Discover Market Insights with Astoria's ROE ETF for Long-term Growth - Business

Wall Street is finally moving beyond the " Magnificent Seven " domination , and investors may want to find the right exposure . Astoria Portfolio Advisors ' CEO , John Davi , believes the Astoria US Equal Weight Quality Kings ETF ( ROE ) is the way to go . This ETF , launched in 2023 , has seen a 17.6 % increase year to date , outperforming its competitors like the Invesco S&P 500 Equal Weight ETF ( RSP ) and iShares MSCI USA Equal Weighted ETF ( EUSA).

 The ROE is holding its own during the market rotation , up 4.6 % and on a five - day winning streak . Astoria works with financial advisors to help build client portfolios . Davi said they were looking for ways to shift away from mega - cap stocks but found that popular funds like RSP and EUSA were n't meeting their needs.

Astoria 's unique strategy includes mirroring the sector exposure of the S&P 500 while maintaining equal - weighted individual stocks . The fund holds 100 stocks , compared to holding every name in the S&P 500 . The candidate pool consists of U.S. stocks meeting size and liquidity minimums , ranked based on quality and valuation metrics . The top - ranked stocks in each sector are included in the fund , which is rebalanced quarterly.

 The ROE growth comes at a time when the market was dominated by a few stocks , mostly Big Tech names . The top 10 stocks in the S&P accounted for 77 % of the S&P 500 's gains in the first half of the year , and made up over a third of the index by weighting.

While the Astoria fund is underperforming some other quality - focused funds like the iShares MSCI USA Quality Factor ETF ( QUAL ) , it provides a different investment approach . It is considered a " complementary " product , potentially representing a third of equity exposure for investors . However , being less than a year old with relatively small assets under management and daily trading volume , the fund will need more time and various market conditions to prove its long - term value.

Davi mentioned that the ROE has a higher expense ratio compared to some competitors at 0.49 % . This means investors should carefully consider their investment goals and risk tolerance before allocating a portion of their portfolio to the Astoria US Equal Weight Quality Kings ETF .

In conclusion , the market rotation and the rise of the Astoria fund highlight the need for investors to diversify their portfolios and consider alternative strategies like equal - weighted ETFs for potential long - term growth and stability in their investments.