Could Buying $10,000 of This Generative Artificial Intelligence (AI) ETF Make You a Millionaire?

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Over the past three years, companies involved in generative AI have seen some of the largest gains in the stock market.

Companies involved in artificial intelligence have seen huge stock gains recently. Palantir (PLTR) has increased over 2,000% in three years, while Nvidia (NVDA), a leading AI chipmaker, is up more than 1,300%. Newer cloud companies like Nebius Group (NBIS) and CoreWeave (CRWV) have also experienced significant growth, with their stock prices rising by triple-digit percentages since they went public.

Imagine if you’d invested $10,000 in any of these successful companies before they took off – you could be on track to having a million-dollar investment eventually, even if their growth slows down. However, predicting which companies will dominate a new technology is incredibly challenging. If it were simple, everyone would be wealthy.

As an investor, I’m really interested in the potential of AI, and I’ve been looking at ways to benefit from its growth. Instead of trying to pick individual AI stocks – which can be risky – I’m considering the Roundhill Generative AI & Technology ETF (CHAT). It seems like a smart way to get exposure to the generative AI space without having to research and select individual companies. It could be a good alternative for anyone wanting to invest in AI but doesn’t want to gamble on specific stocks.

Looking under the hood

Roundhill invests in companies pushing the boundaries of generative AI. This includes businesses creating their own AI models and tools, those building the essential technology to power these models, and software companies bringing generative AI to market.

Because this is an exchange-traded fund, investors have full transparency into its investments. Here’s a look at the fund’s biggest holdings as of today.

  • Nvidia
  • Alphabet
  • Oracle
  • Microsoft
  • Meta Platforms
  • Broadcom
  • Tencent Holdings
  • Alibaba Group Holdings
  • ARM Holdings
  • Amazon

The list doesn’t contain many unexpected names. Arm is the most notable inclusion, as it’s considerably smaller than the other major tech companies that make up a large part of the portfolio. However, it’s still a substantial company with a market value of $165 billion.

Currently, this ETF invests in 40 different stocks and also uses strategies to protect against currency fluctuations for its international holdings. This broad approach increases the likelihood that a few of its companies will perform exceptionally well, potentially leading to returns that outperform the overall market. The ETF’s portfolio already includes some of 2025’s top-performing stocks, such as Palantir.

Launched in 2023, the Roundhill Generative AI & Technology ETF has seen remarkable growth, gaining 148% in value. This significantly outperforms the S&P 500, which has returned 66% overall, even when considering the ETF’s 0.75% annual fee.

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Could $10,000 invested make you a millionaire?

To grow a $10,000 investment into $1 million, the ETF would need to increase in value by 100 times its original amount. This could be challenging, given how large the companies it currently invests in already are.

Almost a third of our investments are in companies worth over $1 trillion. As companies get this large, it becomes increasingly difficult to achieve significant percentage growth. For example, even a 25% increase for Nvidia would be like adding an entirely new $1 trillion business. While these huge companies can still grow, there’s a limited amount of money available globally, which eventually impacts potential growth rates.

The ETF’s investments mainly consist of small businesses, and only a few have the potential for substantial growth.

Looking at the portfolio, I’m seeing some pretty high valuations across several stocks. Palantir, for example, is trading at a forward P/E of 280, and Nebius is at 54 times sales. Even CoreWeave, with a sales multiple of 12.5, feels a bit pricey considering its debt levels. Now, we’ve seen this before – stocks like Palantir and Nvidia were considered expensive a few years ago, but went on to perform incredibly well. However, realistically, I don’t expect the same level of returns from these highly valued stocks as I would from those currently offering better value.

It’s doubtful the Roundhill Generative AI & Technology ETF will deliver the high returns needed to turn a $10,000 investment into $1 million quickly. However, it can still be a worthwhile investment. For those wanting to benefit from the growing trend of generative AI without concentrating their money in just a few companies, this ETF offers an easy solution.

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2025-10-11 01:03