ROE: Solid But Thus-Far Ineffective Strategy

Summary

• The Astoria US Equal Weight Quality Kings ETF has a 0.49% expense ratio and $140 million in equal-weighted assets across major sectors.
• ROE's 23% turnover and equal-weight strategy eliminate market cap bias but fail to generate alpha over broader cap-weighted indices, as represented by SPY or QQQ.
• Pairing ROE with the Roundhill Daily Inverse Magnificent Seven ETF (MAGQ) can offset Mag 7's impact, but requires precise timing and carries significant risks.
• Given ROE's lack of advantages over SPY or QQQ and higher expense ratio, I recommend a Hold rating for this ETF.

Dragon Claws

The Astoria US Equal Weight Quality Kings ETF (NASDAQ:ROE) is an actively and internally managed fund from Astoria Portfolio Advisors that was incepted a little over a year ago, at the end of July 2023. The 0.49% expense ratio falls right on

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.