NPORT-EX 2 brhc10038015_corresp.htm SOI
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
  

- 2 -
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.

- 3 -
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
  

- 4 -
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.

- 5 -
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.

- 6 -
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.

- 7 -
(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:

- 8 -
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
    
—
  


- 9 -