As volatility picked up earlier this year, some advisors and investors argued that U.S. large-cap growth was ending—or at least due for a slowdown.
To be fair, there were plenty of reasons to believe that this would be the case. Trade policy between the U.S. and other countries in Europe and Asia threatened to rattle the global supply chain and curb corporate profit growth. Meanwhile, many worried that the U.S. economy was heading into an economic slowdown from elevated interest rates.
However, despite prevailing macroeconomic headwinds, several companies have continued to deliver strong operating results. This is especially true for tech companies like Nvidia, Meta, and Microsoft, which have continued to benefit from growing enthusiasm for artificial intelligence.
As such, we believe it’s far too early to give up on the growth potential of U.S. large-cap companies. Instead, it could be prudent to look for a strategy that focuses directly on the individual securities with the strongest growth potential.
CNEQ’s Fundamental Approach to Tech Momentum
Situations like these are where a fund like the Alger Concentrated Equity ETF (CNEQ) could offer differentiated exposure. True to its name, CNEQ is an active ETF that intends to hold 30 or fewer holdings within its portfolio at any given time.
Alger’s portfolio team can focus more on examining company fundamentals to make sure each high conviction holding is well-positioned to offer durable long-term growth potential.
With its focus on individual security selection, CNEQ offers exposure to many of the companies that are leading the way in technological innovation. This includes Nvidia, TSMC, Meta, and Microsoft, among others. The fund’s tech-heavy weight may continue to benefit from secular growth tailwinds, especially within artificial intelligence. As a whole, the information technology sector made up well over 40% of the fund’s portfolio, as of July 31, 2025.
CNEQ also invests in many companies outside of the tech sector that are also showcasing significant growth opportunities. Such companies include Robinhood, Constellation Energy, and GFL Environmental, among others.
This allows CNEQ to find areas of growth across sectors and industries, seeking to invest in both existing market leaders and companies using new and innovative technologies to become industry disruptors.
All in all, CNEQ’s strategy is already showcasing impressive results. As of August 14, 2025, the fund’s NAV has risen more than 24% year-to-date. These results showcase the advantages of both disciplined stock selection and focusing on tech momentum.
For more news, information, and strategy, visit the Artificial Intelligence Content Hub.
Click here for standard performance and more information on the Alger Concentrated Equity ETF.
Performance data quoted represents past performance and is no guarantee of future results. DUE TO MARKET VOLATILITY, CURRENT PERFORMANCE MAY BE DIFFERENT THAN THE FIGURES SHOWN. Investment return and principal value will fluctuate so that an investor’s shares, when sold in the secondary market, may be worth more or less than original cost. Returns less than one year are not annualized. Performance does not reflect the deduction of commissions, which a broker may charge to execute a transaction in Fund shares, and an investor may incur the cost of the spread between the price at which a dealer will buy shares and the price at which a dealer will sell shares. Market performance is determined using the official closing price on the New York Stock Exchange. Market performance does not represent the returns you would receive if you traded shares at other times. To obtain performance data current to the most recent month end, please visit www.alger.com. Index performance does not represent the fund’s performance. Investors may not invest directly in an index.
Performance shown is net of fees and expenses.
The views expressed are the views of Fred Alger Management, LLC (“FAM”) and its affiliates as of August 2025. These views are subject to change at any time and may not represent the views of all portfolio management teams. These views should not be interpreted as a guarantee of the future performance of the markets, any security or any funds managed by FAM. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Holdings and sector allocations are subject to change. Past performance is not indicative of future performance.
Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies’ earnings and may be more sensitive to market, political, and economic developments. A significant portion of assets will be concentrated in securities in related industries, and may be similarly affected by adverse developments and price movements in such industries. A significant portion of assets may be invested in securities of companies in related sectors, and may be similarly affected by economic, political, or market events and conditions and may be more vulnerable to unfavorable sector developments. The Fund is classified as a “non-diversified fund” under federal securities laws because it can invest in fewer individual companies than a diversified fund. Active trading may increase transaction costs, brokerage commissions, and taxes, which can lower the return on investment. At times, cash may be a larger position in the portfolio and may underperform relative to equity securities. ETF shares are based on market price rather than net asset value (“NAV”), as a result, shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund may also incur brokerage commissions, as well as the cost of the bid/ask spread, when purchase or selling ETF shares. The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from trading in secondary markets, periods of high volatility and disruption in the creation and/or redemption process of the Fund. Any of these factors, among others, may lead to the Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more) than NAV when you sell those shares in the secondary market. The Manager cannot predict whether shares will trade above (premium), below (discount) or at NAV. The Fund may effect its creations and redemptions for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind. Brokerage fees and taxes will be higher than if the Fund sold and redeemed shares in-kind. Certain shareholders, including other funds advised by the Manager or an affiliate of the Manager, may from time to time own a substantial amount of the shares of the Fund. Redemptions by large shareholders could have a significant negative impact on the Fund.
Investing in innovation is not without risk and there is no guarantee that investments in research and development will result in a company gaining market share or achieving enhanced revenue. Companies exploring new technologies may face regulatory, political or legal challenges that may adversely impact their competitive positioning and financial prospects. Developing technologies to displace older technologies or create new markets may not in fact do so, and there may be sector-specific risks. There will be winners and losers that emerge, and investors need to conduct a significant amount of due diligence on individual companies to assess these risks and opportunities.
Fred Alger Management, LLC uses the Global Industry Classification Standard (GICS®) for categorizing companies into sectors and industries. GICS® is used for all portfolio characteristics involving sector and industry data such as benchmark, active and relative weights and attribution. The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and Standard & Poor’s Financial Services, LLC (S&P). Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose. The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages. Sector and industry classifications are sourced from GICS. Historical classifications use GICS categories available as of the date of this presentation.
Alger pays compensation to VettaFi to sell various strategies to prospective investors.
The following positions represented the noted percentages of CNEQ assets as of July 31, 2025: Nvidia Corporation: 15.58%; Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored Adr: 4.24%; Meta Platforms Inc Class A: 6.19%; Microsoft Corporation: 11.02%; Robinhood Markets, Inc. Class A: 1.81%; Constellation Energy Corporation: 2.98%; Gfl Environmental Inc: 3.28%.
Before investing, carefully consider a Fund’s investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for a Fund’s most recent month-end performance data, visit www.alger.com, call (800) 992-3863 (for a mutual fund) or (800) 223-3810 (for an ETF), or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing. Distributor: Fred Alger & Company, LLC. All underlying series of The Alger ETF Trust listed on NYSE Arca, Inc. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
