ALAI vs. IGM

Last updated Aug 4, 2026

ALAI (Alger AI Enablers & Adopters ETF) and IGM (iShares Expanded Tech Sector ETF) are both exchange-traded funds - ALAI is a Artificial Intelligence fund actively managed by Alger, while IGM is a Technology Equities fund tracking the S&P North American Expanded Technology Sector Index. ALAI is actively managed, while IGM is passively managed. Over the past year, ALAI returned 40.53% vs 38.56% for IGM. Their correlation of 0.91 means they have usually moved in the same direction. ALAI charges 0.55%/yr vs 0.39%/yr for IGM.

Performance

ALAI vs. IGM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alger AI Enablers & Adopters ETF (ALAI) and iShares Expanded Tech Sector ETF (IGM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with ALAI having a 22.63% return and IGM slightly lower at 21.55%.

ALAI

• 1D: 2.98%
• 1M: 1.63%
• 6M: 22.67%
• YTD: 22.63%
• 1Y: 40.53%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 42.22%

IGM

• 1D: 2.20%
• 1M: 0.03%
• 6M: 20.71%
• YTD: 21.55%
• 1Y: 38.56%
• 3Y*: 33.72%
• 5Y*: 18.11%
• 10Y*: 23.41%
• ALL TIME*: 12.48%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
ALAI Alger AI Enablers & Adopters ETF	$3.00M	$4.32M	$4.07M
IGM iShares Expanded Tech Sector ETF	$47.27M	$46.48M	$81.75M

ALAI vs. IGM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ALAI Alger AI Enablers & Adopters ETF	22.63%	39.81%	32.38%
IGM iShares Expanded Tech Sector ETF	21.55%	26.76%	20.52%

Correlation

The correlation between ALAI and IGM is 0.90, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.90
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	0.91

The correlation between ALAI and IGM has been stable across timeframes, ranging from 0.90 to 0.91 - a consistent structural relationship.

ALAI vs. IGM - Sectors Allocation Comparison

Sectors	ALAI	IGM
Technology	53.7%	85.2%
Communication Services	18.0%	14.1%
Consumer Cyclical	11.9%	0.0%
Industrials	5.8%	0.3%
Financial Services	4.1%	0.2%
Utilities	3.2%	-
Healthcare	2.6%	-
Basic Materials	0.7%	0.0%
Consumer Defensive	-	-
Energy	-	0.0%
Real Estate	-	-

Return for Risk

ALAI vs. IGM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

ALAI

ALAI Risk / Return Rank: 56
ALAI Sharpe Ratio Rank: 60
ALAI Sortino Ratio Rank: 59
ALAI Omega Ratio Rank: 54
ALAI Calmar Ratio Rank: 57
ALAI Martin Ratio Rank: 51

IGM

IGM Risk / Return Rank: 63
IGM Sharpe Ratio Rank: 68
IGM Sortino Ratio Rank: 63
IGM Omega Ratio Rank: 61
IGM Calmar Ratio Rank: 66
IGM Martin Ratio Rank: 56

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

ALAI vs. IGM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alger AI Enablers & Adopters ETF (ALAI) and iShares Expanded Tech Sector ETF (IGM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ALAI	IGM	Difference
Sharpe ratio: Return per unit of total volatility	1.48	1.59	-0.11
Sortino ratio: Return per unit of downside risk	2.07	2.14	-0.07
Omega ratio: Gain probability vs. loss probability	1.25	1.27	-0.02
Calmar ratio: Return relative to maximum drawdown	2.09	2.36	-0.27
Martin ratio: Return relative to average drawdown	6.16	6.77	-0.61

ALAI vs. IGM - Sharpe Ratio Comparison

The current ALAI Sharpe Ratio is 1.48, which is comparable to the IGM Sharpe Ratio of 1.59. The chart below compares the historical Sharpe Ratios of ALAI and IGM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ALAI vs. IGM - Drawdown Comparison

The maximum ALAI drawdown since its inception was -29.36%, smaller than the maximum IGM drawdown of -65.59%. Use the drawdown chart below to compare losses from any high point for ALAI and IGM.

Drawdown Indicators

	ALAI	IGM	Difference
Max Drawdown Largest peak-to-trough decline	-29.36%	-65.59%	+36.23%
Max Drawdown (1Y) Largest decline over 1 year	-19.48%	-16.44%	-3.04%
Max Drawdown (3Y) Largest decline over 3 years	—	-26.39%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-40.68%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-40.68%	—
Current Drawdown Current decline from peak	-5.28%	-8.21%	+2.93%
Average Drawdown Average peak-to-trough decline	-5.18%	-15.18%	+10.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.59%	5.71%	+0.88%

Volatility

ALAI vs. IGM - Volatility Comparison

Alger AI Enablers & Adopters ETF (ALAI) has a higher volatility of 10.48% compared to iShares Expanded Tech Sector ETF (IGM) at 8.47%. This indicates that ALAI's price experiences larger fluctuations and is considered to be riskier than IGM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALAI	IGM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.48%	8.47%	+2.01%
Volatility (6M) Calculated over the trailing 6-month period	22.49%	20.36%	+2.13%
Volatility (1Y) Calculated over the trailing 1-year period	27.55%	24.40%	+3.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.15%	26.36%	+2.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.15%	24.85%	+4.30%

ALAI vs. IGM - Expense Ratio Comparison

ALAI has a 0.55% expense ratio, which is higher than IGM's 0.39% expense ratio.

Dividends

ALAI vs. IGM - Dividend Comparison

ALAI's dividend yield for the trailing twelve months is around 1.22%, more than IGM's 0.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALAI Alger AI Enablers & Adopters ETF	1.22%	1.50%	0.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
IGM iShares Expanded Tech Sector ETF	0.14%	0.17%	0.22%	0.33%	0.66%	0.16%	0.32%	0.50%	0.57%	0.57%	0.90%	0.79%

Frequently Asked Questions

Can I hold both ALAI and IGM in my portfolio?

ALAI and IGM have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALAI or IGM?

ALAI has higher volatility (10.48%) compared to IGM (8.47%). In terms of maximum drawdown, ALAI dropped -29.36% vs IGM's -65.59%.

Which ETF is better, ALAI or IGM?

On 1-year performance, ALAI leads with 40.53% vs 38.56% for IGM. On fees, IGM is cheaper at 0.39% per year. On volatility, IGM has been the lower-risk option at 8.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ALAI or IGM?

Over the 1-year period, ALAI has performed better with a 40.53% return vs 38.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ALAI or IGM?

IGM is cheaper with a 0.39% expense ratio, compared with 0.55% for ALAI.

Which ETF pays a higher dividend yield, ALAI or IGM?

ALAI has the higher dividend yield at 1.22%, compared with 0.14% for IGM.

What is the main difference between ALAI and IGM?

ALAI is categorized as Artificial Intelligence, while IGM is Technology Equities. They also come from different issuers: Alger and iShares. Their fees differ too: 0.55% for ALAI and 0.39% for IGM.

Which has better risk-adjusted returns?

IGM currently has the higher Sharpe Ratio (1.59 vs 1.48), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.