ALAI
The active ETF party keeps getting louder
Fred Alger Management says its ETF suite has now crossed $1 billion in assets under management, up from about $600 million in October 2025. That’s a pretty fast ride for a corner of the market that used to feel like the boring cousin at the ETF family reunion.
Why investors suddenly care
The pitch is simple: if you think the market is getting weirder, why own a fund that just mirrors it? Alger is leaning into that mood with concentrated, high-conviction strategies built around themes like AI and innovation. In a world where everyone wants the “next big thing,” active ETFs are basically offering the guided tour.
The funds doing the heavy lifting
A few products are doing the legwork here:
- Alger 35 ETF (ATFV): a concentrated portfolio of roughly 35 U.S. stocks and the firm’s flagship ideas basket.
- Alger AI Enablers & Adopters ETF (ALAI): launched in 2024 and up about 31% since inception, which is the kind of performance that makes advisors lean forward in their chairs.
- Alger Concentrated Equity ETF (CNEQ) and Alger Mid Cap 40 ETF (FRTY): both have also been outpacing their benchmarks, helping the suite build some credibility instead of just buzz.
The bigger picture
This isn’t just about one manager flexing a round-number milestone. It’s another data point showing investors are willing to pay for active decisions, especially when the story involves AI, semis, and other market darlings. If the ETF boom keeps tilting toward specialized strategies, firms with a strong narrative — and decent performance — could keep eating into the old passive-only playbook.
Big picture: the ETF shelf is getting less like a vending machine and more like a curated menu, and investors seem happy to order the chef’s special.