ALAI vs. CHAT

Last updated Jun 4, 2026

ALAI (Alger AI Enablers & Adopters ETF) and CHAT (Roundhill Generative AI & Technology ETF) are both Technology Equities funds. Both are actively managed. Over the past year, ALAI returned 63.92% vs 144.01% for CHAT. Their correlation of 0.87 suggests significant overlap in exposure. ALAI charges 0.55%/yr vs 0.75%/yr for CHAT.

Performance

ALAI vs. CHAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) and Roundhill Generative AI & Technology ETF (CHAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALAI achieves a 27.17% return, which is significantly lower than CHAT's 74.30% return.

ALAI

• 1D: -1.25%
• 1M: 13.53%
• YTD: 27.17%
• 6M: 26.74%
• 1Y: 63.92%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CHAT

• 1D: -0.66%
• 1M: 27.78%
• YTD: 74.30%
• 6M: 73.13%
• 1Y: 144.01%
• 3Y*: 55.51%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALAI vs. CHAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ALAI Alger AI Enablers & Adopters ETF	27.17%	39.81%	31.43%
CHAT Roundhill Generative AI & Technology ETF	74.30%	49.85%	14.72%

Correlation

The correlation between ALAI and CHAT is 0.81, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.81
Correlation (All Time) Calculated using the full available price history since Apr 8, 2024	0.87

The correlation between ALAI and CHAT has been stable across timeframes, ranging from 0.81 to 0.87 - a consistent structural relationship.

ALAI vs. CHAT - Sectors Allocation Comparison

Sectors	ALAI	CHAT
Technology	55.9%	76.5%
Communication Services	20.1%	16.6%
Consumer Cyclical	13.7%	5.6%
Industrials	3.2%	0.8%
Healthcare	2.8%	-
Financial Services	2.3%	0.0%
Utilities	2.0%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-

Return for Risk

ALAI vs. CHAT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALAI

ALAI Risk / Return Rank: 70
ALAI Sharpe Ratio Rank: 81
ALAI Sortino Ratio Rank: 71
ALAI Omega Ratio Rank: 70
ALAI Calmar Ratio Rank: 66
ALAI Martin Ratio Rank: 60

CHAT

CHAT Risk / Return Rank: 94
CHAT Sharpe Ratio Rank: 97
CHAT Sortino Ratio Rank: 94
CHAT Omega Ratio Rank: 93
CHAT Calmar Ratio Rank: 96
CHAT Martin Ratio Rank: 94

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALAI vs. CHAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) and Roundhill Generative AI & Technology ETF (CHAT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ALAI	CHAT	Difference
Sharpe ratio: Return per unit of total volatility	2.67	4.72	-2.05
Sortino ratio: Return per unit of downside risk	3.27	4.86	-1.58
Omega ratio: Gain probability vs. loss probability	1.42	1.65	-0.23
Calmar ratio: Return relative to maximum drawdown	3.30	8.90	-5.60
Martin ratio: Return relative to average drawdown	10.58	26.26	-15.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ALAI vs. CHAT - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 2.67, which is lower than the CHAT Sharpe Ratio of 4.72. The chart below compares the historical Sharpe Ratios of ALAI and CHAT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ALAI	CHAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.67	4.72	-2.05
Sharpe Ratio (All Time) Calculated using the full available price history	1.71	1.98	-0.27

Drawdowns

ALAI vs. CHAT - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, smaller than the maximum CHAT drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for ALAI and CHAT.

Drawdown Indicators

	ALAI	CHAT	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-31.34%	+1.98%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-16.28%	-3.20%
Max Drawdown (3Y) Largest decline over 3 years	—	-31.34%	—
Current Drawdown Current decline from peak	-1.69%	-0.66%	-1.03%
Average Drawdown Average peak-to-trough decline	-5.14%	-5.35%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.06%	5.51%	+0.55%

Volatility

ALAI vs. CHAT - Volatility Comparison

The current volatility for Alger AI Enablers & Adopters ETF (ALAI) is 6.97%, while Roundhill Generative AI & Technology ETF (CHAT) has a volatility of 11.70%. This indicates that ALAI experiences smaller price fluctuations and is considered to be less risky than CHAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALAI	CHAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.97%	11.70%	-4.73%
Volatility (6M) Calculated over the trailing 6-month period	18.57%	24.62%	-6.05%
Volatility (1Y) Calculated over the trailing 1-year period	24.06%	30.74%	-6.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.41%	29.90%	-1.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.41%	29.90%	-1.49%

ALAI vs. CHAT - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is lower than CHAT's 0.75% expense ratio.

Dividends

ALAI vs. CHAT - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.18%, less than CHAT's 1.64% yield.

Position	TTM	2025	2024
ALAI Alger AI Enablers & Adopters ETF	1.18%	1.50%	0.66%
CHAT Roundhill Generative AI & Technology ETF	1.64%	2.85%	0.00%

Frequently Asked Questions

Can I hold both ALAI and CHAT in my portfolio?

ALAI and CHAT have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or CHAT?

CHAT has higher volatility (11.70%) compared to ALAI (6.97%). In terms of maximum drawdown, ALAI dropped -29.36% vs CHAT's -31.34%.

Which ETF is better, ALAI or CHAT?

On 1-year performance, CHAT leads with 144.01% vs 63.92% for ALAI. On fees, ALAI is cheaper at 0.55% per year. On volatility, ALAI has been the lower-risk option at 6.97%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ALAI or CHAT?

Over the 1-year period, CHAT has performed better with a 144.01% return vs 63.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or CHAT?

ALAI is cheaper with a 0.55% expense ratio, compared with 0.75% for CHAT.

Which ETF pays a higher dividend yield, ALAI or CHAT?

CHAT has the higher dividend yield at 1.64%, compared with 1.18% for ALAI.

What is the main difference between ALAI and CHAT?

They also come from different issuers: Alger and Roundhill. Their fees differ too: 0.55% for ALAI and 0.75% for CHAT.

Which has better risk-adjusted returns?

CHAT currently has the higher Sharpe Ratio (4.72 vs 2.67), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.