Alger 35 ETF

ATFV

Market cap $116M

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The Alger 35 ETF offers concentrated exposure to tech and communications, outperforming major peers with nearly 35% annual returns. ATFV's active management and focused 34-stock portfolio have driven strong NAV growth and outperformance since inception. Despite outperformance, ATFV trades at a premium valuation (P/E 33.51x) and has a higher expense ratio than some competitors.

I initiate coverage of the Alger 35 ETF with a Hold rating, with the main reason for it being its extreme volatility. ATFV is managed actively, with a concentrated portfolio, favoring names demonstrating "Positive Dynamic Change." The ATFV portfolio is offering exceptionally robust growth and momentum characteristics, beating IVV as well as CNEQ on these fronts.