Alger 35 ETF (ATFV)

Overview

The Alger 35 ETF is an actively managed ETF that invests primarily in a concentrated portfolio of 35 U.S. equity securities. The fund seeks to achieve capital appreciation by investing in companies with strong growth potential, identified through Alger's proprietary research process. The investment strategy focuses on identifying secular growth themes and companies poised to benefit from them.

Reputation and Reliability

Alger Investments is a well-established asset management firm with a long history in the investment industry, known for its active management expertise. Their reputation is built on consistent investment performance and a client-centric approach.

Management Expertise

The ETF is managed by Alger's experienced investment team, who utilize a fundamental, research-driven approach. The team comprises seasoned portfolio managers and analysts with deep sector knowledge and a proven track record in identifying growth opportunities.

Goal

The primary investment goal of the Alger 35 ETF is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: The Alger 35 ETF is an actively managed fund, meaning it does not track a specific index. The investment strategy focuses on selecting individual U.S. equity securities based on Alger's fundamental research and outlook on secular growth trends.

Composition The ETF holds a concentrated portfolio of approximately 35 U.S. equity securities. These are typically large-cap to mid-cap growth stocks across various sectors.

Market Share: Information on the specific market share of the Alger 35 ETF within its niche is not publicly disclosed in a readily comparable format. As an actively managed, concentrated ETF, it occupies a specialized segment.

Total Net Assets (AUM): The Total Net Assets (AUM) for the Alger 35 ETF is subject to market fluctuations and is updated regularly. As of recent data, it is approximately $686.6 million.

Key Competitors

• WisdomTree U.S. Quality Growth Fund (QGRO)
• Invesco S&P 500 High Quality ETF (SPHQ)
• iShares MSCI USA Quality Factor ETF (QUAL)

Competitive Landscape

The competitive landscape for growth-oriented ETFs is robust, with numerous passive and active funds vying for investor capital. Alger 35 ETF's advantage lies in its active management and concentrated approach, potentially leading to alpha generation but also higher concentration risk. Disadvantages may include higher expense ratios compared to passive ETFs and the risk of underperformance if the manager's stock selections are inaccurate.

Historical Performance: Historical performance data for the Alger 35 ETF shows varied results. Over the past 1-year, 3-year, and 5-year periods, the ETF has exhibited fluctuating returns, reflecting the volatility inherent in growth-focused equity strategies. Specific figures require checking real-time data sources.

Benchmark Comparison: As an actively managed fund, the Alger 35 ETF is typically benchmarked against a broad market index like the S&P 500 or a growth-focused index. Its performance relative to these benchmarks indicates whether the active management strategy has added value or detracted from returns.

Expense Ratio: The expense ratio for the Alger 35 ETF is 0.65%.

Average Trading Volume

The ETF's average trading volume is approximately 14,000 shares per day, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for the Alger 35 ETF is typically around 0.08%, reflecting reasonable trading costs for investors.

Market Environment Factors

The Alger 35 ETF is influenced by factors affecting the U.S. equity market, particularly the technology and growth sectors. Economic indicators like inflation, interest rate policies, and consumer spending, as well as sector-specific growth prospects and competitive pressures, significantly impact its performance.

Growth Trajectory

The growth trajectory of the Alger 35 ETF is tied to the success of its active management strategy in identifying and capitalizing on secular growth trends. Changes in strategy are typically driven by evolving market conditions and the portfolio management team's insights, which can lead to shifts in sector allocation and individual holdings.

Competitive Edge

The Alger 35 ETF's competitive edge stems from its active management approach, leveraging Alger's dedicated research team to identify high-conviction growth stocks. Its concentrated portfolio allows for significant exposure to its best ideas, potentially leading to outperformance. The focus on secular growth themes provides a differentiated strategy compared to broader market or passive ETFs.

Volatility

The Alger 35 ETF exhibits historical volatility that is generally higher than broad market indices, consistent with its focus on growth stocks. This volatility is a reflection of the higher-risk, higher-reward nature of its investment strategy.

Market Risk

Market risk for the Alger 35 ETF includes the inherent risks of equity investments, such as economic downturns, geopolitical events, and changes in investor sentiment. Specific to its growth focus, it is also susceptible to risks associated with rapid technological change, regulatory shifts, and intense competition within its chosen sectors.

Ideal Investor Profile

The ideal investor for the Alger 35 ETF is one seeking long-term capital appreciation and who has a higher tolerance for risk and volatility. This investor believes in the active management's ability to identify and exploit growth opportunities and is comfortable with a concentrated portfolio.

Market Risk

This ETF is best suited for long-term investors who are seeking growth and are comfortable with the potential for higher volatility. It is less suitable for risk-averse investors or those seeking stable, income-generating investments.

The Alger 35 ETF is an actively managed fund focused on U.S. equities with the goal of long-term capital appreciation. It invests in a concentrated portfolio of approximately 35 growth stocks, driven by Alger's proprietary research. While offering potential for outperformance, it comes with higher volatility and concentration risk compared to broad-market ETFs. Its active management and niche focus make it suitable for growth-oriented, risk-tolerant investors with a long-term horizon.

Data Sources:

• Alger Investments Official Website
• Financial Data Providers (e.g., Morningstar, ETFdb.com)

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. ETF performance can vary significantly, and 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.