Astoria US Quality Kings ETF (ROE)

ETF Astoria US Quality Kings ETF Overview

Profile:

The Astoria US Quality Kings ETF (QKNG) is a passively managed ETF that tracks the Astoria US Quality Kings Index. This index consists of 50 large-cap U.S. companies with strong track records of revenue and earnings growth, high returns on equity, and consistent dividend payouts. QKNG primarily focuses on the consumer staples, healthcare, and technology sectors.

Objective:

The ETF aims to provide long-term capital appreciation through exposure to high-quality, dividend-paying companies.

Issuer:

Astoria Investment Management is a boutique asset management firm founded in 2016. Although relatively new, the firm's leadership team has extensive experience in the investment industry, managing global quantitative portfolios for institutions.

Market Share:

QKNG is a relatively small ETF with total assets under management (AUM) of around $150 million. However, it has experienced significant growth since its inception in 2021.

Moat:

The ETF's unique approach to selecting stocks based on quality factors and its focus on a specific niche within the large-cap space could be considered its competitive advantage.

Financial Performance:

Since its inception, QKNG has outperformed the broader market, demonstrating resilience during market downturns. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The ETF's focus on high-quality, dividend-paying companies aligns well with the growing demand for income-generating investments. This trend suggests potential for continued growth in the future.

Liquidity:

QKNG has a moderate average trading volume, indicating decent liquidity. However, the bid-ask spread can be slightly wider than other ETFs, suggesting a slightly higher cost of trading.

Market Dynamics:

QKNG's performance is likely to be influenced by factors like economic growth, interest rates, and sector performance within the U.S. market.

Competitors:

QKNG's main competitors include:

• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core S&P 500 High Dividend ETF (SPYD)
• Invesco Quality ETF (QUAL)

These ETFs offer similar exposure to high-quality, dividend-paying companies.

Expense Ratio:

QKNG has an expense ratio of 0.40%, which is slightly higher than some of its competitors.

Investment Approach and Strategy:

QKNG employs a passive management strategy, tracking the Astoria US Quality Kings Index. The underlying index selects stocks based on quality factors, such as:

• Revenue and earnings growth
• Return on equity
• Dividend history

Key Points:

• Focus on high-quality, dividend-paying companies
• Outperformance compared to the broader market
• Potential for continued growth
• Moderate liquidity
• Higher expense ratio compared to some competitors

Risks:

• Market volatility: QKNG's performance is linked to the overall market performance, which can be volatile.
• Sector risk: The ETF's focus on specific sectors could expose it to higher risks compared to a more diversified portfolio.
• Dividend risk: Dividends are not guaranteed and may be reduced or suspended in the future.

Who Should Consider Investing:

QKNG is suitable for investors seeking:

• Long-term capital appreciation
• Income generation through dividends
• Exposure to high-quality, established companies

Fundamental Rating Based on AI:

Based on an AI analysis considering factors like financial health, market position, and future prospects, QKNG receives a 7 out of 10 rating. The AI analysis highlights its strong performance, focus on quality companies, and potential for growth. However, the slightly higher expense ratio and limited market share could be considered drawbacks.

Resources and Disclaimers:

• Astoria Investment Management website: https://astoriaim.com/
• ETF Database: https://etfdb.com/etf/QKNG/
• Morningstar: https://www.morningstar.com/etfs/arcx/qkng/overview

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.