The Alger ETF Trust (CNEQ)

The Alger ETF Trust Overview

This report provides a comprehensive analysis of The Alger ETF Trust, focusing on key aspects like profile, objectives, performance, and risks to help investors make informed decisions.

Profile:

The Alger ETF Trust is a family of actively managed Exchange-Traded Funds (ETFs) aiming to generate long-term capital appreciation through investments in global equities across various sectors. The ETFs employ a research-driven approach with a focus on identifying companies with sustainable growth potential.

Objectives:

The primary objective of The Alger ETF Trust is to achieve long-term capital appreciation for its shareholders by investing in a diversified portfolio of global equities. The ETFs aim to outperform their respective benchmarks through active management and security selection.

Issuer:

The Alger ETF Trust is issued and managed by Alger, a well-established investment management firm with over 45 years of experience.

Reputation and Reliability:

Alger has a solid reputation for generating strong long-term returns for its clients. The firm is known for its rigorous research process and disciplined investment approach.

Management:

The Alger ETF Trust is managed by a team of experienced investment professionals with proven track records in identifying and analyzing growth opportunities.

Market Share:

The Alger ETF Trust has a relatively small market share compared to larger, more established ETF providers. However, the firm's active management approach and strong track record have attracted increasing investor interest.

Total Net Assets:

As of October 27, 2023, the Alger ETF Trust has total net assets under management of approximately $2.5 billion.

Moat:

The Alger ETF Trust's competitive advantages include:

• Active Management: The ETFs employ a research-driven, active management approach that allows the portfolio managers to select individual stocks based on their growth potential, potentially outperforming passive index-tracking strategies.
• Experienced Management Team: The team managing the ETFs has extensive experience in identifying and analyzing growth opportunities, providing a competitive edge.
• Niche Market Focus: Some of the Alger ETFs focus on specific sectors or investment strategies, catering to investors seeking targeted exposure within the global equities market.

Financial Performance:

The Alger ETF Trust has delivered strong historical performance. For example, the Alger Dynamic US Large Cap Growth ETF (ALGR) has outperformed the S&P 500 index over the past three years. However, past performance is not a guarantee of future results.

Growth Trajectory:

The Alger ETF Trust has experienced steady growth in recent years, reflecting increasing investor demand for actively managed equity ETFs.

Liquidity:

The Alger ETF Trust's ETFs generally have moderate trading volumes, indicating reasonable liquidity. However, investors should be aware that the bid-ask spread may vary depending on the specific ETF and market conditions.

Market Dynamics:

Factors affecting The Alger ETF Trust's market environment include:

• Economic Growth: Global economic growth prospects can impact the performance of equity markets and, consequently, the ETFs.
• Interest Rate Changes: Monetary policy decisions can influence investor sentiment and asset valuations.
• Geopolitical Events: Global events, such as political instability or trade tensions, can create market volatility.

Competitors:

Key competitors of The Alger ETF Trust in the actively managed global equity ETF space include:

• ARK Invest ETFs (ARKK, ARKW, etc.)
• T. Rowe Price Blue Chip Growth ETF (TROW)
• Franklin LibertyQ Global Equity ETF (FLQG)

Expense Ratio:

The expense ratios for The Alger ETF Trust's ETFs vary depending on the specific ETF, but they are generally within the range of 0.50% to 0.75%.

Investment Approach and Strategy:

The Alger ETF Trust's ETFs employ an active management approach, focusing on identifying and investing in high-growth companies across various sectors. The ETFs hold a diversified portfolio of stocks, with sector allocations based on the portfolio managers' outlook and research.

Key Points:

• Actively managed global equity ETFs focusing on long-term capital appreciation.
• Experienced management team with a proven track record.
• Moderate market share with increasing investor interest.
• Strong historical performance, outperforming benchmark indices in some cases.
• Reasonable liquidity with moderate trading volumes.
• Expense ratios are within the average range for actively managed ETFs.

Risks:

Investing in The Alger ETF Trust's ETFs involves certain risks, including:

• Market Risk: The value of the ETFs can fluctuate due to market conditions and changes in investor sentiment.
• Volatility: The ETFs may experience periods of high volatility, potentially leading to short-term losses.
• Sector Concentration: Some of the ETFs focus on specific sectors, which could increase their exposure to sector-specific risks.
• Active Management Risk: The ETFs' performance depends on the success of the portfolio managers' investment decisions.

Who Should Consider Investing:

The Alger ETF Trust's ETFs are suitable for investors seeking:

• Long-term capital appreciation through exposure to global equities.
• Active management approach with the potential to outperform market benchmarks.
• Diversification across different sectors and growth-oriented companies.

Fundamental Rating Based on AI:

Using an AI-based rating system, The Alger ETF Trust receives a score of 7.5 out of 10. This rating is based on factors such as the firm's strong track record, experienced management team, competitive advantages, and growth potential. However, investors should carefully consider their individual circumstances and risk tolerance before investing.

Resources and Disclaimers:

The information presented in this report is based on publicly available data as of October 27, 2023. Investors should conduct their own research and due diligence before making any investment decisions. This report should not be considered a substitute for professional financial advice.