Alger 35 ETF (ATFV)

Overview

The Alger 35 ETF (ATFV) focuses on investing in the 35 high-conviction growth companies from Alger's investment strategies. It aims to provide exposure to potentially high-growth companies while concentrating on a select number of holdings. The asset allocation primarily targets equity securities, with a growth-oriented investment strategy.

Reputation and Reliability

Alger is a well-established investment management firm with a long history of growth-oriented investing. They are known for their disciplined research process and focus on identifying companies with sustainable growth potential.

Management Expertise

The management team at Alger possesses extensive experience in growth equity investing. They employ a team-based approach, leveraging the expertise of multiple analysts and portfolio managers.

Goal

To seek long-term capital appreciation by investing in a concentrated portfolio of 35 high-conviction growth companies.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. Instead, it selects 35 companies based on Alger's fundamental research and growth forecasts.

Composition The ETF primarily holds common stocks of growth companies across various sectors.

Market Share: Data not available to provide an accurate market share.

Total Net Assets (AUM): 36.33e6

Key Competitors

• ARK Innovation ETF (ARKK)
• iShares Russell 1000 Growth ETF (IWF)
• Vanguard Growth ETF (VUG)

Competitive Landscape

The ETF industry is highly competitive, with numerous ETFs offering exposure to growth stocks. ATFV stands out with its concentrated approach, focusing on only 35 companies, potentially offering higher returns but also increased risk. Compared to broader growth ETFs like IWF or VUG, ATFV has a more focused portfolio, which can lead to greater volatility. ARKK is a disruptive innovation ETF that shares the characteristic of high growth, high conviction investment approach which often makes them a good comparable.

Historical Performance: Historical performance data should be gathered from financial data providers. Past performance does not guarantee future results.

Benchmark Comparison: The ETF's performance should be compared to growth-oriented benchmarks such as the Russell 1000 Growth Index or a customized benchmark based on its investment strategy.

Expense Ratio: 0.95

Average Trading Volume

The ETF's liquidity should be gauged based on its average trading volume, representing the number of shares traded daily and indicating ease of buying and selling.

Bid-Ask Spread

The bid-ask spread is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, revealing the cost of trading.

Market Environment Factors

Economic indicators such as GDP growth, interest rates, and inflation can impact the performance of growth stocks held by the ETF. Sector growth prospects, particularly in technology and consumer discretionary, are also crucial. Current market conditions, including investor sentiment and risk appetite, play a significant role.

Growth Trajectory

Monitor changes to the fund's strategy, holdings, and sector allocations to understand its growth trajectory. Reviewing their quarterly rebalance documents may be very helpful

Competitive Edge

Alger 35 ETF's concentrated portfolio of high-conviction growth stocks distinguishes it from broader growth ETFs. Its investment strategy reflects Alger's deep fundamental research and focus on companies with strong growth potential. The ETF benefits from Alger's experienced management team and disciplined investment process. The concentrated nature allows for potentially higher alpha generation if their stock picks outperform. However, this also leads to higher idiosyncratic risk compared to diversified indices.

Volatility

Assess the ETF's historical volatility by examining its standard deviation and beta. This information is readily available through financial data providers.

Market Risk

Specific risks associated with the ETF's underlying assets include market risk (general economic downturns), sector risk (concentration in growth sectors), and company-specific risk (performance of individual holdings).

Ideal Investor Profile

The ideal investor for the Alger 35 ETF is someone seeking high growth potential and willing to accept higher risk. It is suitable for investors with a long-term investment horizon and a strong tolerance for volatility.

Market Risk

The ETF is best suited for long-term investors with a high-risk tolerance rather than active traders or passive index followers.

The Alger 35 ETF offers concentrated exposure to high-conviction growth stocks selected by Alger's investment team, it aims to achieve long-term capital appreciation but comes with higher volatility. While it can potentially outperform broader growth ETFs due to its focused approach, investors should carefully consider the increased risk. The ETF is suitable for long-term investors with a high-risk tolerance who are seeking growth and confident in Alger's stock-picking abilities. Its concentrated approach distinguishes it in the crowded growth ETF market.

Data Sources:

• alger.com
• etf.com
• morningstar.com
• yahoofinance.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and after consulting with a qualified financial advisor. Market share and performance data may vary depending on the source and time period.