CHAT vs QQQ
Roundhill Generative AI & Technology ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. CHAT delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | CHAT | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.18% | |
| AUM | $1.7B | $455.8B | |
| Dividend Yield | 0.00% | 0.41% | |
| Holdings | 45 | 108 | |
| YTD Return | +53.49% | +18.31% | |
| 1Y Return | +72.86% | +25.37% | |
| 3Y Return (annualized) | +49.57% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 32.0% | 30.6% | |
| Max Drawdown | -31.3% | -83.0% | |
| Fund Family | Roundhill Investments | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 18, 2023 | Mar 10, 1999 |
CHAT vs QQQ Performance
Roundhill Generative AI & Technology ETF (CHAT) is a ETF from Roundhill Investments and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CHAT returned +72.86% while QQQ returned +25.37%. Year to date, CHAT is up 53.49% versus a gain of 18.31% for QQQ.
Over three years, CHAT compounded at +49.57% per year against +25.79% for QQQ. Across the full 3-year window we track, CHAT has the edge at +49.56% annualized vs +13.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CHAT has been the more volatile fund, with annualized monthly volatility of 32.0% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -31.3% for CHAT and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
CHAT charges 0.75% per year while QQQ charges 0.18%. On a $10,000 position that is $75 vs $18 annually, a gap of $57 per year that compounds over a long holding period. On income, CHAT currently yields 0.00% against 0.41% for QQQ.
Holdings Overlap
CHAT and QQQ share 16 holdings out of 132 unique holdings combined, representing a 32.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CHAT or QQQ?
CHAT has an expense ratio of 0.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $57 per year of difference.
Which performed better, CHAT or QQQ?
Over the past year CHAT returned +72.86% vs +25.37% for QQQ, so CHAT leads on 1-year performance. Over the longest common window we track (3 years), CHAT annualized +49.56% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, CHAT or QQQ?
CHAT has been the more volatile fund at 32.0% annualized versus 30.6% for QQQ. Worst drawdown: CHAT -31.3% vs QQQ -83.0%.
Should I hold both CHAT and QQQ?
CHAT and QQQ have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between CHAT and QQQ?
CHAT and QQQ share 16 common holdings with a 32.3% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, CHAT or QQQ?
CHAT yields 0.00% while QQQ yields 0.41%, so QQQ currently pays the higher dividend yield.
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