2025 AI ETF Battlefield: Chip PI vs Generative AI PI, who won?

This year, AI-themed ETFs have collectively taken off, but the differences in returns are significant. Data shows that chip ETFs and generative AI ETFs have become the biggest winners.

Top 5 Performers This Year:

1. Roundhill Generative AI & Technology ETF (CHAT) — Increase of 49.5%
2. VanEck Chip ETF (SMH) — Increase of 42.5%
3. WisdomTree AI Innovation Fund (WTAI) — Increase of 34%
4. ROBO Global AI ETF (THNQ) — Up 31%
5. Global X AI & Technology ETF (AIQ) — Up 30.9%

But looking at the long term, the situation has reversed. Compared with the 3-year and 5-year returns, VanEck Chip ETF completely crushes:

• VanEck SMH: 222% over 3 years, 264% over 5 years → Long-term champion
• Roundhill CHAT: Established only for more than 2 years, lacking long-term data.
• S&P 500: 77.8% over 3 years, 102% over 5 years → Left far behind by the chip ETF

Why is the chip ETF more stable?

The TOP 5 of VanEck chip ETF are all hard currencies:

• Nvidia ( accounts for 18.3%): a 1070% increase over 3 years, the absolute king of computing power.
• TSMC ( accounts for 9.4%): the world's largest foundry, with stable GDP growth.
• Broadcom ( accounts for 8% ): The demand for AI chips has surged.
• AMD, Micron: Memory chips are in short supply.

The generative AI ETF (CHAT) may rise quickly in the short term, but the heavily invested tech giants are prone to fluctuations. Moreover, the management fees are high—CHAT charges 0.75%, while VanEck only charges 0.35%.

Core Observation:

This year marks the explosive year of generative AI, but “the pig on the wind” ultimately still relies on chips for sustenance. Companies like Nvidia and TSMC continue to have full orders for chips, with growth rates between 44% and 50%—this is real money business.

Want to copy AI's bottom? Instead of chasing hot ETFs, why not look at the long-term growth of the chip industry chain - this wave might really be different.