ETF Concentrated Equity Fund Outperforms S&P 500 with Active Stock Picks

The Alger Concentrated Equity ETF (CNEQ) returned 32% in 2025, beating the S&P 500 by 14 percentage points. The fund's focused portfolio of 30 or fewer holdings, mainly large-cap companies with high growth potential, capitalized on a shifting market environment. Top holdings include NVIDIA, Microsoft, Amazon, AppLovin, and Meta, as well as specialized GPU-cloud providers and power infrastructure names. The fund's concentrated approach allows for more weight in each position, amplifying returns when the portfolio manager can successfully identify companies with strong earnings momentum.