Alger 35 ETF (ATFV)

Overview

The Alger 35 ETF (ATFY) seeks long-term capital appreciation by investing in the 35 highest-conviction growth stock ideas from Alger's investment team. It focuses on companies demonstrating dynamic growth and disruptive innovation across various sectors.

Reputation and Reliability

Fred Alger Management, LLC has a long-standing history in growth investing, known for its research-driven approach. It is a reputable and reliable issuer with a focus on active management.

Management Expertise

The management team at Fred Alger Management has extensive experience in growth stock investing, with a deep understanding of market trends and company fundamentals.

Goal

The primary investment goal of ATFY is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: ATFY employs an active management strategy, selecting 35 stocks based on Alger's internal research and conviction in their growth potential.

Composition The ETF predominantly holds US-listed growth stocks across various sectors, selected based on their high growth potential and innovative business models.

Market Share: ATFY's market share is relatively small compared to established broad-market ETFs but represents a significant portion of the actively managed growth ETF segment.

Total Net Assets (AUM): 67310887

Key Competitors

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

Competitive Landscape

The actively managed growth ETF space is competitive, with ARKK being a dominant player. ATFY differentiates itself through its concentrated portfolio of 35 high-conviction ideas. Compared to broader growth ETFs like IWF and VUG, ATFY offers a more focused, potentially higher-growth, but also higher-risk, approach. Its smaller AUM can be an advantage in terms of agility, but a disadvantage in terms of visibility.

Historical Performance: Historical performance data is available from the fund's inception date and is subject to market volatility. Please consult the fund's website or a financial data provider for the most up-to-date information.

Benchmark Comparison: The ETF's performance should be compared to growth-oriented benchmarks such as the Russell 1000 Growth Index or similar actively managed growth funds.

Expense Ratio: 0.75

Average Trading Volume

ATFY's average trading volume indicates moderate liquidity, which is sufficient for most retail investors, though larger institutional trades may experience some price impact.

Bid-Ask Spread

ATFY's bid-ask spread is generally reasonable, reflecting its relatively low trading volume, but can widen during periods of market volatility.

Market Environment Factors

ATFY's performance is influenced by factors such as interest rates, inflation, technology sector growth, and investor sentiment towards growth stocks.

Growth Trajectory

The growth trajectory depends on the success of the ETF's stock selection and the overall market environment. Changes to strategy involve periodic rebalancing and adjustments to the portfolio's composition based on Alger's latest research.

Competitive Edge

ATFY's competitive edge lies in its concentrated portfolio of 35 high-conviction growth stocks, selected by Alger's experienced investment team. The ETF benefits from Alger's research-driven approach and deep understanding of growth companies. This focused strategy aims to deliver potentially higher returns compared to broader growth ETFs. The firm's expertise in identifying and analyzing growth opportunities gives it an edge in a competitive market. The strategy emphasizes dynamic, disruptive companies that can outpace their peers.

Volatility

ATFY, being focused on growth stocks, is expected to exhibit higher volatility compared to broad market ETFs or value-oriented ETFs.

Market Risk

The ETF is subject to market risk, particularly related to growth stocks, technology stocks, and sectors experiencing rapid change. Specific company risks also apply to the individual holdings within the portfolio.

Ideal Investor Profile

The ideal investor for ATFY is someone seeking long-term capital appreciation, has a high risk tolerance, and understands the potential for volatility associated with growth stock investing.

Market Risk

ATFY is best suited for long-term investors seeking exposure to high-growth companies and willing to accept higher levels of risk. It may not be suitable for risk-averse investors or those seeking stable income.

ATFY offers a concentrated portfolio of 35 high-conviction growth stocks managed by Fred Alger Management, targeting long-term capital appreciation. The ETF is designed for investors with a high-risk tolerance seeking exposure to innovative and disruptive companies. Its performance is subject to market volatility and depends on the success of Alger's stock selection process. While it offers the potential for high returns, it comes with inherent risks associated with growth stock investing, but differentiates itself with the managers strong conviction.

Data Sources:

• ETF.com
• Morningstar
• Fund Fact Sheet
• Company Website

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Data is based on available information and may be subject to change.