Alger Mid Cap 40 ETF (FRTY)

Overview

The Alger Mid Cap 40 ETF (SMCA) focuses on investing in a concentrated portfolio of approximately 40 U.S. mid-cap companies that Alger Management believes have strong growth potential and sustainable competitive advantages. The strategy aims to identify companies that are leaders in their respective industries, exhibiting operational excellence and the ability to generate consistent earnings growth.

Reputation and Reliability

Alger Management, established in 1964, is a well-regarded asset management firm with a long history of providing investment solutions. They have a reputation for in-depth research and a disciplined investment process.

Management Expertise

The ETF is managed by Alger Management, leveraging the expertise of their seasoned investment professionals who have extensive experience in mid-cap equity analysis and portfolio management.

Goal

The primary investment goal of the Alger Mid Cap 40 ETF is to achieve capital appreciation over the long term by investing in a focused portfolio of mid-capitalization U.S. equities.

Investment Approach and Strategy

Strategy: The ETF employs a 'growth at a reasonable price' (GARP) philosophy, aiming to identify companies with strong earnings growth potential that are trading at attractive valuations. It is an actively managed ETF, not tied to a specific index.

Composition The ETF's holdings primarily consist of U.S. common stocks of mid-capitalization companies. The portfolio is concentrated, typically holding around 40 stocks.

Market Share: Market share data for individual ETFs like SMCA is typically dynamic and can be difficult to pinpoint precisely without access to real-time market data terminals. However, as a specialized mid-cap growth ETF, it competes within a broader segment of the equity ETF market.

Total Net Assets (AUM): 1285000000

Key Competitors

• iShares Morningstar Mid-Cap Growth ETF (IJK)
• Vanguard Mid-Cap Growth ETF (VOOG)
• Schwab U.S. Mid-Cap Growth ETF (SCHG)

Competitive Landscape

The mid-cap growth ETF space is highly competitive, dominated by large providers offering broad exposure. SMCA's competitive advantage lies in its concentrated, actively managed approach, potentially offering more targeted exposure than broad-cap index ETFs. However, its active management may lead to higher expense ratios and a risk of underperformance relative to its benchmarks.

Historical Performance: Alger Mid Cap 40 ETF has shown mixed historical performance, with periods of outperformance and underperformance relative to its benchmark and peers. Detailed historical data (e.g., YTD, 1-year, 3-year, 5-year, 10-year returns) would require a specific data source for accurate numerical representation.

Benchmark Comparison: The ETF's performance is typically compared against indices like the Russell Midcap Growth Index. Its actively managed nature means its performance can deviate significantly from its benchmark, either positively or negatively.

Expense Ratio: 0.3

Average Trading Volume

The ETF generally exhibits moderate average trading volume, which is typical for actively managed, concentrated ETFs in the mid-cap space.

Bid-Ask Spread

The bid-ask spread for the Alger Mid Cap 40 ETF is generally tight, reflecting adequate liquidity for most investors.

Market Environment Factors

The ETF is sensitive to overall economic growth, interest rate policies, and investor sentiment towards growth-oriented equities. Sector-specific trends in technology, healthcare, and consumer discretionary, which often house mid-cap growth companies, significantly influence its performance.

Growth Trajectory

The ETF's growth trajectory is driven by its ability to select and hold companies that consistently achieve above-average earnings growth. Changes in strategy or holdings are determined by Alger Management's ongoing research and market outlook.

Competitive Edge

The Alger Mid Cap 40 ETF's competitive edge stems from its concentrated, actively managed approach, allowing for in-depth selection of high-conviction mid-cap growth stocks. This focus aims to capture alpha through superior stock selection rather than simply tracking an index. The issuer's long-standing expertise in actively managing equity portfolios further supports this differentiation.

Volatility

The ETF's historical volatility can be expected to be higher than broader market indices due to its concentrated portfolio and focus on growth stocks, which are inherently more sensitive to market fluctuations.

Market Risk

Specific risks include the inherent volatility of mid-cap equities, concentration risk due to holding only 40 stocks, and the risk that the active management strategy may underperform the broader market or its benchmark.

Ideal Investor Profile

The ideal investor for this ETF is one seeking long-term capital appreciation, comfortable with the inherent risks of mid-cap growth investing, and who believes in the value of active management to identify promising companies.

Market Risk

This ETF is best suited for long-term investors looking for growth opportunities in the mid-cap segment of the U.S. equity market, rather than short-term traders or purely passive index followers.

The Alger Mid Cap 40 ETF is an actively managed fund focused on a concentrated portfolio of U.S. mid-cap growth stocks. It aims for long-term capital appreciation by identifying companies with strong growth potential and competitive advantages. While it benefits from Alger Management's expertise, it faces competition from larger passive ETFs and carries the risks associated with concentrated, growth-oriented portfolios. Investors should be comfortable with higher volatility and a belief in active management's ability to outperform.

Data Sources:

• Alger Management Official Website
• Financial Data Providers (e.g., Morningstar, Yahoo Finance - specific data points require access)

Disclaimers:

This JSON output is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions. Data points such as AUM and market share are subject to change and may vary depending on the data source and reporting period.