This is an actively managed ETF that holds a concentrated portfolio of roughly 40 US mid-cap growth stocks. It does not track a specific index. Instead, the management team uses fundamental research to hand-pick stocks it believes have high growth potential.

It suits long-term investors who want active stock selection in mid-cap growth rather than simple index tracking.

It is an ETF run by Alger using an active management approach.

Based on fundamental research, the management team selects US mid-cap stocks it believes have high growth potential and holds them in a concentrated portfolio. It typically invests most of its net assets in mid-sized company stocks, and holdings and weightings are adjusted at the management team's discretion rather than by an index.

• A concentrated, compressed portfolio of about 40 holdings
• A non-transparent active management structure

Assets under management (AUM) stand at $138.7M, and the expense ratio is 0.60% per year.

Given the nature of mid-cap growth stocks, the fund tends to react sensitively to shifts in overall market risk appetite and the interest rate environment. Because of its active structure, return trajectories can diverge even within the same category depending on stock selection results.

Mid-cap growth stocks tend to be more volatile than large caps, so investor interest often rises when risk appetite is strong and pressure builds relatively when investors turn risk-averse. As an active ETF, the management team's performance also influences fund flows.

The potential for excess returns through concentrated active management is its strength, while higher fees than passive funds and concentration risk are its drawbacks.

VIG, SCHD, and VYM shown in the table are low-cost passive ETFs centered on dividends, so their management character differs significantly. For broadly diversified exposure to mid-caps themselves, IJH and VO are low-cost passive alternatives, and IJK can also be considered as a comparison closer to the mid-cap growth style. Unlike these, FRTY differs in that active stock selection is at its core.

Here are the points to review before investing in FRTY. As an actively managed ETF, it is wise to thoroughly check the fee burden, portfolio concentration, and how heavily performance depends on the management team's stock selection before investing.

Because of its concentrated active structure, the fund could lag comparable passive funds if the management team's stock selection misses, and given the nature of mid-cap growth stocks, drawdowns can deepen during volatile markets. The fee burden also adds a cumulative drag on long-term performance.

It is an active ETF suited to long-term investors who want active, selective exposure to mid-cap growth stocks beyond simple index tracking. If cost is the priority, consider a low-cost passive alternative; if you want active selection, you can consider FRTY.