Roundhill's
research estimates suggest $120+ billion total addressable market
for Generative AI enterprise software
NEW
YORK, May 18, 2023 /PRNewswire/ -- Roundhill
Investments, an ETF sponsor focused on innovative financial
products, is pleased to announce the launch of the Roundhill
Generative AI & Technology ETF (NYSE Arca: CHAT), which begins
trading today on the NYSE Arca. CHAT provides investors exposure to
companies at the forefront of artificial intelligence technology,
with a focus on generative AI.
Roundhill Investments launches $CHAT, the
first-ever Generative AI ETF.
Dave Mazza, Chief Strategy
Officer at Roundhill Investments, explains, "Generative AI
represents the next frontier of artificial intelligence technology,
offering the potential to revolutionize industries such as
entertainment, healthcare, and more. With CHAT, investors can gain
exposure to this rapidly-evolving field, potentially benefiting
from what we believe will be the exponential growth of generative
AI technology."
Unlike other technological megatrends, generative AI has already
begun to have significant real-world impact. OpenAI's ChatGPT has
become the fastest application ever to reach 100 million users*,
and its customers are already integrating its technology to improve
their everyday lives for everything from creative writing to coding
software.
Our proprietary research assigns a total addressable
market of ~$120 billion to enterprise
generative AI software. Meanwhile, Goldman Sachs research suggests
artificial intelligence could drive $7
trillion in global economic growth over the next seven years
as a result of accelerated productivity growth.
Generative AI is a type of artificial intelligence technology
that uses neural networks to generate new data that is similar in
structure and format to existing data. Unlike other AI techniques
that use existing data to make predictions or classifications,
generative AI can create entirely new data that is original and
unique. This is accomplished through the use of complex algorithms
that learn to recognize patterns and relationships within large
datasets, allowing the AI system to generate new content or ideas
that are similar in style or format.
The Roundhill Generative AI ETF (CHAT) is an actively-managed
ETF that is designed to provide exposure to companies around the
globe involved in generative AI and related technologies.
CHAT's top holdings at launch include: Nvidia (7.8% weight),
Microsoft (7.6% weight), Alphabet (7.2% weight), Baidu (5.4%
weight), iFLYTEK (5.0% weight), Adobe (4.9% weight), AMD (4.9%
weight), SenseTime Group (4.7% weight), C3.ai (4.5% weight) and
Salesforce (NYSE: CRM - 3.6% weight).
"We had been hearing from investors for months that they were
interested in investing in generative AI, but were frustrated by
the lack of ETF options available to them. Roundhill is excited to be able to meet market
demand with CHAT, an ETF comprised of the companies pioneering what
we believe to be one of the fastest growing technologies in
history," added Mazza.
For more information on CHAT, please visit
https://www.roundhillinvestments.com/etf/chat.
About Roundhill Investments:
Roundhill Investments is a registered investment adviser focused
on offering innovative financial products designed to offer
exposure to investment themes that appeal to the next generation of
investors. To learn more about the company, please visit
roundhillinvestments.com.
*Source: Goldman Sachs Investment Research Report 3/26/2023
Investors should consider the investment objectives, risk,
charges, and expenses carefully before investing. For a prospectus
or summary prospectus with this and other information about the
CHAT ETF please call 1-855-561-5728 or visit the website
http://www.roundhillinvestments.com/etf/chat. Read the prospectus
and summary prospectus carefully before investing. Investing
involves risk. Principal loss is possible.
The Fund expects to have concentrated (i.e., invest more than
25% of its net assets) investment exposure in one or more of the
Technology Industries at any given time, which may vary over time.
Further, the Fund expects to obtain such investment exposure by
transacting primarily with a limited number of financial
intermediaries conducting business in the same industry or group of
related industries. As a result, the Fund is more vulnerable to
adverse market, economic, regulatory, political or other
developments affecting those industries or groups of related
industries than a fund that invests its assets in a more
diversified manner. The value of stocks of information technology
companies and companies that rely heavily on technology is
particularly vulnerable to rapid changes in technology product
cycles. Please see the summary and full prospectuses for a more
complete description of these and other risks of the Fund.
Artificial Intelligence Company Risk. Companies
involved in, or exposed to, artificial intelligence related
businesses may have limited product lines, markets, financial
resources or personnel.
Technology Sector Risk. The Fund will invest
substantially in companies in the information technology sector,
and therefore the performance of the Fund could be negatively
impacted by events affecting this sector.
Foreign Securities Risk. Investments in securities or
other instruments of non-U.S. issuers involve certain risks not
involved in domestic investments and may experience more rapid and
extreme changes in value than investments in securities of U.S.
companies.
Non-Diversification Risk. Because the Fund is
"non-diversified," it may invest a greater percentage of its assets
in the securities of a single issuer or a smaller number of issuers
than if it was a diversified fund.
Concentration Risk. The Fund will be concentrated in
securities of issuers having their principal business activities in
the technology group of industries.
CHAT is distributed by Foreside Fund Services, LLC.
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SOURCE Roundhill Investments