AI Marketing Value Highlights Rising Demand

AI is significantly impacting corporate adoption, particularly in marketing, where it enhances email campaigns, content creation, and graphic design, driving broader demand for AI infrastructure and innovation. For investors seeking exposure, the Alger AI Enablers & Adopters ETF (ALAI), an active fund focused on AI adoption and development, has demonstrated strong performance, with its NAV rising 41.76% year-to-date as of September 23, 2025, outperforming the S&P 500 by over 27%.

Analysis

Corporate adoption of artificial intelligence is creating a significant tailwind, particularly within the marketing industry where AI is being leveraged to scale email campaigns, streamline content creation, and generate design mockups. This broad-based demand for AI applications underpins the investment thesis for the Alger AI Enablers & Adopters ETF (ALAI). ALAI is an actively managed, non-diversified fund that employs a bottom-up fundamental approach to gain exposure to this theme. The fund's strategy specifically targets companies exhibiting 'Positive Dynamic Change,' which is defined by two factors: catalyst-driven 'Positive Lifecycle Change' (e.g., new products, management shifts) and momentum-based 'High Unit Volume Growth.' This strategy has yielded substantial returns, with the fund's NAV appreciating 41.76% year-to-date as of September 23, 2025, representing an outperformance of over 27% against the S&P 500 in the same period. However, investors should note the inherent risks detailed, including the high volatility associated with growth stocks, sector concentration, and potential regulatory scrutiny of the AI industry.

Key Decisions for Investors

• Investors seeking concentrated exposure to the AI secular growth trend may consider ALAI, given its active management and demonstrated significant year-to-date outperformance versus the broader market.
• Evaluate the fund's specific investment criteria, focusing on 'Positive Lifecycle Change' and 'High Unit Volume Growth,' to ensure its catalyst and momentum-driven approach aligns with your portfolio's strategy.
• Be mindful of the fund's non-diversified status and concentration in the technology sector; monitor for heightened volatility and risks associated with rapid product obsolescence and potential regulatory headwinds.
• Acknowledge that the fund's strong 41.76% YTD performance is historical and may not be indicative of future results, especially given the volatility risks inherent in its target growth and technology-focused companies.