
Ah, artificial intelligence. The shiny new toy that the stock market just can’t seem to get enough of. And now, we find ourselves staring at two very different ways to invest in it. On one hand, there’s the Technology Select Sector SPDR Fund (XLK +0.10%), as reliable and unexciting as your grandfather’s wristwatch. On the other, we have the Roundhill Generative AI & Technology ETF (CHAT +1.01%), the young and restless upstart, thrillingly unstable, the rebel in the world of ETFs.
Let’s talk numbers, because what else really matters in this world, right? The Technology Select Sector SPDR Fund is, to be blunt, your old faithful friend. It’s got a low expense ratio of 0.08%, a track record stretching back nearly 30 years, and, yes, a collection of tech stocks like Nvidia and Apple, which seem to have been around since the dawn of time. But this isn’t a place for exciting new ventures. This fund tracks the S&P 500 tech sector, and with it, the stability of a phone number you’ve had for decades.
A basket of assets, traded on exchanges, that makes it easier to invest in a group of stocks or bonds.
Expense ratio:
The annual fee, as a percentage of assets, that funds charge investors for the privilege of being managed.
Actively managed fund:
A fund where human beings pick investments, rather than tracking an index.
Index:
A benchmark group of stocks or securities that represent a market or sector.
Beta:
A measure of how much a fund’s price moves in relation to the S&P 500.
AUM (Assets Under Management):
The total value of assets managed by a fund.
Max drawdown:
The worst period of loss from a peak value to its lowest point.
Sector concentration:
The degree to which a fund is invested in a particular industry or sector.
ESG screen:
A filter that excludes investments that don’t meet certain environmental, social, and governance criteria.
Liquidity:
How easy it is to buy or sell an asset without affecting its price.
And that’s that. Another day, another ETF. 📉
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2025-11-02 17:02