Alger AI Enablers & Adopters ETF

ALAI

Market cap $290M

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.

Back in the tail end of September, OpenAI made headlines once more when CEO Sam Altman made public an internal memo that outlined his ambitions for the company to possess 250 gigawatts of data center power capacity by 2033.

The Alger AI Enablers & Adopters ETF outperformed the S&P 500 Index during the third quarter of 2025. NVIDIA Corporation, Nebius Group N.V., and Talen Energy Corp were among the top contributors to performance. Netflix, Inc., Twilio, Inc., and Spotify Technology were among the top detractors from performance.

Every month, TMX VettaFi publishes hundreds of articles across our ETF-focused websites. Reviewing the pieces that capture our readers' attention provides a clear picture of prevailing advisor and investor sentiment.

The Alger AI Enablers & Adopters ETF offers concentrated exposure to high-growth companies driving AI infrastructure and application adoption. ALAI's portfolio is heavily weighted toward large-cap leaders like NVDA, MSFT, and AMZN, resulting in a higher valuation and increased concentration risk. The ETF has outperformed the S&P 500 and peer AI ETFs since inception, with a moderate 0.55% expense ratio and a growth-oriented strategy.

Corporate adoption of artificial intelligence is extending far beyond merely employing AI as an augmented search engine. The Alger team recently broke down how different firms in the U.S. are using artificial intelligence.

Corporations aren't the only major source that can drive capital expenditures (CapEx) spending on artificial intelligence infrastructure. Recent insights from Alger highlighted how spending from foreign governments could serve as a key accelerator for AI CapEx spending.

Even as some of the largest tech companies have continued to pour hundreds of billions of dollars into scaling up their AI infrastructure, some investors may be skeptical about AI's practical utility and broader adoption.