Alger 35 ETF (ATFV)

Overview

The Alger 35 ETF focuses on investing in the 35 companies with the highest conviction ratings from Alger's research team. It seeks capital appreciation through investments in primarily U.S. growth stocks. The fund aims to outperform traditional growth benchmarks by leveraging Alger's bottom-up research and stock selection process.

Reputation and Reliability

Alger has a long-standing reputation as a growth-oriented investment manager with a history of fundamental research. While past performance does not guarantee future results, Alger's consistent focus on growth investing enhances its reliability in this area.

Management Expertise

Alger's management team has extensive experience in growth stock investing, with analysts dedicated to specific sectors and industries. This expertise allows them to identify companies with high growth potential.

Goal

To seek long-term capital appreciation by investing in a focused portfolio of growth stocks.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. Instead, it uses Alger's internal research to identify 35 stocks with the highest conviction ratings, emphasizing companies with strong growth potential.

Composition The ETF primarily holds U.S. equity securities. The fund focuses on growth companies across various sectors, weighted based on conviction levels.

Market Share: The Alger 35 ETF holds a small market share within the broader growth ETF market.

Total Net Assets (AUM): 99811608.68

Key Competitors

• Invesco QQQ Trust (QQQ)
• iShares Russell 1000 Growth ETF (IWF)
• Vanguard Growth ETF (VUG)

Competitive Landscape

The growth ETF market is highly competitive, with larger, well-established ETFs dominating market share. Alger 35 ETF differentiates itself through its concentrated portfolio and focus on highest conviction stocks, offering potentially higher alpha but also increased concentration risk. Competitors offer broader diversification but may lack the concentrated growth potential of Alger 35.

Historical Performance: Historical performance data should be obtained from financial data providers. Review the ETFu2019s performance over different time periods (e.g., 1-year, 3-year, 5-year) to understand its track record.

Benchmark Comparison: Compare the ETFu2019s performance to growth benchmarks, such as the Russell 1000 Growth Index, to gauge its effectiveness. Analyze risk-adjusted returns.

Expense Ratio: 0.6

Average Trading Volume

The ETF exhibits moderate liquidity, with an average trading volume that allows for relatively easy entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting reasonable liquidity but can widen during periods of market volatility.

Market Environment Factors

The Alger 35 ETF is sensitive to economic growth, interest rate movements, and technological advancements. Favorable economic conditions and strong earnings growth typically benefit growth stocks.

Growth Trajectory

The growth trajectory is dependent on the success of Alger's stock-picking strategy and the overall performance of growth stocks. Changes in holdings reflect the firm's evolving conviction levels.

Competitive Edge

Alger 35 ETF's competitive edge lies in its high-conviction, concentrated portfolio, which is based on Alger's extensive fundamental research. By focusing on a select few companies identified as having the highest growth potential, the ETF offers investors the opportunity to outperform broader growth benchmarks. The active management approach allows for flexibility in responding to market changes and capitalizing on emerging trends. This concentrated approach, however, carries higher risk compared to more diversified growth ETFs.

Volatility

The ETF is expected to exhibit higher volatility than broader market indices due to its concentrated portfolio and focus on growth stocks.

Market Risk

Specific risks include market risk (general decline in stock prices), concentration risk (poor performance of a few holdings), and sector risk (underperformance of specific industries).

Ideal Investor Profile

The ideal investor is one seeking capital appreciation, willing to tolerate higher volatility, and believes in the long-term growth potential of concentrated growth stocks. Suitable for investors with a moderate to high risk tolerance.

Market Risk

The ETF is best suited for long-term investors who can withstand market fluctuations. It is less suitable for risk-averse investors or those seeking stable income.

The Alger 35 ETF offers a concentrated approach to growth stock investing, targeting companies with high-conviction ratings from Alger's research team. This focused strategy has the potential to deliver higher returns but also carries greater risk due to its limited number of holdings. The ETF is best suited for investors with a long-term horizon and a higher risk tolerance. It differentiates itself from broader growth ETFs by its active management and emphasis on concentrated growth.

Data Sources:

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

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.