Alger Concentrated Equity ETF

CNEQ

Market cap $212M

The Alger Concentrated Equity ETF (CNEQ) offers exposure to 30 high-conviction, growth-oriented stocks, heavily weighted toward mega-cap technology and AI leaders. CNEQ has outperformed benchmark indices over the past year, driven by the AI growth theme and significant allocations to the Magnificent 7 stocks. Despite high concentration and sector risk, I recommend a Buy rating for CNEQ, best used as a satellite position to enhance technology exposure within a diversified portfolio.

It's certainly no secret at this point that many investors have leaned on the tech sector as a significant driver of growth in the past few years. There's certainly a good reason why investors have chosen to do so.

When uncertain market conditions first began to pick up earlier this year, some advisors and investors began to believe the era of U.S. large-cap growth was going to come to an end. Or at the very least, growth in the large-cap sector would see a significant slowdown.

If 2025's already extensive collection of news headlines can provide any lesson, it's that the market environment can change fast.  At this point, it's realistically too difficult for advisors and investors to try to anticipate how next week's headlines could affect the near-term market.

CNEQ offers a high-conviction, concentrated growth strategy with active management, delivering strong outperformance versus QQQ despite perceived higher risks. The ETF's sector and holding concentration is less risky than it appears, with diversified allocations and meaningful weights to all positions. Active management has shown agility and conviction, outperforming in bull markets and handling short-term volatility well, though untested in prolonged downturns.

Fred Alger Management rolled out two new exchange-traded funds on Friday, bringing its ETF family to five funds. Unlike the rest of the firm's entirely actively managed lineup, these newest additions are fully transparent.