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Thematic AI ETFs: What Separates CHAT & THNQ

BY | ETF Database
10/16/2026 | 35 VIEWS
Markets today are defined by AI. From yields to the movements of the S&P 500 — the story is, like it or not, a story of data centers, chips, and models. For investors, then, what are the best ways to get exposure to AI when it already dominates the S&P 500? Thematic AI ETFs provide strong, deeply researched approaches in funds like the ROBO Global Artificial Intelligence ETF (THNQ B-) and the Roundhill Generative AI & Technology ETF (CHAT B).Key Takeaways: Thematic AI ETFs offer deeply researched exposure to the AI revolution driving markets. Not all such funds are created equal, however, with varied approaches to that innovation. THNQ offers better downstream reach into innovators and has outperformed CHAT this year. Why focus on these two funds? Although both thematic AI ETFs charge comparable expense ratios — 68 basis points for THNQ to 75 bps for CHAT — they approach the AI landscape from very different angles. CHAT, which launched in 2023, takes an active approach. The fund targets a 25- to 50-firm portfolio of companies tied to generative AI and related tech. Those firms must derive at least 50% of revenue from areas including, but not limited to, AI, semiconductors, and cloud and network infrastructure. Launched in 2020, THNQ takes a passive approach by tracking the ROBO Global Artificial Intelligence Index. The index selects global stocks from a proprietary database and classifies them into either infrastructure or applications and services. It then breaks those names down further into subcategories such as eCommerce, network and security, and semiconductors. Each fund’s portfolio really captures what those strategic differences produce. CHAT’s top holdings (per ETF Database data) include Nvidia (NVDA), Google (GOOGL), and Microsoft (MSFT) — all of which already heavily dominate the S&P 500. THNQ, meanwhile, targets downstream innovators like Everpure, Inc (P), Datadog Inc (DDOG), and Global Unichip Corp (3443) as its largest names. Furthermore, digging deeper, THNQ’s average weighted market cap is less than half that of CHAT. This reflects its deeper exposure to downstream players in the AI space. According to ETF Database, the approach has paid off: THNQ has returned 45% YTD compared to CHAT’s 41.3% return. THNQ has also outperformed in recent months, gaining roughly 4.5% over the past three months while CHAT fell 6.2% over the same period. See more: GAMR Video Game ETF Momentum Continues Into Q4 Thematic AI ETFs can help hone portfolios to target the AI revolution. Not all such funds offer the same purported exposures, however. The right, well-researched fund can combine performance and exposure to rising names without adding concentration risk. For those currently on the lookout for thematic AI ETFs, THNQ may be worth watching. For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for THNQ, for which it receives an index licensing fee. However, THNQ is/are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of THNQ.

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