The Alger Concentrated Equity ETF demonstrated a robust performance in the third quarter of 2025, surpassing the Russell 1000 Growth Index. This positive outcome was largely driven by significant contributions from several key holdings. However, the quarter also saw some holdings negatively impact performance, underscoring the dynamic nature of concentrated equity strategies. This review delves into the factors behind the ETF's strong showing, identifying both the leading gainers and the primary detractors that shaped its quarterly results.
The Alger Concentrated Equity ETF in the third quarter of 2025 showcased its ability to outperform a significant market benchmark, the Russell 1000 Growth Index. This achievement reflects the effectiveness of its investment strategy, which focuses on a select number of high-conviction growth opportunities. Despite the inherent volatility in concentrated portfolios, the ETF managed to deliver superior returns, suggesting strong fundamental performance among its top picks. This success provides valuable insights into the current market landscape and the potential of specific sectors and companies within the growth equity space.
Exceptional Q3 2025 Performance
During the third quarter of 2025, the Alger Concentrated Equity ETF achieved an impressive performance, exceeding the returns of the Russell 1000 Growth Index. This strong showing is a testament to the strategic selection of its holdings and their robust market performance. The ETF's ability to outperform its benchmark in a competitive growth environment highlights the efficacy of its focused investment approach and the underlying strength of the companies within its portfolio. This period of outperformance suggests that the fund's management successfully navigated market dynamics and capitalised on promising opportunities.
The Alger Concentrated Equity ETF posted strong results in Q3 2025, outperforming the Russell 1000 Growth Index. This success was driven by key holdings that demonstrated significant growth. The ETF's strategy focuses on identifying companies with strong growth potential, and this quarter's performance validated that approach. The outperformance reflects a combination of strategic asset allocation and the individual successes of its portfolio companies, positioning the ETF favourably within the growth equity landscape. The active management style appears to have effectively captured upside potential while mitigating broader market risks, leading to a notable return for investors.
Key Contributors and Detractors
The positive performance of the Alger Concentrated Equity ETF in the third quarter of 2025 was significantly buoyed by stellar contributions from NVIDIA Corporation (NVDA), Nebius Group N.V. (NBIS), and Astera Labs, Inc. (ALAB). These companies played a crucial role in driving the ETF's outperformance against the Russell 1000 Growth Index, showcasing the strength of their respective market positions and growth trajectories. Conversely, Netflix, Inc. (NFLX), GFL Environmental Inc (GFL), and Twilio, Inc. (TWLO) were among the top detractors, indicating areas where the portfolio faced challenges or experienced underperformance during the quarter.
The Alger Concentrated Equity ETF's strong third-quarter 2025 performance was largely attributed to the robust contributions of NVIDIA Corporation (NVDA), Nebius Group N.V. (NBIS), and Astera Labs, Inc. (ALAB). These companies were pivotal in driving the ETF's returns beyond those of the Russell 1000 Growth Index, illustrating their market leadership and innovative prowess. However, the portfolio also experienced some headwinds, with Netflix, Inc. (NFLX), GFL Environmental Inc (GFL), and Twilio, Inc. (TWLO) being the primary detractors. Their underperformance partially offset the gains from other holdings, presenting a balanced view of the quarter's outcomes. This mix of strong performers and some underperformers is typical for a concentrated equity strategy, as it aims for high growth while acknowledging inherent risks.
