Alger Mid Cap 40 ETF (FRTY)

Overview

The ETF seeks to provide capital appreciation by investing in a concentrated portfolio of approximately 40 U.S. mid-capitalization companies. The fund focuses on companies with attractive growth potential and strong financial characteristics, aiming for outperformance compared to broad mid-cap benchmarks. It employs an active management strategy.

Reputation and Reliability

Alger is a well-established investment management firm with a long history, known for its active management approach and focus on growth investing across various asset classes.

Management Expertise

The ETF is managed by a team of experienced portfolio managers at Alger, who leverage the firm's proprietary research and analysis to identify investment opportunities within the mid-cap space.

Goal

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

Investment Approach and Strategy

Strategy: The ETF Alger Mid Cap 40 ETF does not aim to track a specific index. Instead, it actively selects a concentrated portfolio of approximately 40 mid-cap U.S. equities.

Composition The ETF primarily holds common stocks of U.S. mid-capitalization companies, with a focus on those exhibiting strong growth potential and sound financial health.

Market Share: Information on the specific market share of ETF Alger Mid Cap 40 ETF within the broader mid-cap ETF sector is not readily available without access to proprietary market data terminals. However, it is considered a niche actively managed fund rather than a broad index tracker.

Total Net Assets (AUM): 480000000

Key Competitors

• iShares Core S&P Mid-Cap ETF (IJH)
• Vanguard Mid-Cap ETF (VO)
• SPDR Portfolio S&P 400 Mid Cap ETF (SPMD)

Competitive Landscape

The mid-cap ETF landscape is highly competitive, dominated by large, passively managed index-tracking ETFs that offer broad diversification and low expense ratios. Actively managed, concentrated ETFs like the Alger Mid Cap 40 ETF face the challenge of demonstrating consistent alpha generation. Its advantage lies in its focused approach and potential for higher returns if its stock selection is successful, but its disadvantage is a higher expense ratio and concentration risk compared to passive alternatives.

Historical Performance: As of recent data (specific dates vary and require current lookup), the ETF has demonstrated varied performance. Over the past year, it has shown [e.g., X% growth]. Over three and five-year periods, its performance has been [e.g., competitive/lagging] against its benchmark, reflecting the dynamic nature of mid-cap equities and active management outcomes. Specific numerical data requires up-to-date market feeds.

Benchmark Comparison: The ETF Alger Mid Cap 40 ETF aims to outperform the S&P MidCap 400 Index. Its performance relative to this benchmark has historically varied, with periods of outperformance and underperformance, a common characteristic of actively managed funds.

Expense Ratio: 0.78

Average Trading Volume

The average trading volume for the ETF Alger Mid Cap 40 ETF is approximately [insert numerical value, e.g., 50,000] shares per day, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for the ETF Alger Mid Cap 40 ETF typically ranges from [insert numerical value, e.g., 0.05%] to [insert numerical value, e.g., 0.15%], representing a reasonable cost for trading.

Market Environment Factors

The performance of the ETF is influenced by economic indicators such as GDP growth, inflation rates, interest rate policies, and sector-specific trends within technology, healthcare, and consumer discretionary, which are often prominent in mid-cap companies. Market volatility and investor sentiment towards growth-oriented equities also play a significant role.

Growth Trajectory

The ETF's growth trajectory is tied to the successful identification and investment in mid-cap companies that are poised for significant expansion. Changes in strategy would typically involve adjustments to sector allocations or a shift in the types of growth characteristics sought in underlying holdings, driven by evolving market conditions and research insights.

Competitive Edge

The ETF Alger Mid Cap 40 ETF's competitive edge lies in its concentrated, actively managed portfolio, focusing on a select group of approximately 40 mid-cap companies. This focused approach allows for deeper research and conviction in each holding. The management team's expertise in identifying companies with strong growth potential and sound financial fundamentals is a key differentiator. This strategy aims to generate alpha by capitalizing on specific opportunities within the dynamic mid-cap segment.

Volatility

The ETF Alger Mid Cap 40 ETF exhibits historical volatility that is generally in line with its benchmark and the broader mid-cap equity market. As a concentrated portfolio, individual stock performance can have a more significant impact on overall fund volatility compared to a more diversified ETF.

Market Risk

The primary market risks for ETF Alger Mid Cap 40 ETF include equity market risk, specifically the risk that the stock prices of its holdings will decline due to broader economic downturns or adverse market sentiment. Additionally, mid-cap companies can be more sensitive to economic cycles than large-cap companies, and sector-specific risks within its concentrated holdings can impact performance.

Ideal Investor Profile

The ideal investor for the ETF Alger Mid Cap 40 ETF is an individual seeking long-term capital appreciation, with a moderate to high risk tolerance, and a belief in the potential of actively managed mid-cap growth strategies. Investors should have a long-term investment horizon to allow the concentrated portfolio to perform and weather market fluctuations.

Market Risk

ETF Alger Mid Cap 40 ETF is best suited for long-term investors who are comfortable with the risks associated with mid-cap equities and active management. It is less suitable for short-term traders or those seeking broad, low-cost market exposure through passive index tracking.

The ETF Alger Mid Cap 40 ETF is an actively managed fund focused on achieving long-term capital appreciation through a concentrated portfolio of approximately 40 U.S. mid-cap growth companies. Managed by experienced professionals at Alger, it aims to outperform its benchmark by identifying high-potential businesses. While it offers the potential for alpha generation, investors should be aware of its higher expense ratio and concentration risk compared to passive ETFs. It is best suited for long-term investors with a moderate to high risk tolerance.

Data Sources:

• ETF Provider Websites (e.g., Alger)
• Financial Data Aggregators (e.g., Morningstar, Bloomberg - access may be restricted)
• SEC Filings (e.g., Prospectus)

Disclaimers:

This information is for informational purposes only and does not constitute investment advice. Historical performance is not indicative of future results. Data accuracy is subject to market fluctuations and the availability of up-to-date information. Investors should consult with a qualified financial advisor before making any investment decisions.