Alger AI Enablers & Adopters ETF

ALAI

Market cap $294M

Last year's market surge wasn't built on hype. New research from Alger shows that AI spending and the accompanying infrastructure buildout drove corporate earnings higher, with fundamentals doing the heavy lifting rather than investor sentiment alone.

Investors are looking beyond semiconductor makers as companies across industries deploy artificial intelligence (AI) to transform their operations and products. Generative AI reached 50% of U.S. households in just three years, a speed that dwarfs every prior general-purpose technology, according to Alger's Winter 2026 Capital Markets presentation.

During the fourth quarter of 2025, the largest portfolio sector weightings were Information Technology and Communication Services. The largest sector overweight was Information Technology and the largest sector underweight was Financials. The Information Technology and Utilities sectors contributed to relative performance while Health Care and Industrials were among sectors that detracted from relative performance.

Major investments in AI infrastructure have some investors worried about corporate balance sheets, but new research from Alger shows today's buildout looks nothing like the debt-fueled telecom boom of the late 1990s.

We could very well be entering an unprecedented era of U.S. domestic business spending and investment in the years to come. Here's how.

The United States is preparing for an artificial intelligence (AI) infrastructure buildout that rivals the scale of World War II mobilization. Alger, a pioneer in growth-equity investing, predicts AI-related spending could reach 5.6% of U.S. gross domestic product (GDP) by the end of the decade.

Although OpenAI is not available for public investment, the actively managed Alger AI Enablers & Adopters ETF (ALAI), seeks to invest in companies across the AI ecosystem, including businesses that may help enable and support leading artificial intelligence technologies.

Artificial intelligence (AI) systems are entering a new phase that requires 100 times more computing power than traditional AI queries, according to research from Alger. Reasoning models like OpenAI's o1 and o3 break down complex problems into smaller steps and refine answers before responding, creating what Nvidia Corp.

Some of the world's largest tech companies are continuing to showcase why the AI growth story is here to stay.  Earlier in October, Google announced it would begin efforts to construct its first artificial intelligence hub in India.

The extent of investments already needed to build and support the AI infrastructure for today's economy may seem impressive. However, this spending may very well only be the beginning.