ALAI vs XAIX

ALAIBAlger AI Enablers & Adopters ETF

XAIXAXtrackers Artificial Intelligence and Big Data ETF

In short

ALAI Most AI funds hand the theme to an index. Alger hands it to analysts: active managers sort names into AI Enablers (the builders) and AI Adopters (the users), at 0.58% net of a waiver through December 31, 2027.

XAIX —No data

Stated mandate

ALAI The Fund’s stated aim is long-term growth in capital.

XAIX —No data

Why people hold it

• ALAI Two sides of the trade. The prospectus splits AI into Enablers (the hardware, software and services behind it) and Adopters (companies folding AI into their operations).sec.gov
• A judgment call, not a keyword screen: the manager must see AI playing a material role in driving a stock's performance over the next twelve to thirty-six months.sec.gov
• At least 80% of net assets go to equities of any market cap the manager believes benefit from AI, so small and mid caps can sit beside the megacap names.sec.gov
• 0.58% net of a waiver through December 31, 2027 (0.67% gross) lands below the AI category median, unusual for active stock picking. A multi-billion-dollar book behind it.

XAIX —No data

Worth knowing

• ALAI Index rivals cost less: ARTY at 0.47%, XAIX at 0.35%, neither on a waiver. The fee here buys research, and reverts toward 0.67% if the waiver lapses after 2027.
• Concentrated and busy. About 70 stocks in one theme, and the prospectus notes turnover costs sit outside the expense ratio and can raise taxes in a taxable account.sec.gov
• Launched in April 2024, so the record is short, and trading is moderate rather than among the category's heaviest, which can matter on large or fast orders.

XAIX —No data

Full ALAI profile⁠

Full XAIX profile⁠