Fred Alger Management has launched the Alger Weatherbie Enduring Growth ETF (NYSE Arca: AWEG), an actively managed exchange traded fund that invests in a focused portfolio of 30 or fewer mid-cap growth companies with an ESG rating of medium or better. This is Alger’s third non-transparent actively managed ETF and first with a dedicated ESG mandate.
AWEG seeks to invest in quality companies with innovative business models, strong sales, and rapid earnings growth. Weatherbie Capital serves as the fund’s subadvisor.
Portfolio managers George Dai (Weatherbie Capital’s CIO) and Josh Bennett (Weatherbie’s COO) incorporate an ESG scoring methodology into the investment process and look to invest in companies that consider their ESG impact while delivering consistent results for shareholders.
“We believe the addition of the ESG scoring methodology into our fundamental bottom-up research process is an important and valuable tool for both stock selection and portfolio construction,” said Dai in a news release announcing the fund’s launch.
Bennett added: “We continue to field requests from investors that are interested in portfolios that integrate ESG considerations with quality and long-term growth potential. Our team-based approach enables us to create a high-conviction portfolio of what we believe are our best ideas that address both of these important factors.”
Dan Chung, CEO and CIO of Alger, said that the introduction of AWEG allows the firm “to help meet the needs of investors that may prioritize liquidity and ESG consciousness in addition to alpha generation.”
Added Chung: “This strategy provides access to the Weatherbie team’s active portfolio construction through the lower cost and tax-efficient wrapper of an ETF.”