Alger Mid Cap 40 ETF (FRTY)

Overview

The Alger Mid Cap 40 ETF (FRTY) is a concentrated, actively managed fund focusing on approximately 40 of the highest-conviction mid-cap growth stocks selected by Alger investment professionals. The ETF aims to deliver long-term capital appreciation by investing primarily in U.S. companies.

Reputation and Reliability

Alger has a long history in growth investing, known for its research-driven approach. Their reputation is generally strong, reflecting their focus on growth strategies.

Management Expertise

Alger's management team has extensive experience in growth stock investing, employing fundamental analysis to identify companies with strong earnings growth potential.

Goal

The primary goal of the Alger Mid Cap 40 ETF is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF uses an active management strategy, selecting approximately 40 mid-cap growth stocks based on Alger's fundamental research and high-conviction investment ideas.

Composition The ETF primarily holds common stocks of U.S. mid-cap companies.

Market Share: Data on FRTYu2019s specific market share is not readily available due to the actively managed nature and specific focus on mid-cap growth.

Total Net Assets (AUM): The Total Net Assets of Alger Mid Cap 40 ETF (FRTY) is around $56 Million USD

Key Competitors

• IWR (iShares Russell Mid-Cap ETF)
• IJH (iShares Core S&P Mid-Cap ETF)
• VO (Vanguard Mid-Cap ETF)

Competitive Landscape

The mid-cap ETF market is highly competitive. FRTY differentiates itself through its concentrated, actively managed approach, potentially offering higher returns but also carrying higher risk compared to passively managed, diversified competitors like IWR, IJH, and VO. These competitors typically offer broader market exposure and lower expense ratios.

Historical Performance: Historical financial performance data should be sourced from official fund documentation and third-party financial data providers.

Benchmark Comparison: Benchmark comparison should be against a relevant mid-cap index, such as the Russell Midcap Growth Index or the S&P MidCap 400 Index.

Expense Ratio: The expense ratio for FRTY is 0.85%.

Average Trading Volume

The average trading volume of FRTY should be sourced from official fund documentation and third-party financial data providers to assess its liquidity.

Bid-Ask Spread

Details on the bid-ask spread of FRTY should be sourced from official fund documentation and third-party financial data providers to understand the cost of trading the ETF.

Market Environment Factors

Economic growth, interest rate changes, and sector-specific trends impact FRTY, as the fund invests in mid-cap companies sensitive to economic cycles.

Growth Trajectory

FRTY's growth trajectory depends on the ability of Alger's investment team to identify and select high-growth mid-cap companies. Changes to strategy and holdings are communicated through fund disclosures.

Competitive Edge

FRTY's competitive advantage lies in its active management strategy and concentrated portfolio of approximately 40 stocks. This approach allows for potentially higher alpha generation compared to passively managed funds. The fund's investment team employs rigorous fundamental analysis to identify mid-cap companies with strong growth prospects. This focused approach, however, also introduces higher stock-specific risk.

Volatility

Volatility data should be sourced from official fund documentation and third-party financial data providers. FRTY's concentrated portfolio may exhibit higher volatility compared to broadly diversified mid-cap ETFs.

Market Risk

FRTY is exposed to market risk as its underlying assets are subject to fluctuations based on overall market conditions and investor sentiment. Specific risks include economic downturns, industry-specific challenges, and company-specific factors.

Ideal Investor Profile

The ideal investor for FRTY is someone seeking capital appreciation through active management and is comfortable with higher risk and potential volatility associated with a concentrated portfolio.

Market Risk

FRTY is best suited for long-term investors with a higher risk tolerance who believe in active management and are seeking potential outperformance compared to passive mid-cap strategies.

The Alger Mid Cap 40 ETF (FRTY) is an actively managed fund that focuses on approximately 40 high-conviction mid-cap growth stocks. Its concentrated portfolio aims for long-term capital appreciation, but it also entails higher risk compared to diversified ETFs. Investors seeking potential outperformance and comfortable with volatility may find FRTY suitable. However, its higher expense ratio and focused approach should be carefully considered alongside its potential rewards.

Data Sources:

• alger.com
• etf.com
• Morningstar
• SEC filings

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on your own research and risk tolerance. Past performance is not indicative of future results.