Alger 35 ETF (ATFV)

Alger 35 ETF (AAEC) Summary:

Profile:

Alger 35 ETF is actively managed and invests in a diversified portfolio of approximately 35-50 large-cap US stocks with opportunities for sustainable growth and high returns. It focuses on mid-cycle sectors and uses a bottom-up approach to stock selection.

Objective:

The ETF aims to achieve long-term capital appreciation through a diversified portfolio of US equities with strong potential for growth and shareholder value.

Issuer:

Alger Management, LLC: Established in 1964, Alger is a large independent investment management firm with a focus on active management and a long-term investment horizon. They have an experienced team of analysts and portfolio managers with a strong track record in stock selection.

Market Share:

Alger 35 ETF currently holds a small market share within the Large Cap Growth and Active Management categories.

Total Net Assets:

Approximately $646.9 million as of 10/26/2023.

Moat:

• Active Management: Alger leverages its experienced team and research capabilities to actively manage the portfolio and select stocks with high growth potential.
• Focus on Mid-Cycle Sectors: Targeting undervalued sectors with potential for turnaround and growth provides diversification and capital appreciation opportunities.
• Strong Performance Track Record: Alger has a history of generating competitive returns for investors across different market cycles.

Financial Performance:

Alger 35 ETF has outperformed its benchmark index (S&P 500) in recent years. Its annualized return since inception (07/16/2019) is 10.91%, compared to 9.72% for the S&P 500.

Growth Trajectory:

The ETF has experienced positive growth in recent years, with increasing AUM and investor interest.

Liquidity:

• Average Daily Trading Volume: Approximately 10,000 shares
• Bid-Ask Spread: Generally tight, indicating relatively low transaction costs.

Market Dynamics:

The ETF's performance is influenced by overall market conditions, economic factors, and individual stock performance within its portfolio.

Competitors:

• iShares Core S&P 500 Growth ETF (IVW)
• Vanguard Growth ETF (VUG)
• Invesco QQQ Trust Series 1 (QQQ)

Expense Ratio: 0.79%

Investment Approach:

• Strategy: Actively managed, aiming for long-term capital appreciation through stock selection.
• Composition: Large-cap US stocks across various mid-cycle sectors with high growth potential.

Key Points:

• Actively managed by experienced professionals.
• Focuses on undervalued mid-cycle sectors.
• Strong historical performance and potential for future growth.
• Relatively low expense ratio.

Risks:

• Market Risk: General market fluctuations can impact the ETF's performance.
• Active Management Risk: Portfolio performance depends on the manager's skill and market analysis.
• Sector-Specific Risk: Focus on specific sectors might lead to greater volatility compared to broader market ETFs.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through a diversified portfolio of high-growth potential stocks.
• Investors comfortable with active management and sector-specific focus.

Fundamental Rating Based on AI: 7.5/10

Alger 35 ETF displays solid fundamentals through its experienced management, sector-specific approach, and strong historical performance. However, the relatively small market share and active management risk require careful consideration.

Resources:

• Alger Management: https://alger.com/funds/aaec/
• AAEC Overview: https://www.etf.com/AAEC
• Morningstar AAEC Performance: https://www.morningstar.com/etfs/arcx/aaec/performance

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial professional before making any investment decisions.