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ALAI - ETF AI Analysis
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Alger AI Enablers & Adopters ETF (ALAI)
Rating:69Neutral
Price Target:―
Positive Factors
Leading AI-Focused Holdings
The ETF owns several well-known technology and AI-related companies that are central to the growth of artificial intelligence.
Sector Focus on Growth Areas
Heavy exposure to technology and communication services positions the fund to benefit if AI and digital businesses continue to expand over time.
Meaningful Size
With a sizable asset base, the ETF is large enough to offer reasonable trading liquidity for most everyday investors.
Negative Factors
Recent Weak Performance
The fund has shown weak returns over the past month, three months, and year-to-date, which may concern investors looking for near-term gains.
High Concentration in a Few Stocks
A small group of large technology names makes up a big share of the portfolio, increasing the impact if any of them struggle.
Above-Average Fees
The expense ratio is on the higher side for an ETF, which means more of the fund’s returns are used to cover costs each year.
ALAI vs. SPDR S&P 500 ETF (SPY)
AUM298.01M
RegionGlobal
Expense Ratio0.55%
Beta1.59
IssuerAlger
Inception DateApr 05, 2024
Dividend Yield1.46%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume65,165
30 Day Avg. Volume88,579
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
47.16Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering59
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ALAI Summary
The Alger AI Enablers & Adopters ETF (ALAI) is a fund focused on the theme of robotics and artificial intelligence, rather than tracking a traditional market index. It mainly holds U.S. technology and communication companies that build or use AI, including well-known names like Nvidia and Microsoft. Someone might invest in this ETF to seek long-term growth from the expanding use of AI across many industries, while getting diversification across several leading companies. A key risk is that it is heavily concentrated in technology and AI-related stocks, so its price can be very volatile and may fall sharply if this sector struggles.
How much will it cost me?The Alger AI Enablers & Adopters ETF (ALAI) has an expense ratio of 0.55%, which means you’ll pay $5.50 per year for every $1,000 invested. This is slightly higher than the average for ETFs because it is actively managed and focuses on a specialized theme like AI and robotics, requiring more research and expertise. However, this cost reflects the potential value of accessing a curated portfolio of innovative companies in a high-growth sector.
What would affect this ETF?The Alger AI Enablers & Adopters ETF (ALAI) could benefit from increasing global adoption of AI and robotics, as well as continued innovation in technology and communication services, which make up a significant portion of its holdings. However, challenges such as regulatory scrutiny on AI, potential economic slowdowns, or rising interest rates could negatively impact growth-focused companies like Nvidia, Microsoft, and Meta Platforms that dominate the ETF's portfolio.
ALAI Top 10 Holdings
This ETF is essentially an AI power grid, heavily wired into U.S. Big Tech and chip leaders. Nvidia and TSMC are the key engines, with both riding steady-to-rising momentum as demand for AI hardware stays hot. Alphabet and Amazon are also pulling their weight, giving the fund a lift through improving sentiment around cloud and digital ads. On the flip side, Microsoft and Meta have been losing steam lately, and Tesla is dragging the fund. Overall, it’s a concentrated, tech-heavy, globally exposed bet on the AI boom.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Nvidia | 12.32% | $30.52M | $4.53T | 44.56% | 76 Outperform | |
| Microsoft | 9.63% | $23.84M | $3.50T | 7.46% | 79 Outperform | |
| Meta Platforms | 7.90% | $19.56M | $1.69T | -0.29% | 76 Outperform | |
| Amazon | 6.36% | $15.76M | $2.55T | 0.11% | 71 Outperform | |
| Nebius Group | 5.49% | $13.61M | $23.03B | 225.26% | 46 Neutral | |
| TSMC | 4.63% | $11.47M | $1.45T | 64.38% | 81 Outperform | |
| AppLovin | 4.38% | $10.85M | $180.95B | 56.10% | 74 Outperform | |
| Alphabet Class C | 3.87% | $9.58M | $4.02T | 69.99% | 82 Outperform | |
| Broadcom | 3.74% | $9.27M | $1.54T | 56.66% | 76 Outperform | |
| Tesla | 3.19% | $7.89M | $1.45T | 9.32% | 73 Outperform |
ALAI Technical Analysis
Positive
―
Price Trends
36.22
Positive
36.41
Positive
32.57
Positive
Market Momentum
0.03
Positive
54.61
Neutral
57.10
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ALAI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 36.67, equal to the 50-day MA of 36.22, and equal to the 200-day MA of 32.57, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 57.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALAI.
ALAI Peer Comparison
Comparison Results
Performance Comparison
ALAI
Alger AI Enablers & Adopters ETF
37.02
10.08
37.42%
BKGI
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MGNR
American Beacon GLG Natural Resources ETF
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CCNR
CoreCommodity Natural Resources ETF
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FBOT
Fidelity Disruptive Automation ETF
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AGIX
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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