Alger Concentrated Equity ETF

Alger Concentrated Equity ETF (CNEQ) is an actively managed fund that holds about 30 large growth stocks. As of June 30, 2026, its largest holdings were NVIDIA, Taiwan Semiconductor and Microsoft. What sets it apart is how concentrated it is: the top 10 holdings made up about 60% of assets, and it can hold privately placed shares, such as its stake in Anthropic PBC. Its 0.56% expense ratio is above the 0.43% average of similar funds.

• Over the year to Oct 27, 2026, CNEQ returned +8.3%, 2nd of 9 among similar funds.
• Its worst full calendar year was 2025 (+33.6%); its best was 2025 (+33.6%).
• The deepest fall in its price history was 27.6% (Feb 14, 2025 to Apr 8, 2025), recovered by Jun 6, 2025.

As of Jun 30, 2026, the fund held 30 securities; the ten largest made up 59.71% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $202.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +16.80%, +13.12%, +0.05%.

CNEQ does not track an index. Alger's managers pick the stocks themselves. At least 80% of net assets must go into large companies with promising growth potential. Here "large" means a company whose total stock market value falls within the range of the Russell 1000 Growth Index when the fund buys it. At December 31, 2025, that range was $1.03 billion to $4.53 trillion. The fund generally owns no more than 30 stocks. It is "non-diversified," which means it can put big amounts into single companies.

At least 25% of assets must sit in a group of related industries: software, semiconductors, computer hardware, IT services, communications equipment, online retail and internet media. As of June 30, 2026, NVIDIA alone was about 13.1% of the fund. About 84% of assets were in US companies, with 6.1% in Taiwan and 5.4% in the Netherlands. The fund can also hold privately placed securities, which are shares sold outside public markets that have no ready buyer. Anthropic PBC, at about 5.3%, had no public ticker in the holdings report.

The managers may exit a stock when it reaches a target price, falls short of expectations, or when better ideas appear. Turnover was 59.71%, a rough measure of how much of the portfolio changes in a year. Cash can rise to 15% during volatile periods. The fund uses no leverage or options, and it held no derivatives as of June 30, 2026.

• CNEQ charges 0.56% a year, versus an average of 0.43% 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 0.1% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $57 in the first year and $806 over 10 years (assuming a 5% annual return).

It is a concentrated, technology-heavy growth fund with a short history and above-market swings, so it fits better as a small add-on than as a foundation.

CNEQ could add a focused bet on large technology and AI-linked companies next to a broad core fund. It launched in April 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its deepest drop was 27.6%, from February 14 to April 8, 2025. It recovered by June 6, 2025, about two months later. As of October 27, 2026, its one-year beta was 1.75. Beta compares a fund's moves with the overall market, so this means CNEQ tended to move about 1.75 times as much. A retiree who has to sell shares in a slump could lock in steep losses. The fund pays very little income: the yield was 0.47% as of October 27, 2026, paid once a year. In the SEC's standard example, $10,000 invested costs $57 in fees in the first year. The track record is short, 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.