Semiconductor ETF vs Generative AI ETF: Which Delivers Better Returns?
Key Points
iShares Semiconductor ETF features a 0.33% expense ratio and a 93.4% 1-year total return, while Roundhill Generative AI & Technology ETF has a 0.75% expense ratio and a 45.1% 1-year total return.
Roundhill Generative AI & Technology ETF maintains a 1.9% dividend yield, which is higher than the 0.2% yield from iShares Semiconductor ETF.
iShares Semiconductor ETF is a concentrated basket of 30 semiconductor companies, whereas Roundhill Generative AI & Technology ETF holds 52 positions across technology, communication services, and consumer cyclicals.
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iShares Semiconductor ETF focuses on concentrated chipmaker exposure at lower cost. At the same time, Roundhill Generative AI & Technology ETF provides broader exposure to artificial intelligence across software and services, with a higher yield.
These two funds capture the technology sector's most aggressive growth drivers. While one targets the hardware backbone of modern computing, the other casts a wider net across the generative artificial intelligence landscape. This comparison analyzes which approach better fits a long-term portfolio.
Snapshot (cost & size)
| Metric | SOXX | CHAT |
|---|---|---|
| Issuer | iShares | Roundhill Investments |
| Share price | $559.40 (as of 2026-10-09) | $92.22 (as of 2026-10-09) |
| Expense ratio | 0.33% | 0.75% |
| 1-yr return (as of 2026-10-09) | 93.4% | 53.8% |
| Dividend yield | 0.2% | 1.9% |
| Beta | 1.83 | 1.89 |
| AUM | $45.9B | $1.9B |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is significantly more affordable, sporting an expense ratio less than half that of its Roundhill counterpart. While the iShares fund has delivered higher total returns recently, the Roundhill fund offers a much higher payout for income-seeking investors.
Performance & risk comparison
| Metric | SOXX | CHAT |
|---|---|---|
| Max drawdown (3 yr) | (41.7%) | (31.3%) |
| Growth of $1,000 over 3 years (total return) | $3,407 | $3,268 |
What's inside
Roundhill Generative AI & Technology ETF focuses on software and infrastructure, with 79% in technology and 12% in communication services. Its 52 holdings are led by Nvidia (NASDAQ:NVDA) at 6.92%, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) at 5.55%, and SK Hynix (NASDAQ:SKHY) at 3.97%. It was launched in 2023. Roundhill Generative AI & Technology ETF has paid $1.68 per share over the trailing 12 months, which, on its recent ~$92.22 share price, works out to a 1.9% yield.
iShares Semiconductor ETF provides narrower chipmaker exposure, split between semiconductors (82%) and equipment (18%). Its 30 positions include these top holdings: Advanced Micro Devices (NASDAQ:AMD) at 9.36%, Intel (NASDAQ:INTC) at 8.48%, and Micron Technology (NASDAQ:MU) at 7.78%. It was launched in 2001. iShares Semiconductor ETF has paid $1.25 per share over the trailing 12 months, which works out to a 0.2% yield on its recent ~$559.40 share price.
For more guidance on ETF investing, check out the full guide at this link.
Image source: Getty Images.
Which looks like the better buy
Both of these funds offer exposure to the AI boom, but from very different angles. The iShares Semiconductor ETF lives up to its name by focusing on hardware stocks. The Roundhill ETF almost looks like a Nasdaq index fund with heavy weighting of several Magnificent 7 stocks.
So it's a focused approach versus a broader portfolio. The Roundhill fund also nearly doubles the number of stocks under management, adding weight to its diversification argument.
On the other hand, the Roundhill Generative AI & Technology fund carries a much heavier management fee and has underperformed the iShares ETF in recent years.
One might argue that they serve different types of investors, but the Roundhill fund's fees are a deal-breaker for me. The iShares Semiconductor ETF wins on a technical knockout.
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Anders Bylund has positions in Alphabet, Intel, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Intel, Micron Technology, Nvidia, and iShares Trust - iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
