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ALAI - ETF AI Analysis

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ALAI

Alger AI Enablers & Adopters ETF (ALAI)

Rating:62Neutral
Price Target:
ALAI, the Alger AI Enablers & Adopters ETF, earns a solid overall rating thanks to heavy exposure to leading AI and tech names like Nvidia and Alphabet, whose strong financial performance and strategic focus on AI and cloud services support long-term growth. Other major holdings such as Microsoft, Amazon, and Apple further reinforce the fund’s quality, though their high valuations and some mixed technical signals can limit near-term upside. The main risk is the fund’s concentration in large, premium-priced technology and AI-related companies, which could be more volatile if growth expectations or market sentiment weaken.
Positive Factors
Strong Overall Year-to-Date Results
The fund has delivered strong gains so far this year, helped by its focus on companies tied to artificial intelligence.
Leading AI and Technology Holdings
Top positions like Nvidia, TSMC, Amazon, Alphabet, and Apple have shown generally strong or improving performance, supporting the ETF’s growth potential.
Broad Sector Mix Within Growth Areas
While technology is the largest slice, the fund also holds communication services, consumer, financial, industrial, and health care stocks, which adds some diversification within growth-oriented sectors.
Negative Factors
High Concentration in a Few Tech Giants
A significant share of the portfolio is tied up in a small number of large technology names, which increases the impact if any of these companies stumble.
Mixed Performance Among Top Holdings
Some major positions, such as Microsoft and Meta, have recently shown weaker performance, which can drag on the fund even when other holdings are doing well.
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, meaning more of the returns are used to cover fees instead of going to investors.

ALAI vs. SPDR S&P 500 ETF (SPY)

ALAI Summary

Alger AI Enablers & Adopters ETF (ALAI) is a fund focused on the theme of Robotics & AI, investing in companies that build artificial intelligence technology or use it to improve their businesses. It mainly holds U.S. technology and communication stocks, including well-known names like Nvidia and Microsoft, plus other big tech firms pushing AI forward. Someone might invest in ALAI to tap into potential long-term growth from the expanding use of AI across many industries. However, this ETF is heavily tilted toward tech-related companies, so its price can be quite volatile and may go up and down sharply with changes in the tech sector.
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, with Nvidia, TSMC, and Broadcom providing the semiconductor “engines” that have been rising or staying resilient and doing much of the heavy lifting. Western Digital and Nebius add more volatile, storage-and-infrastructure exposure, with performance that’s been strong over the year but choppy lately. On the Big Tech side, Microsoft, Amazon, Meta, Alphabet, and Apple give the fund a familiar U.S. mega-cap backbone, though several of these names have been mixed or lagging in recent months. Overall, it’s a globally focused, heavily tech-and-AI concentrated bet on the AI ecosystem.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia13.58%$63.25M$4.77T5.99%
76
Outperform
Microsoft5.54%$25.83M$2.92T-23.91%
79
Outperform
TSMC5.37%$25.03M$1.82T54.24%
81
Outperform
Amazon4.89%$22.76M$2.48T-1.54%
71
Outperform
Broadcom4.39%$20.44M$1.81T22.37%
76
Outperform
Meta Platforms4.24%$19.77M$1.51T-15.76%
76
Outperform
Western Digital4.03%$18.76M$159.76B546.84%
77
Outperform
Alphabet Class C3.77%$17.58M$4.08T70.06%
82
Outperform
Nebius Group3.35%$15.61M$42.70B188.98%
46
Neutral
Apple3.20%$14.91M$4.99T61.77%
79
Outperform

ALAI Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
44.14
Negative
100DMA
40.57
Negative
200DMA
38.31
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ALAI, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 43.67, equal to the 50-day MA of 44.14, and equal to the 200-day MA of 38.31, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALAI.

ALAI Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$468.36M0.58%
62
Neutral
$423.75M0.39%
60
Neutral
$396.24M0.85%
55
Neutral
$298.70M0.44%
60
Neutral
$204.38M0.50%
60
Neutral
$124.36M0.75%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALAI
Alger AI Enablers & Adopters ETF
40.35
8.35
26.09%
CCNR
CoreCommodity Natural Resources ETF
BITQ
Bitwise Crypto Industry Innovators ETF
TURF
T. Rowe Price Natural Resource ETF
FBOT
Fidelity Disruptive Automation ETF
AIFD
TCW Artificial Intelligence ETF
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.
DisclaimerThis 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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