Is the Term “Chosen People” Racist?

How can we claim that we were chosen by God to be his special nation without saying it’s a racist idea? Conceptually how is this any different from Hitler saying the Germans are the pure race or any other race or religion claiming they are the “special ones”. Granted we are not out there murdering those who don’t believe as we do, however it seems impossible to claim that we don’t see ourselves as better.
I never felt comfortable with this concept and never got a satisfactory answer.