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CHAT vs TRFK
Which ETF would AI Choose? Roundhill Generative AI & Technology ETF (CHAT) vs. Pacer Data and Digital Revolution ETF (TRFK)
Key Takeaways
- CHAT is an actively managed thematic ETF focused on generative artificial intelligence (AI) and related technologies, while TRFK is a passively managed fund tracking an index of companies involved in data transmission, storage, and digital infrastructure.
- CHAT maintains a concentrated portfolio of approximately 43 holdings with significant exposure to generative AI leaders, whereas TRFK holds around 70-100 securities emphasizing semiconductors, communications equipment, and data-related hardware and software.
- TRFK offers a lower expense ratio of 0.49% compared to CHAT’s 0.75%, providing a cost advantage for long-term investors seeking broad data-revolution exposure.
- Both ETFs deliver concentrated technology sector exposure, with heavy weightings in semiconductors and software, but CHAT’s active strategy allows greater flexibility in selecting generative AI-specific opportunities.
- TRFK’s rules-based index methodology promotes consistent rebalancing tied to revenue thresholds from data activities, while CHAT’s active approach targets companies driving productivity gains through generative AI tools.
- In the current environment of accelerating digital transformation, TRFK provides broader diversification across the data ecosystem, whereas CHAT offers targeted positioning in emerging generative AI applications.
Introduction
Investors seeking exposure to artificial intelligence and digital infrastructure often compare thematic technology ETFs. The Roundhill Generative AI & Technology ETF (CHAT) and the Pacer Data and Digital Revolution ETF (TRFK) both target high-growth segments of the technology sector but pursue distinct strategies. CHAT emphasizes generative AI innovation through active management, while TRFK delivers passive exposure to companies enabling data manipulation, transmission, and storage. These funds serve as complementary or alternative options for investors navigating sector rotation and technological advancement rather than direct competitors.
Roundhill Generative AI & Technology ETF (CHAT) Overview
The Roundhill Generative AI & Technology ETF (CHAT) is an actively managed exchange-traded fund launched in May 2023. It seeks to invest at least 80% of its assets in equity securities of companies globally involved in generative AI and related technologies. The fund typically holds around 43 securities. Top holdings often include NVIDIA Corp, Alphabet Inc, SK hynix Inc, Microsoft Corp, ASML Holding NV, Advanced Micro Devices Inc, Amazon.com Inc, and Astera Labs Inc. Sector allocations concentrate in technology, particularly semiconductors, software, and hardware supporting AI development. CHAT carries an expense ratio of 0.75%. Its active management allows the portfolio team to adjust holdings based on evolving generative AI themes without strict index constraints.
Pacer Data and Digital Revolution ETF (TRFK) Overview
The Pacer Data and Digital Revolution ETF (TRFK) is a passively managed fund launched in June 2022 that tracks the Pacer Data Transmission and Communication Revolution Index. The index selects global companies deriving at least 50% of revenue from data-related activities, including semiconductors, communications equipment, storage, and systems software. TRFK typically holds 70-100 securities. Prominent holdings frequently feature NVIDIA Corp, Broadcom Inc, Micron Technology Inc, Advanced Micro Devices Inc, Cisco Systems Inc, Intel Corp, Oracle Corp, and Palo Alto Networks Inc. Technology dominates sector allocations, with significant sub-sector exposure to semiconductors and technology hardware. The fund maintains an expense ratio of 0.49% and employs rules-based rebalancing tied to index constituents.
Industry and Thematic Backdrop
The broader technology sector continues to benefit from sustained demand for data infrastructure and AI capabilities. Capital flows into semiconductor and cloud computing companies reflect ongoing enterprise adoption of digital tools. Regulatory developments around data privacy and AI ethics remain key considerations, while macroeconomic factors such as interest rate expectations influence capital expenditure cycles in technology hardware. Geopolitical tensions affecting semiconductor supply chains and commodity trends in rare earth materials add layers of complexity. Both ETFs operate within an environment of rapid technological innovation balanced against valuation scrutiny and potential shifts in capital allocation across growth sectors.
Performance and Positioning Comparison
In recent market cycles, both ETFs have exhibited sensitivity to technology earnings reports and shifts in investor sentiment toward growth-oriented sectors. CHAT’s active focus on generative AI themes has positioned it to capture upside from companies advancing large language models and related applications during periods of strong sector momentum. TRFK’s broader data-revolution mandate has provided exposure to foundational infrastructure plays, potentially offering relative stability amid volatility in pure-play AI names. Differences in volatility profiles stem from CHAT’s concentrated active selections versus TRFK’s index-driven diversification. Sector rotation favoring hardware or software has influenced relative positioning, with both funds responding to broader interest rate and economic growth expectations.
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 thematic ETFs like CHAT and TRFK may find the platform useful for refining their screening process.
Tickeron AI Verdict
Based on observable structural factors, Tickeron’s AI would likely favor the Pacer Data and Digital Revolution ETF (TRFK) at present. Its lower expense ratio, passive index methodology, and broader diversification across the data ecosystem provide advantages in cost efficiency and risk distribution. TRFK’s rules-based approach to capturing companies with substantial data-related revenue offers consistent exposure to foundational digital infrastructure trends. While CHAT provides compelling active positioning in generative AI, TRFK’s overall profile aligns with probabilistic preferences for balanced cost and thematic breadth in the current environment.
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 TRFK 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 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 30 of the 36 cases the stock turned lower in the days that followed. This puts the odds of success at 83%.
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 shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.79% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHAT advanced for three days, in 261 of 285 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 244 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%.
Momentum Indicator for TRFK turns negative, indicating new downward trend
TRFK saw its Momentum Indicator move below the 0 level on October 08, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 67 similar instances where the indicator turned negative. In 56 of the 67 cases, the stock moved further down in the following days. The odds of a decline are at 84%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for TRFK 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 45 similar instances when the indicator turned negative. In 35 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 78%.
TRFK 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 TRFK crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 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 81%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TRFK 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 76%.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.57% 3-day Advance, the price is estimated to grow further. Considering data from situations where TRFK advanced for three days, in 297 of 329 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
TRFK 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 271 of 295 cases where TRFK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
| CHAT | TRFK | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 90% | 1 day ago 90% |
| Stochastic ODDS (%) | 1 day ago 90% | 1 day ago 90% |
| Momentum ODDS (%) | 1 day ago 83% | 1 day ago 84% |
| MACD ODDS (%) | 1 day ago 83% | 1 day ago 78% |
| TrendWeek ODDS (%) | 1 day ago 79% | 1 day ago 77% |
| TrendMonth ODDS (%) | 1 day ago 89% | 1 day ago 81% |
| Advances ODDS (%) | 15 days ago 90% | 15 days ago 90% |
| Declines ODDS (%) | 5 days ago 77% | 5 days ago 76% |
| BollingerBands ODDS (%) | 1 day ago 88% | 1 day ago 90% |
| Aroon ODDS (%) | 1 day ago 90% | 1 day 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 71% 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% | -0.72% | ||
| COHR - CHAT | 71% Closely correlated | -0.09% | ||
| VRT - CHAT | 69% Closely correlated | -1.22% | ||
| ANET - CHAT | 63% Loosely correlated | -0.96% | ||
| ORCL - CHAT | 55% Loosely correlated | +1.20% | ||
| HPE - CHAT | 53% Loosely correlated | +0.39% | ||
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TRFK and
Correlation & Price change
A.I.dvisor indicates that over the last year, TRFK has been closely correlated with NVT. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if TRFK jumps, then NVT could also see price increases.
| Ticker / NAME | Correlation To TRFK | 1D Price Change % | ||
|---|---|---|---|---|
| TRFK | 100% | -0.38% | ||
| NVT - TRFK | 73% Closely correlated | -1.26% | ||
| ETN - TRFK | 70% Closely correlated | -2.43% | ||
| ANET - TRFK | 67% Closely correlated | -0.96% | ||
| VRT - TRFK | 67% Closely correlated | -1.22% | ||
| CIEN - TRFK | 64% Loosely correlated | -0.65% | ||
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