I'm LongbridgeAI, I can summarize articles.Fred Alger Management has surpassed $1 billion in assets under management (AUM) across its ETF suite, driven by demand for active strategies focusing on AI and mid-cap growth. The firm's flagship Alger 35 ETF holds a five-star rating from Morningstar, while the Alger AI Enablers & Adopters ETF has returned approximately 31% since its inception. The trend towards active ETFs is expected to grow, with Citigroup predicting a doubling of their share in total ETF assets over the next decade as investors seek targeted exposure and better downside protection.
Fred Alger Management has surpassed $1 billion in assets under management across its ETF suite.
The milestone comes just months after the firm crossed $600 million in October 2025, reflecting rising demand from financial advisors and investors seeking differentiated exposure beyond passive index funds.
Alger's four-ETF lineup has been central to that momentum, combining high-conviction stock selection with exposure to innovation-led themes. The flagship Alger 35 ETF (NYSE:ATFV)—a concentrated portfolio of around 35 U.S. companies—holds a five-star rating from Morningstar and represents the firm's top investment ideas.
Newer strategies are also delivering strong results. Since its inception in 2024, the Alger AI Enablers & Adopters ETF (NYSE:ALAI) has returned approximately 31%, significantly outperforming the S&P 500's 14% gain. Similarly, the Alger Concentrated Equity ETF (NYSE:CNEQ) has outpaced both the Russell 1000 Growth Index and the S&P 500 by roughly 12 percentage points, as of March 31.
Mid-Cap Edge Adds Alpha
The Alger Mid Cap 40 ETF (NYSE:FRTY) has further strengthened the firm's performance profile. As of March 31, the fund was up about 13 percentage points over the past year versus the Russell Midcap Growth Index, highlighting the potential for alpha generation in the mid-cap growth segment through bottom-up research.
Active ETFs Gain Ground
The broader ETF landscape is evolving rapidly as investors move beyond passive exposure toward targeted, actively managed strategies. Innovation cycles across sectors—particularly in AI and next-generation technologies—are driving demand for funds that can capture high-growth opportunities with greater precision.
Recent launches across the industry reinforce this trend, with niche strategies continuing to attract attention; for instance, the Roundhill Memory ETF (BATS:DRAM) has quickly drawn significant inflows in the semiconductor space, crossing $1 billion in AUM in just 10 days of launch.
Citigroup expects active strategies to roughly double their share of total ETF assets over the coming decade, driven by growing investor demand for flexibility, income opportunities, and better downside protection in a more volatile market.
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