What this ETF is trying to do

The ALGER MID CAP 40 ETF (ticker: FRTY) is an exchange-traded fund that focuses on mid-cap companies. Mid-cap companies are generally businesses that are medium-sized—not as small as brand-new startups, but not as massive as the biggest household names. This ETF holds a total of 42 different holdings.

What the numbers show

The current price of FRTY is $23.29. Looking back at history, we can use an estimated price from roughly one year ago, which was approximately $20.32.

When looking at how the fund has performed, it is important to look at two different things: price return and total return.

• Price Return: This measures only the change in the share price. The one-year price return was approximately 14.62%. The year-to-date (YTD) price return was approximately 10.62%. Over three years, the price return was approximately 87.22%.

• Total Return: This includes both the share price change and any distributions (cash payments). The one-year total return was approximately 14.84%. The YTD total return was also approximately 10.62%. Over three years, the total return was approximately 87.78%.

Because the total return is higher than the price return over the last year, it shows that distributions added to the overall value.

Income and distribution explanation

This ETF provides a distribution yield of approximately 0.18%. Distributions are cash payments made to investors. For this fund, the distribution frequency is described as irregular or less frequent, with one payout recorded in the last 12 months. It is important to remember that receiving cash distributions does not guarantee that your original investment (your principal) will stay the same value.

NAV erosion explanation

"NAV" stands for Net Asset Value, which is the actual value of the assets held by the ETF. "NAV erosion" happens when the value of those underlying assets drops significantly.

For FRTY, the erosion-risk score is 100, and the label indicates "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present. This means the data does not show signs of the fund's value being worn away by falling prices.

Top Holdings

The following are some of the top holdings in this ETF (note that this list is a partial view of the total holdings):

• DREYFUS TRSY OBLIG CASH MGMT CL INS (6.70%)

• TWIST BIOSCIENCE CORP (4.89%)

• WESTERN DIGITAL CORP (4.21%)

• LIBERTY MEDIA CORP REGISTERED SHS SERIES -C- FORMULA ONE (3.84%)

• VERTIV HOLDINGS CO CLASS A (3.64%)

• AXON ENTERPRISE INC (3.57%)

• COMFORT SYSTEMS USA INC (3.49%)

• NEBIUS GROUP NV SHS CLASS-A- (3.40%)

• HEICO CORP CLASS A (3.35%)

• CLOUDFLARE INC (3.31%)

*Holdings can change over time. This data was updated on August 28, 2026.*

Pros

• The fund has shown positive price returns and total returns over the one-year and three-year periods.

• The erosion-risk measurements suggest a healthy status with no detected price erosion.

Cons

• The distribution yield is relatively low at approximately 0.18%.

• The distributions are irregular rather than being paid on a steady, predictable schedule.

Beginner takeaway

When looking at an ETF like FRTY, it is helpful to distinguish between the share price and the total return. While the share price tells you how much the "sticker price" of the ETF changed, the total return gives you a fuller picture by including cash distributions. This fund has shown growth in both areas over the last year.