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CHAT vs SKYY
Which ETF would AI Choose? Roundhill Generative AI & Technology ETF (CHAT) vs. First Trust Cloud Computing ETF (SKYY)
Key Takeaways
- Roundhill Generative AI & Technology ETF (CHAT) is an actively managed thematic fund targeting generative artificial intelligence (AI) and related technologies with global exposure, while First Trust Cloud Computing ETF (SKYY) is a passive index-tracking fund focused exclusively on cloud computing companies, primarily in the United States.
- CHAT holds approximately 43 to 50 securities with an expense ratio of 0.75 percent, emphasizing high-conviction positions in semiconductors and software leaders such as NVIDIA Corp. (NVDA) and Alphabet Inc. (GOOGL).
- SKYY tracks the ISE CTA Cloud Computing Index with around 66 holdings, a lower expense ratio of 0.60 percent, and broader diversification across cloud infrastructure, software, and services providers including Everpure Inc. (P) and Nutanix Inc. (NTNX).
- CHAT offers greater geographic diversification including emerging markets exposure, whereas SKYY maintains a concentrated U.S.-centric profile with modified equal weighting to balance large and mid-cap names.
- Both ETFs share significant overlap in technology sector holdings but differ in strategy type (active thematic versus passive sector-specific), cost structure, and risk concentration tied to AI innovation versus cloud infrastructure adoption.
- Investors seeking pure generative AI thematic exposure may favor CHAT’s active approach, while those preferring lower-cost, rules-based cloud computing access may lean toward SKYY’s passive structure.
Introduction
Roundhill Generative AI & Technology ETF (CHAT) and First Trust Cloud Computing ETF (SKYY) both provide targeted exposure to high-growth technology themes central to digital transformation. They do not compete directly as identical products; instead, they offer complementary yet distinct strategies within the broader artificial intelligence (AI) and cloud ecosystem. CHAT pursues active selection of companies advancing generative AI capabilities worldwide, while SKYY delivers passive replication of cloud computing industry performance. This comparison helps investors evaluate structural differences, cost implications, and positioning for portfolios focused on innovation-driven sectors amid ongoing capital allocation toward technology infrastructure and applications.
Roundhill Generative AI & Technology ETF (CHAT) Overview
Roundhill Generative AI & Technology ETF (CHAT) is an actively managed exchange-traded fund launched in May 2023 that seeks long-term capital appreciation by investing at least 80 percent of assets in equity securities of companies involved in generative AI and related technologies. The fund maintains 43 to 50 holdings with a portfolio turnover rate near 92 percent. Top positions typically include NVIDIA Corp. (NVDA), Alphabet Inc. (GOOGL), SK hynix Inc., Microsoft Corp. (MSFT), and ASML Holding NV, reflecting emphasis on semiconductors, software platforms, and hardware enablers. Sector allocations concentrate in information technology and communication services, with meaningful exposure to developed and emerging markets. The expense ratio stands at 0.75 percent. As a non-diversified, actively managed thematic vehicle, CHAT employs discretionary security selection rather than strict index replication, allowing flexibility to adjust to evolving AI trends.
First Trust Cloud Computing ETF (SKYY) Overview
First Trust Cloud Computing ETF (SKYY) is a passively managed fund launched in 2011 that seeks to replicate the performance of the ISE CTA Cloud Computing Index before fees and expenses. The ETF holds approximately 66 securities with a modified equal-weight approach to mitigate concentration risk. Prominent holdings often feature Everpure Inc. (P), Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL), International Business Machines Corp. (IBM), and Nutanix Inc. (NTNX), spanning cloud infrastructure, software-as-a-service, and related services. Sector exposure is overwhelmingly in information technology, with the balance in communication services and consumer discretionary. The fund maintains a U.S.-centric focus exceeding 90 percent of assets, supplemented by modest international developed-market allocations. The expense ratio is 0.60 percent. As a rules-based index tracker, SKYY rebalances periodically according to index methodology to maintain targeted cloud computing exposure.
Industry and Thematic Backdrop
The technology sector, particularly AI and cloud computing, continues to attract substantial institutional and retail capital driven by enterprise adoption of automation tools, data center expansion, and productivity-enhancing applications. Macroeconomic factors such as interest rate expectations, capital expenditure cycles among hyperscale providers, and regulatory scrutiny around data privacy and competition influence both themes. Generative AI developments accelerate demand for specialized semiconductors and software platforms, while cloud infrastructure benefits from hybrid deployment models and digital migration. Risks include elevated valuations, potential supply chain disruptions in semiconductor manufacturing, and shifts in corporate spending priorities during economic uncertainty. These dynamics create a supportive environment for thematic technology exposure while highlighting the importance of diversification across related but distinct sub-sectors.
Performance and Positioning Comparison
In recent market cycles, Roundhill Generative AI & Technology ETF (CHAT) has exhibited higher volatility consistent with its concentrated active bets on generative AI leaders and global holdings, responding sharply to earnings momentum in semiconductor and software names. First Trust Cloud Computing ETF (SKYY) has delivered more measured movements tied to steady cloud service demand and infrastructure spending patterns. Relative positioning shows CHAT benefiting from rapid AI innovation cycles and international diversification, while SKYY gains from established U.S. cloud ecosystem stability and lower cost drag. Sector rotation favoring technology infrastructure has supported both, yet CHAT’s active mandate introduces greater sensitivity to individual company developments compared with SKYY’s index-driven approach.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Investors seeking data-driven insights into funds like Roundhill Generative AI & Technology ETF (CHAT) or First Trust Cloud Computing ETF (SKYY) may find the platform useful for refining research.
Tickeron AI Verdict
Based on observable factors including lower expense ratio, established index methodology, and broad cloud computing diversification, Tickeron’s AI would currently assign a higher probabilistic preference to First Trust Cloud Computing ETF (SKYY) for investors prioritizing cost efficiency and rules-based exposure. Roundhill Generative AI & Technology ETF (CHAT) offers compelling active thematic depth in generative AI but carries higher fees and concentration risk. Final selection depends on individual risk tolerance, time horizon, and portfolio objectives; this assessment reflects structural characteristics rather than investment advice.
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 SKYY is a Hold.
CHAT's RSI Oscillator ascends from oversold territory
The RSI Oscillator for CHAT moved out of oversold territory on October 26, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 18 similar instances when the indicator left oversold territory. In 18 of the 18 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
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%.
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.
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%.
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%.
Momentum Indicator for SKYY turns positive, indicating new upward trend
SKYY saw its Momentum Indicator move above the 0 level on October 28, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In 77 of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +1.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where SKYY advanced for three days, in 313 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 88%.
SKYY 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 215 of 226 cases where SKYY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
Bearish Trend Analysis
The 10-day RSI Indicator for SKYY moved out of overbought territory on October 12, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 35 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 85%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 54 of 60 cases where SKYY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 90%.
The Moving Average Convergence Divergence Histogram (MACD) for SKYY turned negative on October 30, 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 49 similar instances when the indicator turned negative. In 44 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
SKYY moved below its 50-day moving average on October 30, 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 SKYY 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 88%.
| CHAT | SKYY | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 90% | 4 days ago 85% |
| Stochastic ODDS (%) | 4 days ago 78% | 4 days ago 90% |
| Momentum ODDS (%) | 4 days ago 83% | 4 days ago 90% |
| MACD ODDS (%) | 4 days ago 78% | 4 days ago 90% |
| TrendWeek ODDS (%) | 4 days ago 79% | 4 days ago 86% |
| TrendMonth ODDS (%) | 4 days ago 89% | 4 days ago 85% |
| Advances ODDS (%) | 6 days ago 90% | 6 days ago 88% |
| Declines ODDS (%) | 4 days ago 77% | 4 days ago 88% |
| BollingerBands ODDS (%) | 4 days ago 90% | 4 days ago 90% |
| Aroon ODDS (%) | 4 days ago 90% | 4 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% | ||
More | ||||
SKYY and
Correlation & Price change
A.I.dvisor indicates that over the last year, SKYY has been closely correlated with RBRK. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if SKYY jumps, then RBRK could also see price increases.
| Ticker / NAME | Correlation To SKYY | 1D Price Change % | ||
|---|---|---|---|---|
| SKYY | 100% | -4.57% | ||
| RBRK - SKYY | 72% Closely correlated | -7.09% | ||
| CRWD - SKYY | 70% Closely correlated | -4.10% | ||
| TWLO - SKYY | 68% Closely correlated | -15.24% | ||
| ESTC - SKYY | 67% Closely correlated | -5.83% | ||
| FIVN - SKYY | 67% Closely correlated | -2.86% | ||
More | ||||
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| LQ | 23.94 | 0.01 | +0.04% |
| Simplify Tax Aware Alternatives ETF (LQ) | |||
| DTD | 96.84 | -0.49 | -0.50% |
| WisdomTree U.S. Total Dividend Fund (DTD) | |||
| RSSY | 26.40 | -0.17 | -0.64% |
| Return Stacked U.S. Stocks & Futures Yield ETF | |||
| FMTL | 31.16 | -1.20 | -3.69% |
| First Trust Indxx Critical Metals ETF (FMTL) | |||
| YMAX | 6.87 | -0.27 | -3.78% |
| YieldMax Universe Fund of Option Income ETFs (YMAX) | |||