Alger Russell Innovation ETF: Embracing the Future of Investment Opportunities

Alger and FTSE Russell Launch Innovation ETF

On January 6, 2025, Fred Alger Management, LLC announced the debut of the Alger Russell Innovation ETF (INVN), crafted to tap into the dynamics of market disruptors. Rooted in Alger's 60 years of expertise, this innovative exchange-traded fund (ETF) is designed to track the Alger Russell Innovation Index, which identifies the top 50 companies within the Russell 1000 Index known for their substantial investment in research and development (R&D) compared to their enterprise value (EV).

The new ETF aims to provide investors with a systematic way to engage with businesses that drive change and transformation in the economy. As highlighted by Brad Neuman, CFA and Alger's Director of Market Strategy, finding ways to invest in such innovative companies is essential in today's rapidly evolving financial landscape. Traditional valuation methods often overlook the potential of these forward-thinking companies, making innovative investment avenues increasingly vital.

Alger’s collaboration with FTSE Russell ensures a robust method for identifying and tracking these innovative entities. That's according to Sebastian Lancetti, CFA, Head of Index Research for the Americas at FTSE Russell, who noted the changing characteristics of the U.S. equity market over the past decade, influenced significantly by intangible asset investments.

Understanding the Alger Russell Innovation Index

The methodology behind the Alger Russell Innovation Index sets it apart, prioritizing companies that allocate a significant portion of their resources toward R&D. By focusing on firms that balance innovation with real economic results, the ETF positions investors to capitalize on future growth opportunities.

Dan Chung, CEO and Chief Investment Officer at Alger, emphasized the importance of this strategy, believing it could uncover undervalued innovative companies that are often missed by the conventional market spotlight. He noted, “The Alger Russell Innovation ETF’s unique methodology could highlight some of the most innovative businesses where spending on innovation isn't fully recognized by investors.”

The portfolio management team, which includes seasoned professionals like Dan Chung, Brad Neuman, and Greg Adams, boasts an average of 30 years of investment experience, further reinforcing the credibility and potential of this ETF.

Meeting Investor Demand

Echoing the sentiments of many investors seeking differentiated opportunities, Christoph Hofmann, Alger's President, pointed out the growing demand for innovative investment options. With offerings such as the Alger Concentrated Equity ETF (CNEQ) and the Alger AI Enablers Adopters ETF (ALAI) launched previously, Alger demonstrates a commitment to expanding their ETF lineup to meet evolving market needs.

The unveiling of the Alger Russell Innovation ETF comes at a time when investment strategies are increasingly gravitating towards technologies and sectors poised for rapid growth, highlighting a critical juncture in which investors must adapt their approaches to succeed.

The Alger Russell Innovation ETF not only offers a unique pathway to engage with innovation-focused companies but also represents a significant step for Alger in aligning their offerings with the future of investing.

For those interested in exploring these investment opportunities more broadly, Alger provides additional methods via separate accounts tailored for investment professionals. Alger, founded in 1964, is recognized as a trailblazer in growth-style investment management, and the company's philosophy has remained focused on discovering companies that present Positive Dynamic Change.

For more information about the Alger Russell Innovation ETF and other offerings from Fred Alger Management, interested parties can visit www.alger.com.

Conclusion

The launch of the Alger Russell Innovation ETF highlights a pivotal evolution in investment strategies, marking a shift towards identifying and supporting visionary companies. As markets continue to transform, the alignment of investment strategies with innovation may hold the key to sustainable and growing portfolios in the coming years.