It’s certainly no secret that many investors have leaned on the tech sector as a significant driver of growth in recent years. This trend is backed by compelling reasons, as the Information Technology sector has dominated the S&P 500 for well over two decades.
Tech’s supremacy isn’t merely a matter of historical precedence. The sector continues to innovate, particularly in areas like artificial intelligence (AI) and cloud computing. These advancements are reshaping industries and creating new opportunities for growth.
However, some investors express concerns that this upward trajectory may not be sustainable. While expanding tech valuations have contributed to strong recent gains, there are questions about whether these numbers will eventually revert to historical averages.
Despite these concerns, we believe that worries about near-term valuations do not capture the full picture for tech. The sector appears to be in a prime position to deliver dynamic growth through ongoing product innovation and the increasing adoption of AI. As the demand for AI infrastructure rises, tech companies are likely to benefit significantly.
CNEQ: A Diversified Take on Large-Cap Tech
Given this context, adopting a large-cap strategy with a tilt toward the tech sector could be a promising path forward. One option to consider for disciplined tech exposure is the Alger Concentrated Equity ETF (CNEQ).
CNEQ is an actively managed fund that aims for long-term growth by investing in a highly disciplined portfolio of 30 holdings or fewer. This concentrated approach, combined with the flexibility of active management, allows CNEQ’s portfolio team to identify companies with the most compelling potential for long-term results.
At first glance, one might question how CNEQ fits into an advisor’s portfolio as a tech holding. However, despite being sector-agnostic, over 50% of the fund’s portfolio weight is allocated to the information technology sector as of September 30, 2025.
In terms of tech exposure, CNEQ invests in leading companies capitalizing on growth opportunities in AI, including giants like Nvidia, Microsoft, Alphabet, and Meta. Yet, the fund also maintains investments in stocks outside the tech sector that offer distinct long-term growth potential. For example, CNEQ includes stocks like Robinhood and Constellation Energy, providing diverse routes to capital appreciation and ensuring the fund isn’t solely reliant on tech for compelling results.
Regarding performance, CNEQ has shown a strong report card this year. As of October 7, 2025, the fund’s NAV has risen by 36.26% year-to-date. This impressive performance underscores why CNEQ could be a viable option for advisors looking to capitalize on the long-term potential of the tech sector.
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Click here for standard performance and more information on the Alger Concentrated Equity ETF.
Performance data quoted represents past performance and is no guarantee of future results. DUE TO MARKET VOLATILITY, CURRENT PERFORMANCE MAY BE DIFFERENT THAN THE FIGURES SHOWN. Investment return and principal value will fluctuate so that an investor’s shares, when sold in the secondary market, may be worth more or less than original cost. Returns less than one year are not annualized. Performance does not reflect the deduction of commissions, which a broker may charge to execute a transaction in Fund shares, and an investor may incur the cost of the spread between the price at which a dealer will buy shares and the price at which a dealer will sell shares. Market performance is determined using the official closing price on the New York Stock Exchange. Market performance does not represent the returns you would receive if you traded shares at other times. To obtain performance data current to the most recent month end, please visit www.alger.com. Index performance does not represent the fund’s performance. Investors may not invest directly in an index.
Performance shown is net of fees and expenses.
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S&P 500® Index: An index of large company stocks considered to be representative of the U.S. stock market. Index performance does not reflect deductions for fees, expenses, or taxes.
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The following positions represented the noted percentages of CNEQ assets as of July 31, 2025: Nvidia Corporation: 15.58%; Microsoft Corporation: 11.02%; Alphabet Inc. Class C: 3.39%; Meta Platforms Inc Class A: 6.19%; Robinhood Markets, Inc. Class A: 1.81%; Constellation Energy Corporation: 2.98%.
Before investing, carefully consider a Fund’s investment objective, risks, charges, and expenses. For a prospectus and summary prospectus containing this and other information or for a Fund’s most recent month-end performance data, visit www.alger.com, call (800) 992-3863 (for a mutual fund) or (800) 223-3810 (for an ETF), or consult your financial advisor. Read the prospectus and summary prospectus carefully before investing. Distributor: Fred Alger & Company, LLC. All underlying series of The Alger ETF Trust listed on NYSE Arca, Inc. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE.
