CHAT, a new generative AI focused ETF, launched by Roundhill Investments
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Roundhill Investments launched the Roundhill Generative AI & Technology ETF (NYSEARCA:CHAT) on Thursday. The investment vehicle represents an actively managed exchange traded fund that aims to offer exposure to stocks at the forefront of burgeoning artificial intelligence space.
Specifically, CHAT targets companies involved in generative AI. This mandate includes platforms where businesses build and develop large language models and AI tools that third party developers can use to build out applications. CHAT also invests in stocks involved with AI infrastructure, as well as enterprise and consumer software.
Dave Mazza, Chief Strategy Officer at Roundhill Investments stated: "Generative AI represents the next frontier of artificial intelligence technology, offering the potential to revolutionize industries such as entertainment, healthcare, and more. With CHAT, investors can gain exposure to this rapidly-evolving field, potentially benefiting from what we believe will be the exponential growth of generative AI technology."
In terms of structure, CHAT comes attached with a 0.75% expense ratio and 29 holdings, led by shares of Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGL) and Baidu Inc. (BIDU). NVDA represents a 7.77% portfolio position, whereas MSFT, GOOGL, and BIDU have weightings of 7.64%, 7.20% and 5.42%, respectively.
Moreover, Roundhillâs proprietary research outlined that there is a total addressable market of $120B to enterprise generative AI software. Roundhill also quoted Goldman Sachs research, which suggests that AI can potentially fuel $7T worth of global growth throughout the next seven years due to accelerated productivity growth.
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