If 2025’s already extensive collection of news headlines can provide any lesson, it’s that the market environment can change fast.
At this point, it’s realistically too difficult for advisors and investors to try to anticipate how next week’s headlines could affect the near-term market. Instead, the best course of action may be to ignore the chaos and simply focus on fostering long-term growth.
However, the question remains: what is the most efficient way to cultivate long-term growth? One potential solution may come from taking a more focused approach to the equity market. By focusing more directly on the companies and sectors with the highest growth potential, investors and advisors may be able to tap into capital appreciation that could outpace a traditional market index.
CNEQ Offers a More Disciplined Approach
For instance, take a look at how the Alger Concentrated Equity ETF (CNEQ) operates. CNEQ is an actively managed fund that looks to generate long-term capital appreciation through a large-cap equity strategy.
As the fund’s title suggests, CNEQ offers a more concentrated portfolio than many other large-cap ETFs on the market. Traditionally speaking, the fund looks to own no more than 30 holdings at any given time. These holdings are then focused into equity securities that the CNEQ portfolio team believes to have compelling long-term growth potential.
A non-diversified ETF, CNEQ, can opportunistically focus its investments towards any sectors that its portfolio team anticipates can benefit from long-term growth trends. As of June 30th, 2025, well over 30% of the fund’s total assets were allocated to the information technology sector. This can make a great deal of sense, as many companies within the sector, such as Nvidia, Apple, and Alphabet, remain in a good position to take advantage of long-term growth opportunities, especially when it comes to AI adoption and innovation.
Even as volatility has roiled the equity market, CNEQ’s disciplined strategy has paid off with compelling results thus far. As of June 30th, 2025, CNEQ’s NAV has risen over 18% year-to-date. These results far outpace both the S&P 500 and the Russell 1000 Growth Index.
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