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ALAI - ETF AI Analysis

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ALAI

Alger AI Enablers & Adopters ETF (ALAI)

Rating:65Neutral
Price Target:
ALAI’s rating suggests it is a solid but not flawless AI-focused ETF, led by strong positions in companies like Nvidia, Alphabet, and TSMC, which benefit from powerful roles in AI chips, cloud, and advanced technologies. These leaders, along with Microsoft and Apple, support the fund’s quality through strong financial performance and long-term AI growth potential. However, weaker names like Nebius Group, which faces revenue and cash flow challenges and signs of overvaluation, slightly weigh on the overall rating, and the fund’s heavy tilt toward a concentrated group of large AI and semiconductor players adds sector concentration risk.
Positive Factors
Strong Recent Fund Performance
The ETF has shown solid gains so far this year and over the past few months, indicating positive momentum in its strategy.
Leading AI-Focused Holdings
Many of the largest positions are major technology and AI-related companies that have delivered strong or very strong performance, helping drive the fund’s returns.
Focused Technology and Communication Exposure
A large share of the portfolio is in technology and communication services, giving investors targeted exposure to sectors that have been key beneficiaries of AI growth.
Negative Factors
High Stock Concentration
A small group of large technology names makes up a significant portion of the fund, which increases the impact if any of these companies run into trouble.
Limited Geographic Diversification
With most assets invested in U.S. companies, the ETF offers little protection if the U.S. market or economy weakens.
Mixed Performance Among Top Holdings
While several major positions have done well, some large holdings have shown weak or negative performance, which can hold back overall returns.

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

ALAI Summary

The Alger AI Enablers & Adopters ETF (ALAI) is a fund that focuses on companies using or building artificial intelligence and robotics, rather than tracking a traditional index. It mainly holds U.S. technology and communication stocks tied to the Robotics & AI theme. Well-known holdings include Nvidia, Amazon, Microsoft, Alphabet (Google), and Apple. 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 tech names. A key risk is that it is heavily concentrated in technology-related stocks, so its price can swing 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

ALAI is riding the AI wave with a heavy tilt toward U.S. Big Tech and chipmakers, and that’s where most of the action is. Nvidia, Broadcom, TSMC, and a surging Western Digital are doing the heavy lifting as demand for AI hardware and data infrastructure heats up. Amazon and Alphabet add steady AI-driven growth from cloud and digital ads, while Meta is contributing but not really stealing the show. Apple and Microsoft look more mixed, occasionally losing steam, but the fund’s global, tech-centric lineup keeps the AI theme firmly in the driver’s seat.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Nvidia14.68%$52.28M$5.06T99.22%
76
Outperform
Amazon7.09%$25.25M$2.84T39.12%
71
Outperform
Microsoft5.93%$21.12M$3.15T8.60%
79
Outperform
TSMC5.86%$20.87M$1.80T147.84%
81
Outperform
Western Digital5.50%$19.59M$136.97B879.54%
77
Outperform
Broadcom5.33%$18.98M$2.00T117.28%
76
Outperform
Alphabet Class C5.26%$18.73M$4.15T114.58%
82
Outperform
Meta Platforms4.86%$17.31M$1.71T23.44%
76
Outperform
Nebius Group3.59%$12.79M$37.04B501.24%
46
Neutral
Apple2.81%$10.01M$3.98T27.35%
79
Outperform

ALAI Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
35.47
Positive
100DMA
35.79
Positive
200DMA
35.40
Positive
Market Momentum
MACD
1.37
Negative
RSI
72.23
Negative
STOCH
75.24
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 37.93, equal to the 50-day MA of 35.47, and equal to the 200-day MA of 35.40, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 72.23 is Negative, neither overbought nor oversold. The STOCH value of 75.24 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
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$356.15M0.55%
65
Neutral
$946.90M0.55%
65
Neutral
$388.12M0.39%
58
Neutral
$337.06M0.99%
61
Neutral
$193.83M0.50%
61
Neutral
$108.51M0.75%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ALAI
Alger AI Enablers & Adopters ETF
40.09
15.73
64.57%
BKGI
BNY Mellon Global Infrastructure Income ETF
CCNR
CoreCommodity Natural Resources ETF
AGIX
KraneShares Artificial Intelligence & Technology 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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