NPORT-EX 2 ef20015113_algeretftrust.htm SOI

THE ALGER ETF TRUST

ALGER 35 ETF
ALGER MID CAP 40 ETF
ALGER WEATHERBIE ENDURING GROWTH ETF

QUARTERLY REPORT
SEPTEMBER 30, 2023 (UNAUDITED)
THE ALGER ETF TRUST ALGER 35 ETF ALGER MID CAP 40 ETF ALGER WEATHERBIE ENDURING GROWTH ETF QUARTERLY REPORT SEPTEMBER 30, 2023 (UNAUDITED)
 
THE ALGER ETF TRUST | ALGER 35 ETF
Schedule of Investments September 30, 2023 (Unaudited)
 
COMMON STOCKS—93.8%
  
SHARES
    
VALUE
  
ADVERTISING—1.7%
                
The Trade Desk, Inc., Cl. A*
    
2,710
    
$
211,786
  
AEROSPACE & DEFENSE—2.0%
                
HEICO Corp., Cl. A
    
1,965
      
253,917
  
APPAREL RETAIL—1.5%
                
Burlington Stores, Inc.*
    
1,392
      
188,338
  
APPLICATION SOFTWARE—4.2%
                
AppFolio, Inc., Cl. A*
    
2,880
      
525,974
  
AUTOMOBILE MANUFACTURERS—2.6%
                
Rivian Automotive, Inc., Cl. A*
    
8,356
      
202,884
  
Tesla, Inc.*
    
497
      
124,359
  
 
            
327,243
  
BIOTECHNOLOGY—5.0%
                
Amgen, Inc.
    
966
      
259,622
  
Cabaletta Bio, Inc.*
    
24,260
      
369,237
  
 
            
628,859
  
BROADLINE RETAIL—6.9%
                
Amazon.com, Inc.*
    
3,915
      
497,675
  
MercadoLibre, Inc.*
    
292
      
370,221
  
 
            
867,896
  
CABLE & SATELLITE—2.0%
                
Charter Communications, Inc., Cl. A*
    
563
      
247,619
  
CASINOS & GAMING—3.0%
                
DraftKings, Inc., Cl. A*
    
12,908
      
380,012
  
COMMUNICATIONS EQUIPMENT—2.5%
                
Arista Networks, Inc.*
    
1,747
      
321,326
  
ELECTRONIC EQUIPMENT & INSTRUMENTS—1.6%
                
908 Devices, Inc.*
    
31,179
      
207,652
  
HOTELS RESORTS & CRUISE LINES—3.9%
                
Booking Holdings, Inc.*
    
43
      
132,610
  
Lindblad Expeditions Holdings, Inc.*
    
49,440
      
355,968
  
 
            
488,578
  
INTERACTIVE MEDIA & SERVICES—16.1%
                
Alphabet, Inc., Cl. A*
    
2,877
      
376,484
  
Match Group, Inc.*
    
6,022
      
235,912
  
Meta Platforms, Inc., Cl. A*
    
3,017
      
905,733
  
Pinterest, Inc., Cl. A*
    
18,928
      
511,624
  
 
            
2,029,753
  
INTERNET SERVICES & INFRASTRUCTURE—2.0%
                
MongoDB, Inc., Cl. A*
    
487
      
168,434
  
Shopify, Inc., Cl. A*
    
1,673
      
91,295
  
 
            
259,729
  
MOVIES & ENTERTAINMENT—3.5%
                
Netflix, Inc.*
    
842
      
317,939
  
Spotify Technology SA*
    
799
      
123,558
  
 
            
441,497
  

-2-
THE ALGER ETF TRUST | ALGER 35 ETF
Schedule of Investments September 30, 2023 (Unaudited) (Continued)
 
COMMON STOCKS—93.8% (CONT.)
  
SHARES
    
VALUE
  
OIL & GAS EQUIPMENT & SERVICES—5.1%
            
Schlumberger NV
    
10,990
    
$
640,717
  
OIL & GAS EXPLORATION & PRODUCTION—4.2%
                
Pioneer Natural Resources Co.
    
2,340
      
537,147
  
PHARMACEUTICALS—4.0%
                
Eli Lilly & Co.
    
946
      
508,125
  
SEMICONDUCTORS—11.5%
                
Marvell Technology, Inc.
    
2,432
      
131,644
  
NVIDIA Corp.
    
2,737
      
1,190,568
  
Rambus, Inc.*
    
2,262
      
126,197
  
 
            
1,448,409
  
SYSTEMS SOFTWARE—10.5%
                
Microsoft Corp.
    
2,964
      
935,883
  
Zscaler, Inc.*
    
2,527
      
393,176
  
 
            
1,329,059
  
TOTAL COMMON STOCKS
                
(Cost $11,373,132)
            
11,843,636
  
Total Investments
                
(Cost $11,373,132)
    
93.8
%
  
$
11,843,636
  
Unaffiliated Securities (Cost $11,373,132)
            
11,843,636
  
Other Assets in Excess of Liabilities
    
6.2
%
    
779,704
  
NET ASSETS
    
100.0
%
  
$
12,623,340
  

* Non-income producing security.

See Notes to Financial Statements.

-3-
THE ALGER ETF TRUST | ALGER MID CAP 40 ETF
Schedule of Investments September 30, 2023 (Unaudited)

COMMON STOCKS—91.3%
  
SHARES
    
VALUE
  
ADVERTISING—3.4%
            
The Trade Desk, Inc., Cl. A*
    
11,742
    
$
917,637
  
AEROSPACE & DEFENSE—6.8%
                
HEICO Corp., Cl. A
    
9,394
      
1,213,893
  
TransDigm Group, Inc.*
    
708
      
596,936
  
 
            
1,810,829
  
APPLICATION SOFTWARE—16.2%
                
AppFolio, Inc., Cl. A*
    
5,692
      
1,039,530
  
Datadog, Inc., Cl. A*
    
8,592
      
782,645
  
Manhattan Associates, Inc.*
    
5,878
      
1,161,845
  
Procore Technologies, Inc.*
    
5,087
      
332,283
  
PTC, Inc.*
    
3,364
      
476,612
  
Synopsys, Inc.*
    
1,150
      
527,815
  
 
            
4,320,730
  
AUTOMOTIVE PARTS & EQUIPMENT—2.5%
                
Mobileye Global, Inc., Cl. A*
    
15,758
      
654,745
  
BIOTECHNOLOGY—17.9%
                
Apellis Pharmaceuticals, Inc.*
    
2,949
      
112,180
  
Cabaletta Bio, Inc.*
    
39,746
      
604,934
  
Exact Sciences Corp.*
    
10,846
      
739,914
  
Madrigal Pharmaceuticals, Inc.*
    
2,970
      
433,739
  
Natera, Inc.*
    
20,847
      
922,480
  
Neurocrine Biosciences, Inc.*
    
4,740
      
533,250
  
Sarepta Therapeutics, Inc.*
    
6,924
      
839,327
  
Vaxcyte, Inc.*
    
11,064
      
564,043
  
 
            
4,749,867
  
BROADLINE RETAIL—1.2%
                
MercadoLibre, Inc.*
    
256
      
324,577
  
CARGO GROUND TRANSPORTATION—3.8%
                
Old Dominion Freight Line, Inc.
    
1,645
      
673,035
  
Saia, Inc.*
    
819
      
326,495
  
 
            
999,530
  
CASINOS & GAMING—2.8%
                
DraftKings, Inc., Cl. A*
    
24,872
      
732,232
  
ELECTRICAL COMPONENTS & EQUIPMENT—4.3%
                
Vertiv Holdings Co., Cl. A
    
30,506
      
1,134,823
  
ENVIRONMENTAL & FACILITIES SERVICES—2.0%
                
Waste Connections, Inc.
    
3,882
      
521,353
  
HEALTH CARE DISTRIBUTORS—2.1%
                
McKesson Corp.
    
1,285
      
558,782
  
HEALTH CARE EQUIPMENT—2.2%
                
Shockwave Medical, Inc.*
    
2,884
      
574,204
  
HEALTH CARE SUPPLIES—0.8%
                
Align Technology, Inc.*
    
731
      
223,189
  
HOMEBUILDING—1.2%
                
NVR, Inc.*
    
54
      
322,018
  
INDUSTRIAL MACHINERY & SUPPLIES & COMPONENTS—2.1%
                
Helios Technologies, Inc.
    
10,262
      
569,336
  

-4-
THE ALGER ETF TRUST | ALGER MID CAP 40 ETF
Schedule of Investments September 30, 2023 (Unaudited) (Continued)

COMMON STOCKS—91.3% (CONT.)
  
SHARES
    
VALUE
  
INTERACTIVE MEDIA & SERVICES—1.6%
                
Pinterest, Inc., Cl. A*
    
15,395
    
$
416,127
  
INTERNET SERVICES & INFRASTRUCTURE—1.4%
                
Snowflake, Inc., Cl. A*
    
2,467
      
376,883
  
MOVIES & ENTERTAINMENT—4.8%
                
Liberty Media Corp. Series C Liberty Formula One*
    
20,481
      
1,275,966
  
OIL & GAS EXPLORATION & PRODUCTION—2.1%
                
Diamondback Energy, Inc.
    
3,552
      
550,134
  
PERSONAL CARE PRODUCTS—1.6%
                
e.l.f. Beauty, Inc.*
    
3,931
      
431,742
  
SEMICONDUCTORS—2.7%
                
indie Semiconductor, Inc., Cl. A*
    
32,972
      
207,724
  
Monolithic Power Systems, Inc.
    
1,121
      
517,902
  
 
            
725,626
  
SOFT DRINKS & NON-ALCOHOLIC BEVERAGES—2.7%
                
Celsius Holdings, Inc.*
    
4,169
      
715,400
  
SYSTEMS SOFTWARE—3.0%
                
Crowdstrike Holdings, Inc., Cl. A*
    
2,481
      
415,270
  
SentinelOne, Inc., Cl. A*
    
23,465
      
395,620
  
 
            
810,890
  
TECHNOLOGY HARDWARE STORAGE & PERIPHERALS—2.1%
                
Super Micro Computer, Inc.*
    
2,017
      
553,102
  
TOTAL COMMON STOCKS
                
(Cost $22,879,691)
            
24,269,722
  
Total Investments
                
(Cost $22,879,691)
    
91.3
%
  
$
24,269,722
  
Unaffiliated Securities (Cost $22,879,691)
            
24,269,722
  
Other Assets in Excess of Liabilities
    
8.7
%
    
2,312,069
  
NET ASSETS
    
100.0
%
  
$
26,581,791
  

* Non-income producing security.

See Notes to Financial Statements.

-5-
THE ALGER ETF TRUST | ALGER WEATHERBIE ENDURING GROWTH ETF
Schedule of Investments September 30, 2023 (Unaudited)
 
COMMON STOCKS—94.4%
SHARES
    
VALUE
  
ADVERTISING—1.3%
         
The Trade Desk, Inc., Cl. A*

684
    
$
53,455
  
AEROSPACE & DEFENSE—12.0%

           
HEICO Corp.

596


96,510
  
TransDigm Group, Inc.*

447


376,879
  
 

 


473,389
  
APPLICATION SOFTWARE—11.5%

 


   
HubSpot, Inc.*

255


125,588
  
nCino, Inc.*

2,284


72,631
  
SPS Commerce, Inc.*

689


117,550
  
Vertex, Inc., Cl. A*

5,869


135,574
  
 

 


451,343
  
ASSET MANAGEMENT & CUSTODY BANKS—3.1%

 


   
StepStone Group, Inc., Cl. A

3,838


121,204
  
BIOTECHNOLOGY—1.9%

 


   
ACADIA Pharmaceuticals, Inc.*

3,560


74,190
  
BROADLINE RETAIL—3.6%

 


   
Ollie’s Bargain Outlet Holdings, Inc.*

1,832


141,394
  
CARGO GROUND TRANSPORTATION—5.1%

 


   
RXO, Inc.*

4,653


91,804
  
XPO, Inc.*

1,440


107,510
  
 

 


199,314
  
ENVIRONMENTAL & FACILITIES SERVICES—18.1%

 


   
Casella Waste Systems, Inc., Cl. A*

4,614


352,048
  
Montrose Environmental Group, Inc.*

1,490


43,597
  
Waste Connections, Inc.

2,363


317,351
  
 

 


712,996
  
HEALTHCARE EQUIPMENT—8.8%

 


   
Glaukos Corp.*

2,395


180,224
  
Inspire Medical Systems, Inc.*

333


66,080
  
Insulet Corp.*

287


45,774
  
Nevro Corp.*

2,901


55,757
  
 

 


347,835
  
HUMAN RESOURCE & EMPLOYMENT SERVICES—5.1%

 


   
Paylocity Holding Corp.*

1,104


200,597
  
MANAGED HEALTHCARE—5.6%

 


   
Progyny, Inc.*

6,433


218,851
  
REAL ESTATE SERVICES—8.9%

 


   
FirstService Corp.

2,402


349,587
  
SEMICONDUCTORS—1.8%

 


   
Impinj, Inc.*

1,282


70,548
  
TRADING COMPANIES & DISTRIBUTORS—3.5%

 


   
SiteOne Landscape Supply, Inc.*

835


136,481
  

-6-
THE ALGER ETF TRUST | ALGER WEATHERBIE ENDURING GROWTH ETF
Schedule of Investments September 30, 2023 (Unaudited) (Continued)
 
COMMON STOCKS—94.4% (CONT.)
  
SHARES
    
VALUE
  
TRANSACTION & PAYMENT PROCESSING SERVICES—4.1%
            
Flywire Corp.*
    
5,129
    
$
163,564
  
TOTAL COMMON STOCKS
                
(Cost $3,524,714)
    

 

3,714,748
  
Total Investments
                
(Cost $3,524,714)
    
94.4
  %   $
3,714,748
  
Unaffiliated Securities (Cost $3,524,714)
            
3,714,748
  
Other Assets in Excess of Liabilities
    
5.6
%
    
219,361
  
NET ASSETS
    
100.0
%
  
$
3,934,109
  

* Non-income producing security.

See Notes to Financial Statements.

-7-
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.
 
The Alger Weatherbie Enduring Growth ETF commenced operations on March 6, 2023.
 
On May 23, 2023, the Board of Trustees (the “Board”) approved the transition of the Fund’s custodian, administrator, and transfer agent from Brown Brothers Harriman & Company (the “Custodian”) to The Bank of New York Mellon. This change is anticipated to become effective in early 2024.
 
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 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 its 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 regularly reports its fair valuation determinations and related valuation information to the Board. The Committee generally meets quarterly and on an as-needed basis to review and evaluate the effectiveness of the valuation policies and procedures in accordance with the requirements of Rule 2a-5.

-8-
THE ALGER ETF TRUST
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
 
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 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 generally 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.
 
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, amortized cost, 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.

-9-
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 September 30, 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
  
$
2,930,655
    
$
2,930,655
     $ —    
$
 —  
Consumer Discretionary
    
2,252,067
      
2,252,067
       —       —  
Energy
    
1,177,864
      
1,177,864
       —       —  
Healthcare
    
1,136,984
      
1,136,984
       —       —  
Industrials
    
253,917
      
253,917
       —       —  
Information Technology
    
4,092,149
      
4,092,149
       —       —  
TOTAL COMMON STOCKS
  
$
11,843,636
    
$
11,843,636
     $ —    
$
 —  
TOTAL INVESTMENTS IN SECURITIES
  
$
11,843,636
    
$
11,843,636
     $ —    
$
 —  
 

Alger Mid Cap 40 ETF
  
TOTAL
    
LEVEL 1
     LEVEL 2    
LEVEL 3
  
COMMON STOCKS
                        
Communication Services
    
2,609,730
      
2,609,730
    
—       —  
Consumer Discretionary
    
2,033,572
      
2,033,572
       —       —  
Consumer Staples
    
1,147,142
      
1,147,142
       —       —  
Energy
    
550,134
      
550,134
       —       —  
Healthcare
    
6,106,042
      
6,106,042
       —       —  
Industrials
    
5,035,871
      
5,035,871
       —       —  
Information Technology
    
6,787,231
      
6,787,231
       —       —  
TOTAL COMMON STOCKS
  
$
24,269,722
    
$
24,269,722
      $ —    
$
 —  
TOTAL INVESTMENTS IN SECURITIES
  
$
24,269,722
    
$
24,269,722
      $ —    
$
 —  

Alger Weatherbie Enduring Growth ETF
  
TOTAL
    
LEVEL 1
     LEVEL 2    
LEVEL 3
  
COMMON STOCKS
                                
Communication Services
    
53,455
      
53,455
       —       —  
Consumer Discretionary
    
141,394
      
141,394
       —       —  
Financials
    
284,768
      
284,768
       —       —  
Healthcare
    
74,190
      
74,190
       —       —  
Industrials
    
2,289,463
      
2,289,463
       —       —  
Information Technology
    
521,891
      
521,891
       —       —  
Real Estate
    
349,587
      
349,587
       —       —  
TOTAL COMMON STOCKS
  
$
3,714,748
    
$
3,714,748
      $ —    
$
 —  
TOTAL INVESTMENTS IN SECURITIES
  
$
3,714,748
    
$
3,714,748
      $ —    
$
 —  

-10-
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 September 30, 2023, 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
  
$
797,637
      $ —    
$
797,637
    
$
—
  
Alger Mid Cap 40 ETF
    
2,350,406
       —      
2,350,406
      
—
  
Alger Weatherbie Enduring Growth ETF
    
271,773
       —      
271,773
      
—
  


-11-