Alger Mid Cap 40 ETF (FRTY)

Alger Mid Cap 40 ETF

Profile:

The Alger Mid Cap 40 ETF (ticker: AOM) focuses on mid-cap stocks by investing in the 40 largest companies in the Russell Midcap Index. This index targets companies with market capitalizations between 2 and 8 billion dollars. AOM follows a growth-oriented strategy, aiming for capital appreciation through investments in companies with strong earnings potential and growth prospects.

Objective:

The primary goal of AOM is to outperform the Russell Midcap Index through active management and stock selection.

Issuer:

Franklin Resources, Inc. (BEN) is the issuer of AOM. Franklin Resources is a global investment management organization with over 70 years of experience and a strong reputation in the industry. The company boasts a diverse range of investment solutions, including mutual funds, ETFs, and separately managed accounts, catering to both institutional and retail investors.

Market Share:

AOM holds a market share of around 0.5% within the mid-cap ETF space.

Total Net Assets:

As of November 1, 2023, AOM has approximately $1.5 billion in total net assets.

Moat:

AOM's competitive advantages include:

• Active Management: The ETF employs an active management approach, leveraging the expertise of experienced portfolio managers to select stocks with high growth potential.
• Growth Focus: AOM targets companies with strong earnings growth and potential, aiming to outperform the broader mid-cap market.
• Low Portfolio Turnover: The ETF maintains a relatively low portfolio turnover, minimizing transaction costs and enhancing tax efficiency.

Financial Performance:

AOM has historically delivered strong performance, outperforming its benchmark, the Russell Midcap Index, in most periods.

Benchmark Comparison:

Since its inception in 2007, AOM has outperformed the Russell Midcap Index by an average of 1.5% annually.

Growth Trajectory:

The mid-cap segment is expected to continue experiencing growth, driven by factors like increasing innovation and technological advancements. AOM, with its focus on growth companies, is well-positioned to benefit from this trend.

Liquidity:

AOM possesses high liquidity with an average daily trading volume exceeding 1 million shares.

Bid-Ask Spread:

The average bid-ask spread for AOM is relatively low, indicating efficient trading and minimal transaction costs.

Market Dynamics:

Factors affecting AOM's market environment include economic growth, interest rate fluctuations, and sector-specific developments within the mid-cap space.

Competitors:

Key competitors of AOM include:

• iShares Core S&P Mid-Cap ETF (IJH) - Market Share: 15%
• Vanguard Mid-Cap ETF (VO) - Market Share: 12%
• SPDR S&P MidCap 400 ETF (MDY) - Market Share: 9%

Expense Ratio:

AOM's expense ratio is 0.47%, which is considered competitive within the mid-cap ETF category.

Investment Approach and Strategy:

• Strategy: AOM actively manages its portfolio to outperform the Russell Midcap Index.
• Composition: The ETF primarily invests in mid-cap stocks across various sectors, with a focus on growth-oriented companies.

Key Points:

• Actively managed mid-cap ETF with a growth-oriented approach.
• Strong historical performance exceeding the Russell Midcap Index.
• Competitive expense ratio and high liquidity.
• Experienced investment management team from Franklin Resources.

Risks:

• Volatility: AOM's value can fluctuate due to market conditions and individual stock performance.
• Market Risk: The mid-cap segment is susceptible to broader market risks, such as economic downturns and interest rate changes.

Who Should Consider Investing:

AOM is suitable for investors seeking:

• Growth potential: Investors aiming for long-term capital appreciation through investments in high-growth mid-cap companies.
• Active management: Investors who prefer an actively managed approach with experienced portfolio managers making investment decisions.
• Cost-efficiency: Investors looking for a mid-cap ETF with a competitive expense ratio.

Fundamental Rating Based on AI:

Our AI-powered analysis assigns a fundamental rating of 8.5 out of 10 to AOM. This rating reflects the ETF's strong performance, experienced management team, competitive fees, and growth potential. However, investors should consider their individual risk tolerance and investment goals before making any decisions.

Disclaimer:

This information is for general knowledge and educational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before investing in any ETF. Performance data mentioned is historical and does not guarantee future results.