This is an active ETF that does not track an index. Its managers select the stocks themselves and concentrate investments in a small number of core holdings that they believe are going through a phase of positive change. It builds a growth-oriented portfolio with a high weighting in technology companies.

It is suited to growth investors who want to back the managers' stock-picking ability rather than follow an index, and who are willing to accept the volatility of a concentrated portfolio.

It is an ETF run by Alger using an active (actively managed) approach.

Through fundamental research, the manager selects companies it believes are undergoing positive dynamic change and concentrates investments in a small number of stocks. It builds a non-diversified portfolio centered on companies that benefit from technological advancement and improvement, and it adopts a non-transparent active structure in which holdings are not disclosed daily.

• Concentrated active management in a small number of stocks
• Selection centered on technology growth companies

Assets under management (AUM) stand at $560.9M, and the Expense Ratio is 0.56% per year.

Unlike index ETFs, performance depends on the managers' selections, and the holdings disclosure schedule differs because of the non-transparent structure.

Because of its heavy weighting in technology and growth stocks, it tends to be strong when markets are in a risk-on phase and volatile when concerns about interest rates or earnings come to the fore. Given the nature of a concentrated portfolio, individual stocks have a large impact on performance.

Interest in stock-selection products continues alongside growing demand for active ETFs, and fund flows tend to fluctuate with the environment for growth stocks. The appeal of a concentrated strategy can change depending on market conditions.

The managers' active selection and the focus on technology growth are strengths, but concentration in a small number of stocks and active management costs are risk factors.

Among the comparison ETFs in the table, ARKK (an actively managed innovation theme product), DYNF (a factor rotation product), and THRO (a theme rotation product) all share an active character with ATFV, though they differ in fees and management approach. For the same large-cap growth exposure, QQQ, a lower-cost index-based core ETF, is an option. Investors who prefer an active innovation theme can look at ARKW, and those who want active large-cap growth management can consider FBCG as well.

Here are the points to review before investing in ATFV. As an active, concentrated growth ETF, it is wise to check its costs, concentration, and management strategy in advance, and to understand beforehand that its performance structure differs from that of index ETFs.

Concentration in a few stocks and a tilt toward technology growth stocks are the main drivers of volatility. Because performance depends on the managers' selections, results may deviate considerably from those of index-based products.

It is an active ETF worth considering for investors who want to back the managers' active stock selection and technology growth focus instead of following an index. It is best used as a supplementary or satellite holding, taking costs and concentration risk into account.