Comparative Analysis of XLK and CHAT ETFs: Strategies and Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 29 2026
0mins
Should l Buy GOOGL?
Source: Fool
- Expense Ratio Difference: The State Street Technology Select Sector SPDR ETF (XLK) has an expense ratio of 0.08%, while the Roundhill Investments - Generative AI & Technology ETF (CHAT) is significantly higher at 0.75%, making XLK the more attractive option for cost-conscious investors.
- Return and Risk Comparison: As of January 27, 2026, XLK's one-year return stands at 30.91%, compared to CHAT's impressive 63.06%, but with CHAT experiencing a maximum drawdown of -31.35%, indicating greater volatility and risk.
- Holdings Structure Difference: CHAT focuses on generative AI with 52 holdings, heavily weighted at 85% in technology, while XLK provides broad exposure to the U.S. tech landscape with 70 stocks, primarily in giants like NVIDIA, Apple, and Microsoft.
- Investor Choice Consideration: For investors seeking steady tech exposure, XLK offers low-cost, broad market coverage, whereas CHAT suits those willing to accept higher risks for thematic AI investments, highlighting the fundamental strategic differences between the two.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 388.430
Low
305.00
Averages
374.25
High
400.00
Current: 388.430
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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