - IGPT | 48% Loosely correlated | -10.77% | ||
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