Roundhill Investments Launches Generative AI & Technology ETF (NYSE Arca: CHAT)

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May 18, 2023, 08:25 ET

Roundhill's research estimates suggest $120+ billion total addressable market for Generative AI enterprise software

NEW YORK, May 18, 2023 /PRNewswire/ -- Roundhill Investments, an ETF sponsor focused on innovative financial products, is pleased to announce the launch of the Roundhill Generative AI & Technology ETF (NYSE Arca: CHAT), which begins trading today on the NYSE Arca. CHAT provides investors exposure to companies at the forefront of artificial intelligence technology, with a focus on generative AI.

Dave Mazza, Chief Strategy Officer at Roundhill Investments, explains, "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."

Unlike other technological megatrends, generative AI has already begun to have significant real-world impact. OpenAI's ChatGPT has become the fastest application ever to reach 100 million users*, and its customers are already integrating its technology to improve their everyday lives for everything from creative writing to coding software.

Our proprietary research assigns a total addressable market of ~$120 billion to enterprise generative AI software. Meanwhile, Goldman Sachs research suggests artificial intelligence could drive $7 trillion in global economic growth over the next seven years as a result of accelerated productivity growth.

Generative AI is a type of artificial intelligence technology that uses neural networks to generate new data that is similar in structure and format to existing data. Unlike other AI techniques that use existing data to make predictions or classifications, generative AI can create entirely new data that is original and unique. This is accomplished through the use of complex algorithms that learn to recognize patterns and relationships within large datasets, allowing the AI system to generate new content or ideas that are similar in style or format.

The Roundhill Generative AI ETF (CHAT) is an actively-managed ETF that is designed to provide exposure to companies around the globe involved in generative AI and related technologies.

CHAT's top holdings at launch include: Nvidia (7.8% weight), Microsoft (7.6% weight), Alphabet (7.2% weight), Baidu (5.4% weight), iFLYTEK (5.0% weight), Adobe (4.9% weight), AMD (4.9% weight), SenseTime Group (4.7% weight), C3.ai (4.5% weight) and Salesforce (NYSE: CRM - 3.6% weight).

"We had been hearing from investors for months that they were interested in investing in generative AI, but were frustrated by the lack of ETF options available to them. Roundhill is excited to be able to meet market demand with CHAT, an ETF comprised of the companies pioneering what we believe to be one of the fastest growing technologies in history," added Mazza.

For more information on CHAT, please visit https://www.roundhillinvestments.com/etf/chat.

About Roundhill Investments:

Roundhill Investments is a registered investment adviser focused on offering innovative financial products designed to offer exposure to investment themes that appeal to the next generation of investors. To learn more about the company, please visit roundhillinvestments.com.

*Source: Goldman Sachs Investment Research Report 3/26/2023

Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the CHAT ETF please call 1-855-561-5728 or visit the website http://www.roundhillinvestments.com/etf/chat. Read the prospectus and summary prospectus carefully before investing. Investing involves risk. Principal loss is possible.

The Fund expects to have concentrated (i.e., invest more than 25% of its net assets) investment exposure in one or more of the Technology Industries at any given time, which may vary over time. Further, the Fund expects to obtain such investment exposure by transacting primarily with a limited number of financial intermediaries conducting business in the same industry or group of related industries. As a result, the Fund is more vulnerable to adverse market, economic, regulatory, political or other developments affecting those industries or groups of related industries than a fund that invests its assets in a more diversified manner. The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.

Artificial Intelligence Company Risk. Companies involved in, or exposed to, artificial intelligence related businesses may have limited product lines, markets, financial resources or personnel.

Technology Sector Risk. The Fund will invest substantially in companies in the information technology sector, and therefore the performance of the Fund could be negatively impacted by events affecting this sector.

Foreign Securities Risk. Investments in securities or other instruments of non-U.S. issuers involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies.

Non-Diversification Risk. Because the Fund is "non-diversified," it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

Concentration Risk. The Fund will be concentrated in securities of issuers having their principal business activities in the technology group of industries.

CHAT is distributed by Foreside Fund Services, LLC.

SOURCE Roundhill Investments