Astoria US Quality Growth Kings ETF (GQQQ)

ETF Astoria US Quality Growth Kings ETF (QKNG) Overview

Profile:

QKNG is an actively managed ETF that invests in a portfolio of 30-40 high-quality U.S. companies with a history of consistent earnings growth and strong balance sheets. Its primary focus is on identifying and investing in companies with sustainable competitive advantages and long-term growth potential. The ETF mainly allocates its assets to large-cap stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Objective:

The primary investment goal of QKNG is to achieve long-term capital appreciation through investment in high-quality growth companies. The ETF aims to outperform the S&P 500 Total Return Index over a full market cycle.

Issuer:

QKNG is issued by Astoria Portfolio Advisors LLC, a registered investment advisor with over $1 billion in assets under management. The firm has a solid reputation for actively managed strategies and a focus on quality growth investing.

Market Share & Total Net Assets:

QKNG has a relatively small market share in its sector, with approximately $30 million in total net assets as of October 27, 2023. This indicates that the ETF is still in its early stages of development and may have potential for future growth.

Moat:

QKNG's competitive advantages include:

• Active Management: The ETF's portfolio is actively managed by experienced investment professionals who utilize a proprietary research process to identify high-quality growth companies.
• Focus on Quality: QKNG invests in companies with strong fundamentals, competitive advantages, and a history of consistent earnings growth.
• Long-Term Perspective: The ETF employs a long-term investment horizon, aiming to capture the full potential of high-quality growth companies.

Financial Performance:

Since its inception in March 2022, QKNG has outperformed the S&P 500 Total Return Index. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The ETF's focus on high-quality growth companies positions it well for potential long-term growth, especially as these companies tend to outperform the market over extended periods.

Liquidity:

QKNG has an average daily trading volume of approximately 10,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.1%, which is relatively low for an actively managed ETF.

Market Dynamics:

Factors affecting QKNG's market environment include:

• Economic Growth: A strong economy typically benefits growth stocks, which are sensitive to economic cycles.
• Interest Rates: Rising interest rates can negatively impact growth stocks, as they increase the cost of capital.
• Technological Innovation: Companies at the forefront of technological innovation are likely to drive future growth.

Competitors:

Key competitors of QKNG include:

• iShares S&P 500 Growth ETF (IVW) - 7.5% market share
• Invesco QQQ Trust (QQQ) - 4.5% market share
• Vanguard Growth ETF (VUG) - 4.0% market share

Expense Ratio:

QKNG has an expense ratio of 0.85%, which is higher than the expense ratios of some passive index-tracking ETFs but lower than many actively managed funds.

Investment Approach & Strategy:

QKNG employs an active management approach, utilizing a proprietary research process to identify high-quality growth companies with strong fundamentals and long-term growth potential. The ETF invests in a concentrated portfolio of approximately 30-40 companies across various sectors, primarily focusing on large-cap stocks.

Key Points:

• Actively managed ETF with a focus on high-quality growth companies
• Outperformed the S&P 500 Total Return Index since inception
• Relatively small market share and total net assets
• Competitive advantages include active management, focus on quality, and long-term perspective
• Moderate liquidity and low bid-ask spread
• Higher expense ratio compared to some passive ETFs

Risks:

• Market Risk: QKNG's portfolio is exposed to the overall market risk, meaning its value can fluctuate with market conditions.
• Growth Stock Risk: Growth stocks are typically more volatile than value stocks, making QKNG vulnerable to potential market downturns.
• Concentration Risk: The ETF's concentrated portfolio increases its exposure to individual stock performance, potentially leading to higher volatility.

Who Should Consider Investing:

QKNG is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to high-quality growth companies
• Tolerance for higher volatility
• An actively managed ETF approach

Disclaimer:

This summary is based on publicly available information and should not be considered investment advice. Investing involves risk, and past performance does not guarantee future results. It is essential to conduct thorough research and consult with a financial advisor before making any investment decisions.

Resources:

• Astoria Portfolio Advisors: https://www.astoriapa.com/etfs/qkng/
• ETF.com: https://www.etf.com/QKNG
• Yahoo Finance: https://finance.yahoo.com/quote/QKNG/

Fundamental Rating Based on AI

Based on an AI-based analysis of the factors mentioned above, QKNG receives a preliminary rating of 7 out of 10. This rating is driven by the ETF's strong focus on quality, active management approach, and promising growth trajectory. However, the relatively small market share, limited historical data, and higher expense ratio contribute to a slightly lower rating.

Justification:

• Financial Health: QKNG invests in companies with strong fundamentals and balance sheets, promoting financial stability.
• Market Position: While the ETF's market share is currently small, its unique focus and active management hold potential for future growth.
• Future Prospects: The ETF's concentration on high-quality growth companies positions it well for potential long-term outperformance.

However, further analysis and monitoring of the ETF's performance and market dynamics are necessary to refine the rating and provide a more comprehensive evaluation.