Alger AI Enablers & Adopters ETF

ALAI

Market cap $192M

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.

The corporate enthusiasm driving AI adoption isn't solely due to the helpful nature of AI chat bots.  It may come as a surprise to some, but one of the industries that has been affected most by artificial intelligence is the marketing industry.

On this week's episode of ETF Prime, Ben Fulton, CEO of WEBs Investments joins Nate Geraci to discuss the firm's suite of defined volatility ETFs. Later, Arthur Nowak, Client Portfolio Manager at Alger, shares the firm's high-conviction approach to investing in innovation and growth, including the Alger AI Enablers & Adopters ETF (ALAI).

It's certainly no secret that many of the largest tech companies in the world have spent billions of dollars each year to rapidly scale up their artificial intelligence operations.

It looks like the race for global AI innovation is quickly shifting to the next heat. On August 7, OpenAI released its latest artificial intelligence model, GPT-5.

While some previously stable U.S. equity sectors saw some volatility due to macroeconomic uncertainty, one sector that has remained relatively steadfast is artificial intelligence. Many of the companies at the forefront of enabling AI progress, like Nvidia and Microsoft, continue to benefit as AI adoption increases.

New research is showcasing how corporate investment in AI likely won't be going away any time soon. Ernst & Young released its first AI Pulse Survey in July.

ALAI offers concentrated, growth-focused AI exposure, ideal for investors seeking active management beyond core index ETFs. I rate ALAI a Buy for those comfortable with its short track record and the fee hike risk after 2026. The ETF's top holdings, notably Nvidia, have driven recent outperformance versus other AI-themed ETFs since April 2024.