Alger AI Enablers & Adopters ETF

Alger AI Enablers & Adopters ETF (ALAI) is an actively managed, non-diversified fund. It picks stocks that Alger believes will benefit from artificial intelligence, from chipmakers like NVIDIA to companies that use AI in their own businesses. It is concentrated: the top 10 holdings made up about 52% of assets as of June 30, 2026. It can also own private companies such as Anthropic PBC. Its 0.58% expense ratio is close to the 0.56% average of similar growth funds.

• Over the year to Oct 27, 2026, ALAI returned +15.5%, 1st of 9 among similar funds.
• Its worst full calendar year was 2025 (+39.8%); its best was 2025 (+39.8%).
• The deepest fall in its price history was 29.4% (Feb 14, 2025 to Apr 4, 2025), recovered by Jun 11, 2025.

As of Jun 30, 2026, the fund held 79 securities; the ten largest made up 52.27% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $61.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +19.35%, +15.15%, +0.55%.

ALAI does not track an index. Alger's managers pick stocks using their own research, in three steps. First, they look for companies undergoing what Alger calls positive change. That means either fast growth, such as quickly rising demand, or a turning point, such as a new product, a new regulation or new management. Second, they sort these companies into two groups. AI Enablers build AI infrastructure such as hardware, software, machinery and services. AI Adopters use AI to improve their products or cut costs. Third, the managers judge, mostly through qualitative research rather than hard numbers, whether AI could meaningfully drive the stock over the next 12 to 36 months.

At least 80% of net assets goes into these stocks, which can be of any size. At least 25% goes into a group of tech-related industries, including semiconductors, software and interactive media. Because the fund is non-diversified, it can hold large single positions. As of June 30, 2026, it had 79 holdings, led by NVIDIA at 12.2%, Taiwan Semiconductor at 6.0% and Amazon at 5.4%. It can also buy privately placed securities, which have no ready market. Anthropic PBC made up 2.9%.

There is no fixed rebalancing schedule. The managers sell when a stock reaches a target price, falls short of expectations or a better idea comes along. The April 28, 2026 prospectus reports portfolio turnover of 194%, which means the fund replaced its holdings about twice over in a year.

• ALAI charges 0.58% a year, versus an average of 0.56% for the similar funds below (7th of 9, cheapest first).
• Of that, 0.45% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.09% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $59 in the first year and $820 over 10 years (assuming a 5% annual return).

ALAI is a concentrated, actively managed bet on AI stocks that has moved about twice as much as the market, so it fits as a small add-on rather than a foundation.

ALAI launched on April 5, 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 40.26%. That same year held its deepest drop: 29.4% from February 14 to April 4, 2025. It recovered by June 11, about two months later. Over the year to October 27, 2026, volatility was 28.8% and beta was 1.9, meaning it has tended to move about twice as much as the market. Anyone who has to sell shares during a slump could lock in steep losses. The trailing yield of 1.24%, paid once a year, adds little income. Costs are 0.58% a year, or $820 over 10 years in the SEC's standard $10,000 example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.