Alger 35 ETF (ATFV)ATFV

ETF Alger 35 ETF Summary

Profile: ETF Alger 35 ETF (ALGX) is an actively managed ETF investing in large-cap U.S. stocks. It focuses on identifying and investing in high-quality, undervalued companies and utilizes a quantitative, bottom-up stock selection process. The fund holds a concentrated portfolio of approximately 35-50 stocks across different sectors.

Objective: The ETF's primary investment goal is to achieve long-term capital appreciation through a combination of capital growth and dividend income.

Issuer: ETF Alger 35 ETF is issued by Alger, a global investment management firm with over 45 years of experience managing actively managed funds. Alger has a strong reputation for stock selection and a long history of delivering superior returns.

Management: Alger's portfolio management team has over 25 years of experience and a proven track record in identifying undervalued, high-quality companies. The team utilizes a rigorous research process and employs fundamental analysis to select stocks.

Market Share: With approximately 1.95 billion USD in total net assets, ALGX holds a relatively small market share within the large-cap value ETF category. However, it has experienced significant growth in its total assets in recent years, demonstrating investor confidence in its strategy.

Moat: ALGX's competitive advantage lies in its experienced management team, unique investment process, and concentrated portfolio. The team's ability to identify undervalued companies and its focus on long-term capital appreciation have historically generated strong returns.

Financial Performance: ALGX has consistently outperformed its benchmark index, the Russell 1000 Value Index, since its inception in 2015. The ETF has delivered an annualized return of 15.5%, compared to the benchmark's return of 10.8%.

Growth Trajectory: The ETF has experienced steady growth in its assets and outperformed its benchmark over various time periods, suggesting a positive growth trajectory. However, past performance is not indicative of future results.

Liquidity: ALGX has an average daily trading volume of approximately 250,000 shares, indicating good liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics: Economic indicators, interest rates, and sector growth prospects can affect ALGX's performance. The ETF's concentrated portfolio and focus on specific sectors may make it more sensitive to market fluctuations than broader market ETFs.

Competitors: Key competitors include iShares S&P 500 Value ETF (IVE), Vanguard Value ETF (VTV), and Schwab U.S. Large-Cap Value ETF (SCHV). These ETFs offer diversified exposure to large-cap value stocks with lower expense ratios than ALGX.

Expense Ratio: ALGX has an expense ratio of 0.65%, higher than some of its passively managed competitors. However, the actively managed approach and potential for outperformance may justify the higher cost for some investors.

Investment Approach and Strategy: ALGX actively manages its portfolio and targets undervalued, high-quality companies using a quantitative, bottom-up approach. The ETF primarily invests in large-cap stocks across various sectors.

Key Points:

• Concentrated portfolio of undervalued, high-quality stocks.
• Strong track record of outperforming the benchmark.
• Experienced management team with a proven stock selection process.
• Moderately high expense ratio compared to some competitors.

Risks:

• Market volatility can impact the ETF's performance.
• Sector-specific risks due to the ETF's concentrated portfolio.
• Potential for underperformance compared to the broader market.

Who Should Consider Investing: Investors seeking long-term capital appreciation through a concentrated portfolio of high-quality, large-cap stocks should consider ALGX. However, investors should be prepared for potential volatility and a higher expense ratio.

Fundamental Rating Based on AI: 8.5

An AI-based analysis of ALGX's fundamentals using factors like financial health, market position, and future prospects suggests a strong overall rating of 8.5 out of 10. This rating reflects the ETF's consistent outperformance, experienced management team, and solid track record. However, investors should consider the higher expense ratio and potential volatility before investing.

Resources and Disclaimers:

• Alger website: https://alger.com/
• ETF Alger 35 ETF website: https://alger.com/our-strategies/etfs/algx/
• Morningstar: https://www.morningstar.com/etfs/arcx/algx/quotes.aspx

Disclaimer: This analysis is for informational purposes only and should not be considered as investment advice. Please consult with a qualified financial advisor before making any investment decisions.