XSW vs. CHAT

Last updated Jun 4, 2026

XSW (SPDR S&P Software & Services ETF) and CHAT (Roundhill Generative AI & Technology ETF) are both Technology Equities funds. XSW is passively managed, while CHAT is actively managed. Over the past 3 years, XSW returned 11.02%/yr vs 55.51%/yr for CHAT. A 0.63 correlation means they provide meaningful diversification when combined. XSW charges 0.35%/yr vs 0.75%/yr for CHAT.

Performance

XSW vs. CHAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Software & Services ETF (XSW) 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, XSW achieves a -6.38% return, which is significantly lower than CHAT's 74.30% return.

XSW

• 1D: -4.18%
• 1M: 9.35%
• YTD: -6.38%
• 6M: -7.49%
• 1Y: -4.24%
• 3Y*: 11.02%
• 5Y*: 1.69%
• 10Y*: 13.33%

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)

XSW vs. CHAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XSW SPDR S&P Software & Services ETF	-6.38%	-0.90%	25.81%	23.24%
CHAT Roundhill Generative AI & Technology ETF	74.30%	49.85%	30.98%	19.23%

Correlation

The correlation between XSW and CHAT is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (All Time) Calculated using the full available price history since May 19, 2023	0.63

The correlation between XSW and CHAT shifts across timeframes, from 0.46 (1 year) to 0.63 (3 years), reflecting how their relationship changes across market environments.

XSW vs. CHAT - Sectors Allocation Comparison

Sectors	XSW	CHAT
Technology	86.5%	76.5%
Financial Services	8.1%	0.0%
Communication Services	2.9%	16.6%
Consumer Cyclical	1.0%	5.6%
Industrials	0.8%	0.8%
Healthcare	0.7%	-
Basic Materials	-	-
Consumer Defensive	-	-
Energy	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

XSW vs. CHAT — Risk / Return Rank

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

XSW

XSW Risk / Return Rank: 7
XSW Sharpe Ratio Rank: 7
XSW Sortino Ratio Rank: 7
XSW Omega Ratio Rank: 7
XSW Calmar Ratio Rank: 7
XSW Martin Ratio Rank: 7

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.

XSW vs. CHAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Software & Services ETF (XSW) 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.

	XSW	CHAT	Difference
Sharpe ratio Return per unit of total volatility	-0.15	4.72	-4.87
Sortino ratio Return per unit of downside risk	-0.01	4.86	-4.87
Omega ratio Gain probability vs. loss probability	1.00	1.65	-0.66
Calmar ratio Return relative to maximum drawdown	-0.13	8.90	-9.02
Martin ratio Return relative to average drawdown	-0.27	26.26	-26.53
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XSW vs. CHAT - Sharpe Ratio Comparison

The current XSW Sharpe Ratio is -0.15, which is lower than the CHAT Sharpe Ratio of 4.72. The chart below compares the historical Sharpe Ratios of XSW 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

	XSW	CHAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.15	4.72	-4.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.06	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.63	1.98	-1.35

Drawdowns

XSW vs. CHAT - Drawdown Comparison

The maximum XSW drawdown since its inception was -45.38%, which is greater than CHAT's maximum drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for XSW and CHAT.

Drawdown Indicators

	XSW	CHAT	Difference
Max Drawdown Largest peak-to-trough decline	-45.38%	-31.34%	-14.04%
Max Drawdown (1Y) Largest decline over 1 year	-33.75%	-16.28%	-17.47%
Max Drawdown (3Y) Largest decline over 3 years	-33.75%	-31.34%	-2.41%
Max Drawdown (5Y) Largest decline over 5 years	-45.38%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.38%	—	—
Current Drawdown Current decline from peak	-14.64%	-0.66%	-13.98%
Average Drawdown Average peak-to-trough decline	-9.83%	-5.35%	-4.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.71%	5.51%	+10.20%

Volatility

XSW vs. CHAT - Volatility Comparison

The current volatility for SPDR S&P Software & Services ETF (XSW) is 10.68%, while Roundhill Generative AI & Technology ETF (CHAT) has a volatility of 11.70%. This indicates that XSW 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

	XSW	CHAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.68%	11.70%	-1.02%
Volatility (6M) Calculated over the trailing 6-month period	23.51%	24.62%	-1.11%
Volatility (1Y) Calculated over the trailing 1-year period	28.63%	30.74%	-2.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.79%	29.90%	-1.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.25%	29.90%	-3.65%

XSW vs. CHAT - Expense Ratio Comparison

XSW has a 0.35% expense ratio, which is lower than CHAT's 0.75% expense ratio.

Dividends

XSW vs. CHAT - Dividend Comparison

XSW's dividend yield for the trailing twelve months is around 0.04%, less than CHAT's 1.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CHAT Roundhill Generative AI & Technology ETF	1.64%	2.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XSW SPDR S&P Software & Services ETF	0.04%	0.06%	0.07%	0.20%	0.09%	0.13%	0.26%	0.12%	0.31%	0.46%	0.87%	0.54%

Frequently Asked Questions

Can I hold both XSW and CHAT in my portfolio?

XSW and CHAT have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XSW or CHAT?

CHAT has higher volatility (11.70%) compared to XSW (10.68%). In terms of maximum drawdown, XSW dropped -45.38% vs CHAT's -31.34%.

Which ETF is better, XSW or CHAT?

On 3-year performance, CHAT leads with 55.51% vs 11.02% for XSW. On fees, XSW is cheaper at 0.35% per year. On volatility, XSW has been the lower-risk option at 10.68%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSW or CHAT?

Over the 3-year period, CHAT has performed better with a 55.51% return vs 11.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSW or CHAT?

XSW is cheaper with a 0.35% expense ratio, compared with 0.75% for CHAT.

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

CHAT has the higher dividend yield at 1.64%, compared with 0.04% for XSW.

What is the main difference between XSW and CHAT?

They also come from different issuers: State Street and Roundhill. Their fees differ too: 0.35% for XSW and 0.75% for CHAT.

Which has better risk-adjusted returns?

CHAT currently has the higher Sharpe Ratio (4.72 vs -0.15), 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.