THE ALGER ETF TRUST
QUARTERLY REPORT
September 30, 2021
THE ALGER ETF TRUST | ALGER 35 ETF |
Schedule of Investments September 30, 2021 (Unaudited) |
COMMON STOCKS—99.2% | SHARES | VALUE | ||||||
AEROSPACE & DEFENSE—4.4% | ||||||||
HEICO Corp. | 4,869 | $ | 642,075 | |||||
APPLICATION SOFTWARE—8.9% | ||||||||
Adobe, Inc.* | 732 | 421,427 | ||||||
Datadog, Inc., Cl. A* | 2,630 | 371,750 | ||||||
Paycom Software, Inc.* | 814 | 403,541 | ||||||
The Trade Desk, Inc., Cl. A* | 1,689 | 118,737 | ||||||
1,315,455 | ||||||||
BIOTECHNOLOGY—2.2% | ||||||||
Natera, Inc.* | 2,845 | 317,047 | ||||||
CONSUMER FINANCE—3.3% | ||||||||
Upstart Holdings, Inc.* | 1,521 | 481,305 | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—9.4% | ||||||||
Marqeta, Inc., Cl. A* | 14,737 | 325,983 | ||||||
PayPal Holdings, Inc.* | 2,130 | 554,247 | ||||||
Square, Inc., Cl. A* | 801 | 192,112 | ||||||
Visa, Inc., Cl. A | 1,420 | 316,305 | ||||||
1,388,647 | ||||||||
FINANCIAL EXCHANGES & DATA—2.9% | ||||||||
S&P Global, Inc. | 1,010 | 429,139 | ||||||
HEALTHCARE EQUIPMENT—6.6% | ||||||||
Dexcom, Inc.* | 673 | 368,037 | ||||||
Intuitive Surgical, Inc.* | 601 | 597,484 | ||||||
965,521 | ||||||||
HEALTHCARE TECHNOLOGY—2.3% | ||||||||
Veeva Systems, Inc., Cl. A* | 1,176 | 338,888 | ||||||
INTERACTIVE MEDIA & SERVICES—9.6% | ||||||||
Alphabet, Inc., Cl. C* | 165 | 439,776 | ||||||
Genius Sports Ltd.* | 31,192 | 582,043 | ||||||
Snap, Inc., Cl. A* | 5,212 | 385,010 | ||||||
1,406,829 | ||||||||
INTERNET & DIRECT MARKETING RETAIL—9.6% | ||||||||
Amazon.com, Inc.* | 379 | 1,245,030 | ||||||
MercadoLibre, Inc.* | 97 | 162,902 | ||||||
1,407,932 | ||||||||
INTERNET SERVICES & INFRASTRUCTURE—1.5% | ||||||||
Shopify, Inc., Cl. A* | 160 | 216,925 | ||||||
LIFE SCIENCES TOOLS & SERVICES—2.7% | ||||||||
Bio-Techne Corp. | 830 | 402,193 | ||||||
MANAGED HEALTHCARE—1.0% | ||||||||
Progyny, Inc.* | 2,554 | 143,024 | ||||||
OIL & GAS EQUIPMENT & SERVICES—1.2% | ||||||||
Core Laboratories NV | 6,264 | 173,826 | ||||||
PHARMACEUTICALS—2.3% | ||||||||
Catalent, Inc.* | 2,529 | 336,534 | ||||||
REAL ESTATE SERVICES—3.0% | ||||||||
FirstService Corp. | 2,438 | 440,010 | ||||||
RESEARCH & CONSULTING SERVICES—2.0% | ||||||||
CoStar Group, Inc.* | 3,433 | 295,444 |
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THE ALGER ETF TRUST | ALGER 35 ETF |
Schedule of Investments September 30, 2021 (Unaudited) (Continued) |
COMMON STOCKS—99.2% (CONT.) | SHARES | VALUE | ||||||
RESTAURANTS—1.6% | ||||||||
Shake Shack, Inc., Cl. A* | 2,912 | $ | 228,476 | |||||
SEMICONDUCTOR EQUIPMENT—7.5% | ||||||||
Applied Materials, Inc. | 5,610 | 722,175 | ||||||
SolarEdge Technologies, Inc.* | 1,446 | 383,508 | ||||||
1,105,683 | ||||||||
SEMICONDUCTORS—3.8% | ||||||||
Advanced Micro Devices, Inc.* | 2,876 | 295,940 | ||||||
QUALCOMM, Inc. | 2,022 | 260,798 | ||||||
556,738 | ||||||||
SYSTEMS SOFTWARE—10.4% | ||||||||
Crowdstrike Holdings, Inc., Cl. A* | 1,231 | 302,555 | ||||||
Microsoft Corp. | 4,363 | 1,230,017 | ||||||
1,532,572 | ||||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—3.0% | ||||||||
Apple, Inc. | 3,145 | 445,017 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $13,800,187) | 14,569,280 | |||||||
Total Investments | ||||||||
(Cost $13,800,187) | 99.2 | % | $ | 14,569,280 | ||||
Unaffiliated Securities (Cost $13,800,187) | 14,569,280 | |||||||
Other Assets in Excess of Liabilities | 0.8 | % | 122,078 | |||||
NET ASSETS | 100.0 | % | $ | 14,691,358 |
* Non-income producing security.
See Notes to Financial Statements.
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THE ALGER ETF TRUST | ALGER MID CAP 40 ETF |
Schedule of Investments September 30, 2021 (Unaudited) |
COMMON STOCKS—95.1% | SHARES | VALUE | ||||||
AEROSPACE & DEFENSE—2.5% | ||||||||
HEICO Corp., Cl. A | 7,733 | $ | 915,819 | |||||
AIR FREIGHT & LOGISTICS—2.5% | ||||||||
GXO Logistics, Inc.* | 11,726 | 919,787 | ||||||
APPLICATION SOFTWARE—9.7% | ||||||||
Amplitude, Inc., Cl. A* | 5,509 | 299,359 | ||||||
Asana, Inc., Cl. A* | 6,685 | 694,170 | ||||||
Bill.com Holdings, Inc.* | 2,862 | 764,011 | ||||||
Five9, Inc.* | 4,682 | 747,903 | ||||||
Qualtrics International, Inc., Cl. A* | 16,869 | 720,981 | ||||||
Tyler Technologies, Inc.* | 840 | 385,266 | ||||||
3,611,690 | ||||||||
AUTO PARTS & EQUIPMENT—2.2% | ||||||||
Aptiv PLC* | 5,509 | 820,676 | ||||||
BIOTECHNOLOGY—5.4% | ||||||||
Moderna, Inc.* | 1,670 | 642,716 | ||||||
Natera, Inc.* | 12,224 | 1,362,243 | ||||||
2,004,959 | ||||||||
CASINOS & GAMING—2.0% | ||||||||
MGM Resorts International | 17,103 | 737,995 | ||||||
CONSTRUCTION MACHINERY & HEAVY TRUCKS—2.6% | ||||||||
Caterpillar, Inc. | 5,087 | 976,551 | ||||||
CONSUMER FINANCE—5.6% | ||||||||
Upstart Holdings, Inc.* | 6,580 | 2,082,175 | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—5.8% | ||||||||
Affirm Holdings, Inc., Cl. A* | 8,964 | 1,067,881 | ||||||
TaskUS, Inc., Cl. A* | 16,597 | 1,101,543 | ||||||
2,169,424 | ||||||||
ELECTRICAL COMPONENTS & EQUIPMENT—2.1% | ||||||||
Generac Holdings, Inc.* | 1,963 | 802,219 | ||||||
FOOD DISTRIBUTORS—2.9% | ||||||||
US Foods Holding Corp.* | 30,802 | 1,067,597 | ||||||
HEALTHCARE EQUIPMENT—4.2% | ||||||||
Inmode Ltd.* | 9,773 | 1,558,305 | ||||||
HEALTHCARE TECHNOLOGY—1.4% | ||||||||
Doximity, Inc., Cl. A* | 6,437 | 519,466 | ||||||
HOMEFURNISHING RETAIL—2.0% | ||||||||
RH* | 1,119 | 746,272 | ||||||
INDUSTRIAL MACHINERY—4.6% | ||||||||
Colfax Corp.* | 20,496 | 940,767 | ||||||
Gates Industrial Corp. PLC* | 46,542 | 757,238 | ||||||
1,698,005 | ||||||||
INTERACTIVE MEDIA & SERVICES—7.7% | ||||||||
Genius Sports Ltd.* | 52,654 | 982,524 | ||||||
Match Group, Inc.* | 7,466 | 1,172,087 | ||||||
ZoomInfo Technologies, Inc., Cl. A* | 11,423 | 698,973 | ||||||
2,853,584 | ||||||||
LIFE SCIENCES TOOLS & SERVICES—1.6% | ||||||||
Quanterix Corp.* | 12,270 | 610,923 |
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THE ALGER ETF TRUST | ALGER MID CAP 40 ETF |
Schedule of Investments September 30, 2021 (Unaudited) (Continued) |
COMMON STOCKS—95.1% (CONT.) | SHARES | VALUE | ||||||
OIL & GAS EQUIPMENT & SERVICES—2.5% | ||||||||
ChampionX Corp.* | 41,409 | $ | 925,905 | |||||
PAPER PACKAGING—2.1% | ||||||||
Ranpak Holdings Corp., Cl. A* | 28,897 | 775,018 | ||||||
PHARMACEUTICALS—2.1% | ||||||||
Catalent, Inc.* | 5,924 | 788,307 | ||||||
REGIONAL BANKS—4.4% | ||||||||
Signature Bank | 5,952 | 1,620,611 | ||||||
RESTAURANTS—3.5% | ||||||||
Chipotle Mexican Grill, Inc., Cl. A* | 417 | 757,906 | ||||||
Dutch Bros, Inc., Cl. A* | 12,381 | 536,345 | ||||||
1,294,251 | ||||||||
SEMICONDUCTOR EQUIPMENT—2.9% | ||||||||
Brooks Automation, Inc. | 10,417 | 1,066,180 | ||||||
SPECIALTY STORES—1.9% | ||||||||
Academy Sports & Outdoors, Inc.* | 17,717 | 709,034 | ||||||
SYSTEMS SOFTWARE—3.3% | ||||||||
Palo Alto Networks, Inc.* | 1,132 | 542,228 | ||||||
Zscaler, Inc.* | 2,645 | 693,572 | ||||||
1,235,800 | ||||||||
TRADING COMPANIES & DISTRIBUTORS—5.6% | ||||||||
Herc Holdings, Inc.* | 8,303 | 1,357,208 | ||||||
United Rentals, Inc.* | 2,108 | 739,761 | ||||||
2,096,969 | ||||||||
TRUCKING—2.0% | ||||||||
XPO Logistics, Inc.* | 9,457 | 752,588 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $32,547,906) | 35,360,110 | |||||||
Total Investments | ||||||||
(Cost $32,547,906) | 95.1 | % | $ | 35,360,110 | ||||
Unaffiliated Securities (Cost $32,547,906) | 35,360,110 | |||||||
Other Assets in Excess of Liabilities | 4.9 | % | 1,811,617 | |||||
NET ASSETS | 100.0 | % | $ | 37,171,727 |
* | Non-income producing security. |
See Notes to Financial Statements.
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THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited)
NOTE 1 — General: |
The Alger ETF Trust (the “Trust”) is an open-end management investment company, registered under the Investment Company Act of 1940, as amended, (the “1940 Act”), and organized as a business trust under the laws of the Commonwealth of Massachusetts on March 24, 2020. Each of the Alger Mid Cap 40 ETF and the Alger 35 ETF is a separate non-diversified series of the Trust (each, a “Fund” and together, the “Funds”). The Trust qualifies as an investment company as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946-Financial Services – Investment Companies. Each Fund’s investment objective is to seek long-term capital appreciation. Under normal circumstances, each Fund invests primarily in equity securities.
NOTE 2 — Significant Accounting Policies: |
(a) Investment Valuation: The Funds value their financial instruments at fair value using independent dealers or pricing services under policies approved by the Trust’s Board of Trustees (the “Board”). Investments held by the Funds are valued on each day the New York Stock Exchange (the “NYSE”) is open, as of the close of the NYSE (normally 4:00 p.m. Eastern Time).
Investments in money market funds and short-term securities held by the Funds with maturities of 60 days or less are valued at their amortized cost which does not take into account unrealized capital gains or losses and approximates market value.
Equity securities are valued at the last quoted sales price or official closing price on the primary market or exchange on which they are traded as reported by an independent pricing service. In the absence of quoted sales, such securities are valued at the bid price or, in the absence of a recent bid price, the equivalent as obtained from one or more of the major market makers for the securities to be valued.
Securities for which market quotations are not readily available are valued at fair value pursuant to procedures approved by the Board and described further herein.
FASB Accounting Standards Codification 820 – Fair Value Measurements and Disclosures (“ASC 820”) defines fair value as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability and may be observable or unobservable. Observable inputs are based on market data obtained from sources independent of the Funds. Unobservable inputs are inputs that reflect the Funds’ own assumptions based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• | Level 1 – quoted prices in active markets for identical investments |
• | Level 2 – significant other observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
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THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
• | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The Funds’ valuation techniques are generally consistent with either the market or the income approach to fair value. The market approach considers prices and other relevant information generated by market transactions involving identical or comparable assets to measure fair value. The income approach converts future amounts to a current, or discounted, single amount. These fair value measurements are determined on the basis of the value indicated by current market expectations about such future events. Inputs for Level 1 include exchange-listed prices and broker quotes in an active market. Inputs for Level 2 include the last trade price in the case of a halted security, an exchange-listed price which has been adjusted for fair value factors, and prices of closely related securities. Additional Level 2 inputs include an evaluated price which is based upon a compilation of observable market information such as spreads for fixed income and preferred securities. Inputs for Level 3 include, but are not limited to, revenue multiples, earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, discount rates, time to exit and the probabilities of success of certain outcomes. Such unobservable market information may be obtained from a company’s financial statements and from industry studies, market data, and market indicators such as benchmarks and indexes. Because of the inherent uncertainty and often limited markets for restricted securities, the valuations assigned to such securities by the Funds may significantly differ from the valuations that would have been assigned by the Funds had there been an active market for such securities.
Valuation processes are determined by a Valuation Committee (“Committee”) authorized by the Board and comprised of representatives of the Trust’s investment adviser and officers of the Trust. The Committee reports its fair valuation determinations and related valuation information to the Board. The Board is responsible for approving the valuation policy and procedures.
While the Committee meets on an as-needed basis, the Committee generally meets quarterly to review and evaluate the effectiveness of the procedures for making fair value determinations. The Committee considers, among other things, the results of quarterly back testing of the fair value model for foreign securities, pricing comparisons between primary and secondary price sources, the outcome of price challenges put to the Funds’ pricing vendor, and variances between transactional prices and the previous day’s price.
(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars and overnight time deposits.
NOTE 3 — Fair Value Measurements: |
The major categories of securities and their respective fair value inputs are detailed in the Funds’ Schedules of Investments. Based upon the nature, characteristics, and risks associated with their investments as of September 30, 2021, the Funds have determined that presenting them by security type and sector is appropriate.
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THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Alger 35 ETF | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 1,406,829 | $ | 1,406,829 | $ | — | $ | — | ||||||||
Consumer Discretionary | 1,636,408 | 1,636,408 | — | — | ||||||||||||
Energy | 173,826 | 173,826 | — | — | ||||||||||||
Financials | 910,444 | 910,444 | — | — | ||||||||||||
Healthcare | 2,503,207 | 2,503,207 | — | — | ||||||||||||
Industrials | 937,519 | 937,519 | — | — | ||||||||||||
Information Technology | 6,561,037 | 6,561,037 | — | — | ||||||||||||
Real Estate | 440,010 | 440,010 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 14,569,280 | $ | 14,569,280 | $ | — | $ | — | ||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 14,569,280 | $ | 14,569,280 | $ | — | $ | — |
Alger Mid Cap 40 ETF | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 2,853,584 | $ | 2,853,584 | $ | — | $ | — | ||||||||
Consumer Discretionary | 4,308,228 | 4,308,228 | — | — | ||||||||||||
Consumer Staples | 1,067,597 | 1,067,597 | — | — | ||||||||||||
Energy | 925,905 | 925,905 | — | — | ||||||||||||
Financials | 3,702,786 | 3,702,786 | — | — | ||||||||||||
Healthcare | 5,481,960 | 5,481,960 | — | — | ||||||||||||
Industrials | 8,161,938 | 8,161,938 | — | — | ||||||||||||
Information Technology | 8,083,094 | 8,083,094 | — | — | ||||||||||||
Materials | 775,018 | 775,018 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 35,360,110 | $ | 35,360,110 | $ | — | $ | — | ||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 35,360,110 | $ | 35,360,110 | $ | — | $ | — |
Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which approximates fair value for financial statements purposes. As of September 30, 2021, such assets were categorized within the ASC 820 disclosure hierarchy as follows:
TOTAL FUND | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||
Cash and Cash equivalents: | ||||||||||||||||
Alger 35 ETF | $ | 173,208 | $ | — | $ | 173,208 | $ | — | ||||||||
Alger Mid Cap 40 ETF | 3,127,851 | — | 3,127,851 | — | ||||||||||||
Total | $ | 3,301,059 | $ | — | $ | 3,301,059 | $ | — |
NOTE 4 — Derivatives: |
FASB Accounting Standards Codification 815 – Derivatives and Hedging (“ASC 815”) requires qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements.
There were no derivative instruments held by the Fund throughout the period or as of September 30, 2021.
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