THE ALGER ETF TRUST
ALGER 35 ETF
ALGER MID CAP 40 ETF
ALGER WEATHERBIE ENDURING
GROWTH ETF
QUARTERLY REPORT
MARCH 31, 2023
Alger is a signatory to the PRI and carbon neutral.
THE ALGER ETF TRUST | ALGER 35 ETF
Schedule of Investments March 31, 2023 (Unaudited)
COMMON STOCKS—99.6% | SHARES | VALUE | ||||||
ADVERTISING—2.0% | ||||||||
The Trade Desk, Inc., Cl. A* | 3,193 | $ | 194,486 | |||||
AEROSPACE & DEFENSE—4.8% | ||||||||
HEICO Corp. | 2,731 | 467,110 | ||||||
APPLICATION SOFTWARE—3.5% | ||||||||
HubSpot, Inc.* | 458 | 196,367 | ||||||
Paycom Software, Inc.* | 483 | 146,837 | ||||||
343,204 | ||||||||
AUTOMOBILE MANUFACTURERS—4.2% | ||||||||
Rivian Automotive, Inc., Cl. A* | 19,919 | 308,346 | ||||||
Tesla, Inc.* | 479 | 99,373 | ||||||
407,719 | ||||||||
BIOTECHNOLOGY—3.4% | ||||||||
Natera, Inc.* | 6,061 | 336,507 | ||||||
BROADLINE RETAIL—14.3% | ||||||||
Amazon.com, Inc.* | 4,665 | 481,848 | ||||||
JD.com, Inc.# | 7,060 | 309,863 | ||||||
MercadoLibre, Inc.* | 453 | 597,081 | ||||||
1,388,792 | ||||||||
CASINOS & GAMING—2.0% | ||||||||
MGM Resorts International | 4,472 | 198,646 | ||||||
CONSTRUCTION MACHINERY & HEAVY TRANSPORTATION EQUIPMENT—1.5% | ||||||||
Wabtec Corp. | 1,412 | 142,697 | ||||||
CONSTRUCTION MATERIALS—2.6% | ||||||||
Martin Marietta Materials, Inc. | 702 | 249,252 | ||||||
ELECTRONIC EQUIPMENT & INSTRUMENTS—3.1% | ||||||||
908 Devices, Inc.* | 34,738 | 298,747 | ||||||
FOOTWEAR—3.8% | ||||||||
On Holding AG, Cl. A* | 11,916 | 369,753 | ||||||
HEALTHCARE EQUIPMENT—1.9% | ||||||||
TransMedics Group, Inc.* | 2,448 | 185,387 | ||||||
HOTELS RESORTS & CRUISE LINES—9.0% | ||||||||
Booking Holdings, Inc.* | 111 | 294,418 | ||||||
Hilton Worldwide Holdings, Inc. | 1,733 | 244,128 | ||||||
Trip.com Group Ltd.#,* | 8,844 | 333,153 | ||||||
871,699 | ||||||||
INTERACTIVE MEDIA & SERVICES—3.0% | ||||||||
Alphabet, Inc., Cl. A* | 2,864 | 297,083 | ||||||
MOVIES & ENTERTAINMENT—9.1% | ||||||||
Live Nation Entertainment, Inc.* | 3,457 | 241,990 | ||||||
Netflix, Inc.* | 1,362 | 470,544 | ||||||
Spotify Technology SA* | 1,282 | 171,301 | ||||||
883,835 | ||||||||
OIL & GAS EQUIPMENT & SERVICES—3.0% | ||||||||
Schlumberger Ltd. | 5,873 | 288,364 |
THE ALGER ETF TRUST | ALGER 35 ETF
Schedule of Investments March 31, 2023 (Unaudited) (Continued)
COMMON STOCKS—99.6% (CONT.) | SHARES | VALUE | ||||||
PHARMACEUTICALS—1.5% | ||||||||
Catalent, Inc.* | 2,182 | $ | 143,379 | |||||
REAL ESTATE SERVICES—2.0% | ||||||||
FirstService Corp. | 1,398 | 197,104 | ||||||
SEMICONDUCTOR MATERIALS & EQUIPMENT—2.5% | ||||||||
ASML Holding NV# | 363 | 247,098 | ||||||
SEMICONDUCTORS—8.8% | ||||||||
Advanced Micro Devices, Inc.* | 3,000 | 294,030 | ||||||
Analog Devices, Inc. | 989 | 195,051 | ||||||
Marvell Technology, Inc. | 3,913 | 169,433 | ||||||
NVIDIA Corp. | 699 | 194,161 | ||||||
852,675 | ||||||||
SYSTEMS SOFTWARE—7.6% | ||||||||
Crowdstrike Holdings, Inc., Cl. A* | 2,524 | 346,444 | ||||||
Microsoft Corp. | 1,355 | 390,647 | ||||||
737,091 | ||||||||
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—6.0% | ||||||||
Apple, Inc. | 3,528 | 581,767 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $8,984,360) | 9,682,395 | |||||||
Total Investments | ||||||||
(Cost $8,984,360) | 99.6 | % | $ | 9,682,395 | ||||
Unaffiliated Securities (Cost $8,984,360) | 9,682,395 | |||||||
Other Assets in Excess of Liabilities | 0.4 | % | 36,665 | |||||
NET ASSETS | 100.0 | % | $ | 9,719,060 |
* | Non-income producing security. |
# | American Depositary Receipts. |
See Notes to Financial Statements.
THE ALGER ETF TRUST | ALGER MID CAP 40 ETF
Schedule of Investments March 31, 2023 (Unaudited)
COMMON STOCKS—90.9% | SHARES | VALUE | ||||||
AEROSPACE & DEFENSE—9.5% | ||||||||
Axon Enterprise, Inc.* | 4,611 | $ | 1,036,783 | |||||
HEICO Corp., Cl. A | 12,923 | 1,756,236 | ||||||
2,793,019 | ||||||||
APPAREL ACCESSORIES & LUXURY GOODS—1.1% | ||||||||
Lululemon Athletica, Inc.* | 898 | 327,043 | ||||||
APPLICATION SOFTWARE—16.8% | ||||||||
ACI Worldwide, Inc.* | 34,598 | 933,454 | ||||||
Agilysys, Inc.* | 8,873 | 732,111 | ||||||
AppFolio, Inc., Cl. A* | 5,031 | 626,259 | ||||||
Datadog, Inc., Cl. A* | 7,414 | 538,701 | ||||||
Everbridge, Inc.* | 19,443 | 674,089 | ||||||
Manhattan Associates, Inc.* | 3,021 | 467,802 | ||||||
Synopsys, Inc.* | 1,224 | 472,770 | ||||||
Workday, Inc., Cl. A* | 2,268 | 468,433 | ||||||
4,913,619 | ||||||||
BIOTECHNOLOGY—13.7% | ||||||||
Cabaletta Bio, Inc.* | 68,387 | 565,560 | ||||||
Celldex Therapeutics, Inc.* | 17,865 | 642,783 | ||||||
Madrigal Pharmaceuticals, Inc.* | 2,810 | 680,751 | ||||||
Natera, Inc.* | 22,427 | 1,245,147 | ||||||
RAPT Therapeutics, Inc.* | 25,859 | 474,513 | ||||||
Vaxcyte, Inc.* | 10,798 | 404,709 | ||||||
4,013,463 | ||||||||
BROADLINE RETAIL—1.8% | ||||||||
MercadoLibre, Inc.* | 398 | 524,588 | ||||||
CARGO GROUND TRANSPORTATION—1.3% | ||||||||
Old Dominion Freight Line, Inc. | 1,141 | 388,899 | ||||||
CASINOS & GAMING—3.0% | ||||||||
Las Vegas Sands Corp.* | 15,245 | 875,825 | ||||||
DIVERSIFIED METALS & MINING—1.0% | ||||||||
MP Materials Corp.* | 10,596 | 298,701 | ||||||
ENVIRONMENTAL & FACILITIES SERVICES—1.0% | ||||||||
GFL Environmental, Inc. | 8,910 | 306,860 | ||||||
FOOTWEAR—1.7% | ||||||||
On Holding AG, Cl. A* | 15,594 | 483,882 | ||||||
HEALTHCARE EQUIPMENT—8.8% | ||||||||
GE HealthCare Technologies, Inc.* | 12,167 | 998,059 | ||||||
Heska Corp.* | 11,938 | 1,165,388 | ||||||
iRhythm Technologies, Inc.* | 3,467 | 430,012 | ||||||
2,593,459 | ||||||||
HEALTHCARE SUPPLIES—0.7% | ||||||||
Neogen Corp.* | 11,571 | 214,295 | ||||||
HOTELS RESORTS & CRUISE LINES—1.1% | ||||||||
Booking Holdings, Inc.* | 123 | 326,246 | ||||||
INTERNET SERVICES & INFRASTRUCTURE—4.2% | ||||||||
MongoDB, Inc., Cl. A* | 1,819 | 424,045 | ||||||
Okta, Inc., Cl. A* | 9,275 | 799,876 | ||||||
1,223,921 |
THE ALGER ETF TRUST | ALGER MID CAP 40 ETF
Schedule of Investments March 31, 2023 (Unaudited) (Continued)
COMMON STOCKS—90.9% (CONT.) | SHARES | VALUE | ||||||
LIFE SCIENCES TOOLS & SERVICES—2.6% | ||||||||
Illumina, Inc.* | 3,284 | $ | 763,694 | |||||
MOVIES & ENTERTAINMENT—5.6% | ||||||||
Liberty Media Corp.-Liberty Formula One, Cl. C* | 22,105 | 1,654,117 | ||||||
OIL & GAS EXPLORATION & PRODUCTION—4.0% | ||||||||
Diamondback Energy, Inc. | 8,571 | 1,158,542 | ||||||
PHARMACEUTICALS—1.8% | ||||||||
Ventyx Biosciences, Inc.* | 15,341 | 513,924 | ||||||
SEMICONDUCTOR MATERIALS & EQUIPMENT—4.4% | ||||||||
Entegris, Inc. | 7,403 | 607,120 | ||||||
SolarEdge Technologies, Inc.* | 2,278 | 692,398 | ||||||
1,299,518 | ||||||||
SEMICONDUCTORS—4.1% | ||||||||
Impinj, Inc.* | 4,650 | 630,168 | ||||||
NVIDIA Corp. | 2,065 | 573,595 | ||||||
1,203,763 | ||||||||
SYSTEMS SOFTWARE—2.7% | ||||||||
Crowdstrike Holdings, Inc., Cl. A* | 3,006 | 412,603 | ||||||
CyberArk Software Ltd.* | 2,567 | 379,865 | ||||||
792,468 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $24,789,591) | 26,669,846 | |||||||
Total Investments | ||||||||
(Cost $24,789,591) | 90.9 | % | $ | 26,669,846 | ||||
Unaffiliated Securities (Cost $24,789,591) | 26,669,846 | |||||||
Other Assets in Excess of Liabilities | 9.1 | % | 2,666,058 | |||||
NET ASSETS | 100.0 | % | $ | 29,335,904 |
* | Non-income producing security. |
See Notes to Financial Statements.
THE ALGER ETF TRUST | ALGER WEATHERBIE ENDURING GROWTH ETF
Schedule of Investments March 31, 2023 (Unaudited)
COMMON STOCKS—92.0% | SHARES | VALUE | ||||||
ADVERTISING—1.3% | ||||||||
The Trade Desk, Inc., Cl. A* | 650 | 39,592 | ||||||
AEROSPACE & DEFENSE—8.5% | ||||||||
TransDigm Group, Inc. | 363 | 267,549 | ||||||
APPLICATION SOFTWARE—16.8% | ||||||||
HubSpot, Inc.* | 270 | 115,763 | ||||||
Paylocity Holding Corp.* | 985 | 195,798 | ||||||
SPS Commerce, Inc.* | 844 | 128,541 | ||||||
Vertex, Inc., Cl. A* | 4,368 | 90,374 | ||||||
530,476 | ||||||||
ASSET MANAGEMENT & CUSTODY BANKS—4.4% | ||||||||
Hamilton Lane, Inc., Cl. A | 1,122 | 83,005 | ||||||
StepStone Group, Inc., Cl. A | 2,340 | 56,792 | ||||||
139,797 | ||||||||
BROADLINE RETAIL—2.1% | ||||||||
Ollie's Bargain Outlet Holdings, Inc.* | 1,145 | 66,341 | ||||||
CARGO GROUND TRANSPORTATION—2.5% | ||||||||
RXO, Inc.* | 2,080 | 40,851 | ||||||
XPO, Inc.* | 1,170 | 37,323 | ||||||
78,174 | ||||||||
EDUCATION SERVICES—3.8% | ||||||||
Chegg, Inc.* | 7,280 | 118,664 | ||||||
ENVIRONMENTAL & FACILITIES SERVICES—23.8% | ||||||||
Casella Waste Systems, Inc., Cl. A* | 3,797 | 313,860 | ||||||
Montrose Environmental Group, Inc.* | 3,380 | 120,564 | ||||||
Waste Connections, Inc. | 2,283 | 317,497 | ||||||
751,921 | ||||||||
HEALTHCARE EQUIPMENT—4.4% | ||||||||
Insulet Corp.* | 186 | 59,327 | ||||||
Nevro Corp.* | 2,210 | 79,891 | ||||||
139,218 | ||||||||
HEALTHCARE SERVICES—2.2% | ||||||||
Agiliti, Inc.* | 4,339 | 69,337 | ||||||
HEALTHCARE TECHNOLOGY—0.9% | ||||||||
Definitive Healthcare Corp., Cl. A* | 2,860 | 29,544 | ||||||
MANAGED HEALTHCARE—4.3% | ||||||||
Progyny, Inc.* | 4,238 | 136,125 | ||||||
OIL & GAS EQUIPMENT & SERVICES—3.7% | ||||||||
Core Laboratories NV | 5,229 | 115,300 | ||||||
REAL ESTATE SERVICES—9.0% | ||||||||
FirstService Corp. | 2,024 | 285,364 | ||||||
TRADING COMPANIES & DISTRIBUTORS—3.0% | ||||||||
SiteOne Landscape Supply, Inc.* | 679 | 92,935 | ||||||
TRANSACTION & PAYMENT PROCESSING SERVICES—1.3% | ||||||||
Flywire Corp.* | 1,381 | 40,546 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $2,824,632) | 2,900,883 |
THE ALGER ETF TRUST | ALGER WEATHERBIE ENDURING GROWTH ETF
Schedule of Investments March 31, 2023 (Unaudited) (Continued)
VALUE | ||||||||
Total Investments | ||||||||
(Cost $2,824,632) | 92.0 | % | $ | 2,900,883 | ||||
Unaffiliated Securities (Cost $2,824,632) | 2,900,883 | |||||||
Other Assets in Excess of Liabilities | 8.0 | % | 253,729 | |||||
NET ASSETS | 100.0 | % | $ | 3,154,612 |
* | Non-income producing security. |
See Notes to Financial Statements.
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, the Alger Mid Cap 40 ETF and the Alger Weatherbie Enduring Growth 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.
Alger Weatherbie Enduring Growth ETF launched on March 7, 2023.
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).
The Board has designated, pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Funds’ investment adviser, Fred Alger Management, LLC (“Alger Management” or the “Investment Manager”) as their valuation designee (the “Valuation Designee”) to make fair value determinations subject to the Board’s review and oversight. The Valuation Designee has established a Valuation Committee (“Committee”) comprised of representatives of the Investment Manager and officers of the Funds to assist in performing the duties and responsibilities of the Valuation Designee.
The Valuation Designee has established valuation processes including but not limited to: (i) making fair value determinations when market quotations for financial instruments are not readily available in accordance with valuation policies and procedures adopted by the Board; (ii) assessing and managing material risks associated with fair valuation determinations; (iii) selecting, applying and testing fair valuation methodologies; and (iv) overseeing and evaluating pricing services used by the Funds. The Valuation Designee reports its fair valuation determinations and related valuation information to the Board. The Committee generally meets quarterly and on a as-needed basis to review and evaluate the effectiveness of the valuation policies and procedures in accordance with the requirements of Rule 2a-5.
Investments in money market funds and short-term securities held by the Funds having a remaining maturity of sixty days or less are valued at amortized cost which approximates market value.
Equity securities, including traded rights, warrants and option contracts for which valuation information is readily available, 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.
THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Securities in which the Funds invest may be traded in foreign markets that close before the close of the NYSE. Developments that occur between the close of the foreign markets and the close of the NYSE may result in adjustments to the closing foreign prices to reflect what the Valuation Designee, through its Committee, believes to be the fair value of these securities as of the close of the NYSE. The Funds may also fair value securities in other situations, for example, when a particular foreign market is closed but the Funds are open.
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.) |
• | 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. The Funds cannot invest in Level 2 and Level 3 securities.
(b) Cash and Cash Equivalents: Cash and cash equivalents include U.S. dollars, U.S. Treasury securities, government money market funds, and repurchase agreements.
THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
NOTE 3 — Fair Value Measurements:
The following is a summary of the inputs used as of March 31, 2023, in valuing the Funds’ investments carried at fair value on a recurring basis. Based upon the nature, characteristics, and risks associated with their investments, 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 | $ | 1,375,404 | $ | 1,375,404 | $ | — | $ | — | ||||||||
Consumer Discretionary | 3,236,609 | 3,236,609 | — | — | ||||||||||||
Energy | 288,364 | 288,364 | — | — | ||||||||||||
Healthcare | 665,273 | 665,273 | — | — | ||||||||||||
Industrials | 609,807 | 609,807 | — | — | ||||||||||||
Information Technology | 3,060,582 | 3,060,582 | — | — | ||||||||||||
Materials | 249,252 | 249,252 | — | — | ||||||||||||
Real Estate | 197,104 | 197,104 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 9,682,395 | $ | 9,682,395 | $ | — | $ | — | ||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 9,682,395 | $ | 9,682,395 | $ | — | $ | — |
Alger Mid Cap 40 ETF | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | 1,654,117 | 1,654,117 | — | — | ||||||||||||
Consumer Discretionary | 2,537,584 | 2,537,584 | — | — | ||||||||||||
Energy | 1,158,542 | 1,158,542 | — | — | ||||||||||||
Healthcare | 8,098,835 | 8,098,835 | — | — | ||||||||||||
Industrials | 3,488,778 | 3,488,778 | — | — | ||||||||||||
Information Technology | 9,433,289 | 9,433,289 | — | — | ||||||||||||
Materials | 298,701 | 298,701 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 26,669,846 | $ | 26,669,846 | $ | — | $ | — | ||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 26,669,846 | $ | 26,669,846 | $ | — | $ | — | ||||||||
Alger Weatherbie Enduring Growth | ||||||||||||||||
ETF | TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | ||||||||||||
COMMON STOCKS | ||||||||||||||||
Communication Services | 39,592 | 39,592 | — | — | ||||||||||||
Consumer Discretionary | 185,005 | 185,005 | — | — | ||||||||||||
Energy | 115,300 | 115,300 | — | — | ||||||||||||
Financials | 180,343 | 180,343 | — | — | ||||||||||||
Healthcare | 374,224 | 374,224 | — | — | ||||||||||||
Industrials | 1,190,579 | 1,190,579 | — | — | ||||||||||||
Information Technology | 530,476 | 530,476 | — | — | ||||||||||||
Real Estate | 285,364 | 285,364 | — | — | ||||||||||||
TOTAL COMMON STOCKS | $ | 2,900,883 | $ | 2,900,883 | $ | — | $ | — | ||||||||
TOTAL INVESTMENTS IN SECURITIES | $ | 2,900,883 | $ | 2,900,883 | $ | — | $ | — |
THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
Certain of the Funds’ assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes. As of March 31, 2023, such assets were categorized within the ASC 820 disclosure hierarchy as follows:
TOTAL | LEVEL 1 | LEVEL 2 | LEVEL 3 | |||||||||||||
Cash and cash equivalents | ||||||||||||||||
Alger 35 ETF | $ | 150,018 | $ | — | $ | 150,018 | $ | — | ||||||||
Alger Mid Cap 40 ETF | 2,781,407 | — | 2,781,407 | — | ||||||||||||
Alger Weatherbie Enduring Growth ETF | 247,075 | — | 247,075 | — |