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FRTY - ETF AI Analysis

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FRTY

Alger Mid Cap 40 ETF (FRTY)

Rating:59Neutral
Price Target:
FRTY, the Alger Mid Cap 40 ETF, has a solid but not top-tier rating, reflecting a mix of strong growth names and some holdings with notable risks. High-quality contributors like Comfort Systems USA, Heico, Vertiv, and Biogen support the fund with strong financial performance, growth, and positive earnings calls, though often at rich valuations. The overall rating is held back by weaker names such as FTAI and Arrowhead Pharmaceuticals, where high leverage, negative or challenged cash flows, and financial instability increase risk, and investors should also note the fund’s exposure to several companies with elevated valuations and profitability pressures.
Positive Factors
Strong Leading Holdings
Several of the largest positions, especially in industrial and technology names, have shown strong gains, helping support the fund’s overall results.
Focused Sector Diversification
The ETF spreads its investments across industrials, health care, technology, and communication services, which helps reduce the impact if one sector struggles.
Targeted Mid-Cap Exposure
By focusing on mid-sized companies, the fund offers access to businesses that can still grow meaningfully but are generally more established than small caps.
Negative Factors
Mixed Performance So Far This Year
Despite a recent one-month rebound, the ETF’s returns over the year to date and the last three months have been weak, showing uneven momentum.
High Expense Ratio
The fund’s fees are relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.
Heavy U.S. and Sector Concentration
With almost all assets in U.S. stocks and large weights in just a few sectors, the fund is sensitive to downturns in the U.S. market and those specific industries.

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

FRTY Summary

The Alger Mid Cap 40 ETF (FRTY) is an actively managed fund that focuses on U.S. mid-sized companies with strong growth potential, rather than tracking a specific index. It holds just 40 stocks, mainly in industrials, health care, and technology, including well-known names like Cloudflare and Robinhood. Someone might invest in this ETF to seek higher growth than large, established companies while still avoiding the smallest, riskiest firms, and to get diversification across several sectors in one fund. A key risk is that growth-focused mid-cap stocks can be quite volatile and may fall more than the overall market during downturns.
How much will it cost me?The Alger Mid Cap 40 ETF (Ticker: FRTY) has an expense ratio of 0.6%, meaning you’ll pay $6 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on a curated portfolio of 40 mid-cap growth stocks, which requires more research and management compared to passively managed ETFs.
What would affect this ETF?The Alger Mid Cap 40 ETF (FRTY) could benefit from continued innovation and growth in sectors like technology and communication services, which make up a significant portion of its holdings. However, it may face challenges if economic conditions worsen, as mid-cap companies are often more sensitive to market volatility and higher interest rates could impact growth-focused stocks. Regulatory changes or sector-specific disruptions in industries like healthcare or consumer cyclical could also influence performance.

FRTY Top 10 Holdings

FRTY is leaning hard into U.S. mid-cap growth, with a clear tilt toward industrial and tech innovators. Vertiv, Comfort Systems, Modine, and Flex are doing the heavy lifting, with shares rising on strong earnings and upbeat outlooks, giving the fund a solid industrial backbone. On the tech side, Synopsys and Cloudflare are more of a mixed bag—fundamentally strong but bumpier in recent trading—while Heico and Robinhood have been lagging, acting like a bit of a headwind. Overall, performance is being driven by a handful of industrial and tech standouts.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Vertiv Holdings4.37%$5.86M$137.86B275.75%
77
Outperform
Comfort Systems4.30%$5.77M$70.81B365.45%
80
Outperform
Liberty Media Liberty Formula One3.91%$5.24M$22.03B-5.22%
66
Neutral
Modine3.86%$5.18M$14.46B200.35%
68
Neutral
Synopsys3.38%$4.53M$96.63B4.97%
73
Outperform
Cloudflare3.32%$4.45M$87.50B104.25%
61
Neutral
Heico Cp Cl A3.25%$4.36M$35.34B5.95%
79
Outperform
Monolithic Power3.10%$4.16M$81.18B159.51%
75
Outperform
RBC Bearings3.06%$4.10M$19.70B82.11%
77
Outperform
Nebius Group2.98%$4.00M$49.11B610.71%
46
Neutral

FRTY Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
20.36
Positive
100DMA
20.81
Positive
200DMA
21.01
Positive
Market Momentum
MACD
0.44
Negative
RSI
61.94
Neutral
STOCH
83.12
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FRTY, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 21.13, equal to the 50-day MA of 20.36, and equal to the 200-day MA of 21.01, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 61.94 is Neutral, neither overbought nor oversold. The STOCH value of 83.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRTY.

FRTY Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$137.31M0.60%
59
Neutral
$590.53M0.20%
71
Outperform
$382.76M0.18%
71
Outperform
$317.70M0.55%
67
Neutral
$158.16M0.80%
75
Outperform
$114.35M0.85%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FRTY
Alger Mid Cap 40 ETF
21.89
5.35
32.35%
AVMV
Avantis U.S. Mid Cap Value ETF
AVMC
Avantis U.S. Mid Cap Equity ETF
TMVE
Thrivent Mid Cap Value ETF
GLRY
Inspire Faithward Mid Cap Momentum ESG ETF
TMFM
Motley Fool Mid-Cap Growth 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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