THE ALGER ETF TRUST
QUARTERLY REPORT
March 31, 2022
THE ALGER ETF TRUST | ALGER 35 ETF |
Schedule of Investments March 31, 2022 (Unaudited) |
COMMON STOCKS—96.4% | SHARES | VALUE | ||||||
AEROSPACE & DEFENSE—5.1% | ||||||||
HEICO Corp. | 3,621 | $ | 555,968 | |||||
APPLICATION SOFTWARE—2.1% | ||||||||
Datadog, Inc., Cl. A* | 1,527 | 231,295 | ||||||
BIOTECHNOLOGY—3.4% | ||||||||
AbbVie, Inc. | 913 | 148,006 | ||||||
Natera, Inc.* | 5,541 | 225,408 | ||||||
373,414 | ||||||||
CASINOS & GAMING—2.4% | ||||||||
MGM Resorts International | 6,090 | 255,415 | ||||||
CONSUMER FINANCE—0.9% | ||||||||
Upstart Holdings, Inc.* | 909 | 99,163 | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—3.3% | ||||||||
Block, Inc., Cl. A* | 1,947 | 264,013 | ||||||
Marqeta, Inc., Cl. A* | 8,705 | 96,103 | ||||||
360,116 | ||||||||
FINANCIAL EXCHANGES & DATA—2.9% | ||||||||
S&P Global, Inc. | 772 | 316,659 | ||||||
HEALTHCARE EQUIPMENT—5.3% | ||||||||
Dexcom, Inc.* | 446 | 228,174 | ||||||
Intuitive Surgical, Inc.* | 1,159 | 349,647 | ||||||
577,821 | ||||||||
HEALTHCARE TECHNOLOGY—2.3% | ||||||||
Veeva Systems, Inc., Cl. A* | 1,172 | 249,003 | ||||||
HYPERMARKETS & SUPER CENTERS—2.1% | ||||||||
Costco Wholesale Corp. | 386 | 222,278 | ||||||
INTERACTIVE MEDIA & SERVICES—4.7% | ||||||||
Alphabet, Inc., Cl. C* | 183 | 511,117 | ||||||
INTERNET & DIRECT MARKETING RETAIL—5.2% | ||||||||
Amazon.com, Inc.* | 172 | 560,711 | ||||||
INTERNET SERVICES & INFRASTRUCTURE—3.8% | ||||||||
MongoDB, Inc., Cl. A* | 382 | 169,451 | ||||||
Shopify, Inc., Cl. A* | 353 | 238,614 | ||||||
408,065 | ||||||||
LEISURE FACILITIES—2.0% | ||||||||
Vail Resorts, Inc. | 849 | 220,969 | ||||||
LIFE SCIENCES TOOLS & SERVICES—3.1% | ||||||||
Bio-Techne Corp. | 781 | 338,204 | ||||||
MOVIES & ENTERTAINMENT—4.3% | ||||||||
Live Nation Entertainment, Inc.* | 1,813 | 213,281 | ||||||
Netflix, Inc.* | 287 | 107,507 | ||||||
The Walt Disney Co.* | 1,071 | 146,899 | ||||||
467,687 | ||||||||
OIL & GAS EQUIPMENT & SERVICES—1.5% | ||||||||
ChampionX Corp.* | 6,404 | 156,770 | ||||||
OIL & GAS EXPLORATION & PRODUCTION—4.6% | ||||||||
Diamondback Energy, Inc. | 3,631 | 497,738 | ||||||
PHARMACEUTICALS—2.1% | ||||||||
Catalent, Inc.* | 2,035 | 225,682 |
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THE ALGER ETF TRUST | ALGER 35 ETF |
Schedule of Investments March 31, 2022 (Unaudited) (Continued) |
COMMON STOCKS—96.4% (CONT.) | SHARES | VALUE | ||||||
REAL ESTATE SERVICES—2.4% | ||||||||
FirstService Corp. | 1,789 | $ | 259,190 | |||||
REGIONAL BANKS—3.4% | ||||||||
Signature Bank | 1,251 | 367,156 | ||||||
SEMICONDUCTOR EQUIPMENT—7.6% | ||||||||
Applied Materials, Inc. | 3,882 | 511,647 | ||||||
SolarEdge Technologies, Inc.* | 978 | 315,278 | ||||||
826,925 | ||||||||
SEMICONDUCTORS—5.9% | ||||||||
Advanced Micro Devices, Inc.* | 3,782 | 413,524 | ||||||
NVIDIA Corp. | 821 | 224,018 | ||||||
637,542 | ||||||||
SYSTEMS SOFTWARE—8.9% | ||||||||
Crowdstrike Holdings, Inc., Cl. A* | 1,017 | 230,941 | ||||||
Microsoft Corp. | 2,391 | 737,169 | ||||||
968,110 | ||||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—7.1% | ||||||||
Apple, Inc. | 4,427 | 772,999 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $10,444,517) | 10,459,997 | |||||||
REAL ESTATE INVESTMENT TRUST—2.2% | SHARES | VALUE | ||||||
SPECIALIZED—2.2% | ||||||||
Crown Castle International Corp. | 1,285 | 237,211 | ||||||
(Cost $254,728) | 237,211 | |||||||
Total Investments | ||||||||
(Cost $10,699,245) | 98.6 | % | $ | 10,697,208 | ||||
Unaffiliated Securities (Cost $10,699,245) | 10,697,208 | |||||||
Other Assets in Excess of Liabilities | 1.4 | % | 148,180 | |||||
NET ASSETS | 100.0 | % | $ | 10,845,388 |
* | 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 March 31, 2022 (Unaudited) |
COMMON STOCKS—91.0% | SHARES | VALUE | ||||||
AEROSPACE & DEFENSE—7.6% | ||||||||
HEICO Corp., Cl. A | 10,702 | $ | 1,357,335 | |||||
Mercury Systems, Inc.* | 15,233 | 981,767 | ||||||
2,339,102 | ||||||||
AIR FREIGHT & LOGISTICS—1.9% | ||||||||
GXO Logistics, Inc.* | 8,272 | 590,124 | ||||||
APPLICATION SOFTWARE—7.1% | ||||||||
Atlassian Corp. PLC, Cl. A* | 1,894 | 556,514 | ||||||
Datadog, Inc., Cl. A* | 5,345 | 809,607 | ||||||
Everbridge, Inc.* | 13,020 | 568,193 | ||||||
nCino, Inc.* | 5,901 | 241,823 | ||||||
2,176,137 | ||||||||
AUTOMOTIVE RETAIL—2.9% | ||||||||
O'Reilly Automotive, Inc.* | 1,284 | 879,489 | ||||||
CASINOS & GAMING—3.9% | ||||||||
MGM Resorts International | 28,248 | 1,184,721 | ||||||
CONSTRUCTION & ENGINEERING—3.2% | ||||||||
Ameresco, Inc., Cl. A* | 12,478 | 992,001 | ||||||
CONSUMER FINANCE—1.5% | ||||||||
Upstart Holdings, Inc.* | 4,259 | 464,614 | ||||||
DATA PROCESSING & OUTSOURCED SERVICES—1.7% | ||||||||
TaskUS, Inc., Cl. A* | 13,172 | 506,595 | ||||||
ELECTRICAL COMPONENTS & EQUIPMENT—3.8% | ||||||||
ChargePoint Holdings, Inc.* | 19,210 | 381,895 | ||||||
Generac Holdings, Inc.* | 2,670 | 793,684 | ||||||
1,175,579 | ||||||||
ENVIRONMENTAL & FACILITIES SERVICES—2.0% | ||||||||
Casella Waste Systems, Inc., Cl. A* | 7,141 | 625,909 | ||||||
FOOD DISTRIBUTORS—2.5% | ||||||||
US Foods Holding Corp.* | 20,240 | 761,631 | ||||||
HOMEFURNISHING RETAIL—0.6% | ||||||||
RH* | 521 | 169,893 | ||||||
HOTELS RESORTS & CRUISE LINES—3.3% | ||||||||
Airbnb, Inc., Cl. A* | 4,532 | 778,416 | ||||||
Vacasa, Inc., Cl. A* | 28,079 | 232,214 | ||||||
1,010,630 | ||||||||
INDUSTRIAL MACHINERY—1.1% | ||||||||
Helios Technologies, Inc. | 4,196 | 336,729 | ||||||
INTERACTIVE MEDIA & SERVICES—2.7% | ||||||||
ZoomInfo Technologies, Inc., Cl. A* | 14,097 | 842,155 | ||||||
INTERNET & DIRECT MARKETING RETAIL—1.2% | ||||||||
Overstock.com, Inc.* | 8,608 | 378,795 | ||||||
INTERNET SERVICES & INFRASTRUCTURE—2.2% | ||||||||
VeriSign, Inc.* | 3,102 | 690,071 | ||||||
LIFE SCIENCES TOOLS & SERVICES—5.4% | ||||||||
Bio-Techne Corp. | 2,076 | 898,991 | ||||||
Quanterix Corp.* | 11,859 | 346,164 | ||||||
SomaLogic, Inc.* | 51,492 | 412,966 | ||||||
1,658,121 |
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THE ALGER ETF TRUST | ALGER MID CAP 40 ETF |
Schedule of Investments March 31, 2022 (Unaudited) (Continued) |
COMMON STOCKS—91.0% (CONT.) | SHARES | VALUE | ||||||
MOVIES & ENTERTAINMENT—2.5% | ||||||||
Live Nation Entertainment, Inc.* | 6,544 | $ | 769,836 | |||||
OIL & GAS EQUIPMENT & SERVICES—2.7% | ||||||||
Baker Hughes Co., Cl. A | 22,788 | 829,711 | ||||||
OIL & GAS EXPLORATION & PRODUCTION—4.1% | ||||||||
Diamondback Energy, Inc. | 9,184 | 1,258,943 | ||||||
REGIONAL BANKS—3.9% | ||||||||
Signature Bank | 4,066 | 1,193,330 | ||||||
SEMICONDUCTOR EQUIPMENT—4.6% | ||||||||
Azenta, Inc. | 9,406 | 779,569 | ||||||
SolarEdge Technologies, Inc.* | 1,964 | 633,135 | ||||||
1,412,704 | ||||||||
SEMICONDUCTORS—6.2% | ||||||||
Advanced Micro Devices, Inc.* | 5,985 | 654,400 | ||||||
Marvell Technology, Inc. | 9,692 | 695,013 | ||||||
Universal Display Corp. | 3,352 | 559,617 | ||||||
1,909,030 | ||||||||
SPECIALTY STORES—2.6% | ||||||||
Petco Health & Wellness Co., Inc., Cl. A* | 40,991 | 802,194 | ||||||
SYSTEMS SOFTWARE—4.4% | ||||||||
Crowdstrike Holdings, Inc., Cl. A* | 3,009 | 683,284 | ||||||
Palo Alto Networks, Inc.* | 1,085 | 675,423 | ||||||
1,358,707 | ||||||||
TRADING COMPANIES & DISTRIBUTORS—3.5% | ||||||||
Herc Holdings, Inc. | 6,413 | 1,071,548 | ||||||
TRUCKING—1.9% | ||||||||
XPO Logistics, Inc.* | 8,048 | 585,894 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $27,141,221) | 27,974,193 | |||||||
Total Investments | ||||||||
(Cost $27,141,221) | 91.0 | % | $ | 27,974,193 | ||||
Unaffiliated Securities (Cost $27,141,221) | 27,974,193 | |||||||
Other Assets in Excess of Liabilities | 9.0 | % | 2,758,781 | |||||
NET ASSETS | 100.0 | % | $ | 30,732,974 |
* | 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. The Alger 35 ETF and the Alger Mid Cap 40 ETF are each 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. Shares of each Fund are listed for trading on the NYSE Arca, Inc.
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.
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THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
• | 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.) |
• | 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 meetings are held 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, 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.
In December 2020, the Securities and Exchange Commission adopted Rule 2a-5, Good Faith Determinations of Fair Value, under the 1940 Act, which is intended to address valuation practices and the role of the board of directors with respect to the fair value of the investments of a registered investment company. Among other things, Rule 2a-5 will permit the Funds’ Board to designate the Funds’ primary investment adviser to perform the Funds’ fair value determinations, which will be subject to the Board’s oversight and certain reporting and other requirements intended to ensure that the Board receives the information it needs to oversee the investment adviser’s fair value determinations. Compliance with Rule 2a-5 will not be required until September 2022. The Adviser continues to review Rule 2a-5 and its impact on the Adviser’s and the Funds’ valuation policies and related practices.
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(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 March 31, 2022, the Funds have determined that presenting them by security type and sector is appropriate.
Alger 35 ETF | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | $ | 978,804 | $ | 978,804 | $ | — | $ | — | ||||||||
Consumer Discretionary | 1,037,095 | 1,037,095 | — | — | ||||||||||||
Consumer Staples | 222,278 | 222,278 | — | — | ||||||||||||
Energy | 654,508 | 654,508 | — | — | ||||||||||||
Financials | 782,978 | 782,978 | — | — | ||||||||||||
Healthcare | 1,764,124 | 1,764,124 | — | — | ||||||||||||
Industrials | 555,968 | 555,968 | — | — | ||||||||||||
Information Technology | 4,205,052 | 4,205,052 | — | — | ||||||||||||
Real Estate | 259,190 | 259,190 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 10,459,997 | $ | 10,459,997 | $ | — | $ | — | ||||||||
REAL ESTATE INVESTMENT TRUST | ||||||||||||||||
Real Estate | 237,211 | 237,211 | — | — | ||||||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 10,697,208 | $ | 10,697,208 | $ | — | $ | — |
Alger Mid Cap 40 ETF | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | 1,611,991 | 1,611,991 | — | — | ||||||||||||
Consumer Discretionary | 4,425,722 | 4,425,722 | — | — | ||||||||||||
Consumer Staples | 761,631 | 761,631 | — | — | ||||||||||||
Energy | 2,088,654 | 2,088,654 | — | — | ||||||||||||
Financials | 1,657,944 | 1,657,944 | — | — | ||||||||||||
Healthcare | 1,658,121 | 1,658,121 | — | — | ||||||||||||
Industrials | 7,716,886 | 7,716,886 | — | — | ||||||||||||
Information Technology | 8,053,244 | 8,053,244 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 27,974,193 | $ | 27,974,193 | $ | — | $ | — | ||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 27,974,193 | $ | 27,974,193 | $ | — | $ | — |
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 March 31, 2022, such assets were categorized within the ASC 820 disclosure hierarchy as follows:
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THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
TOTAL FUND | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||
Cash, Foreign cash and Cash equivalents: | |||||||||||||
Alger 35 ETF | $ | 144,519 | $ | — | $ | 144,519 | $ | — | |||||
Alger Mid Cap 40 ETF | 2,571,331 | — | 2,571,331 | — |
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