Astoria US Quality Kings ETF (ROE)

Astoria US Quality Kings ETF: An Overview

Profile:

Astoria US Quality Kings ETF (QKNG) invests in high-quality US companies with consistent, high returns on capital and strong cash flows. It specifically focuses on the top 25 companies determined to have the highest quality characteristics based on Astoria Investment Management's proprietary research. The ETF passively tracks the Astoria Quality Kings Index and holds companies across various industries.

Objective:

The ETF aims to achieve long-term capital appreciation by investing in companies with strong business fundamentals and consistent profitability, thereby providing investors exposure to a diversified portfolio of high-quality US businesses.

Issuer:

QKNG is offered by Astoria Investment Management, a boutique investment firm specializing in actively investing in and creating solutions for individual and institutional investors based on a rigorous framework.

Reputation and Reliability:

Astoria Investment Management has a strong reputation in the industry. The firm is registered with the SEC and maintains a clean regulatory record.

Management:

Astoria's team has extensive experience in quantitative analysis, portfolio construction, and risk management. The firm's investment process is driven by rigorous fundamental research, and its management team is highly qualified.

Market Share:

QKNG has a relatively small market share within the broader U.S. equity ETF market, currently capturing around 0.01%.

Total Net Assets:

As of November 2023, QKNG has approximately $25 million in total net assets.

Moat:

QKNG's competitive advantages include:

• Focus on quality: Its emphasis on investing in high-quality companies with consistent profitability sets it apart from other ETFs.
• Proprietary research: The ETF utilizes Astoria's proprietary research methodology to identify companies with the highest quality characteristics, offering a unique approach.
• Passive management: QKNG's passively managed structure keeps costs low, making it an attractive option for cost-conscious investors.

Financial Performance:

Since inception in 2021, QKNG has outperformed the broader market.

• 1-year: +18%
• Year-to-date: +14%

Benchmark Comparison:

QKNG has outperformed its benchmark, the Russell 1000 Index, over the past year and year-to-date.

Growth Trajectory:

QKNG is a relatively new ETF, but its strong performance and unique approach suggest potential for future growth.

Liquidity:

• Average Trading Volume: Approx. 5,000 shares per day
• Bid-Ask Spread: Tight spread, indicating relatively low transaction costs.

Market Dynamics:

Factors affecting QKNG's market environment include:

• Overall economic growth: Strong economic conditions tend to benefit high-quality companies, positively impacting the ETF's performance.
• Interest rates: Rising interest rates may pose challenges for the ETF, as higher rates could impact companies' borrowing costs and profitability.

Competitors:

Key competitors in the high-quality ETF space include:

• **QUAL - Invesco S&P 500 Quality ETF (0.10% market share)
• **SPHQ - Invesco S&P 500 High Dividend Low Volatility ETF (0.09% market share)

Expense Ratio:

QKNG has an expense ratio of 0.55%, which is slightly lower than the average expense ratio for similar ETFs.

Investment Approach and Strategy:

The ETF passively tracks the Astoria Quality Kings Index, which selects the top 25 companies with the highest quality characteristics based on factors like:

• Return on capital
• Profitability
• Cash flow
• Debt-to-equity ratio

Key Points:

• Invests in high-quality US companies
• Strong outperformance compared to benchmark
• Unique, research-driven approach
• Low expense ratio

Risks:

• Market risk: QKNG is subject to the overall market risks and volatility of the U.S. equity market.
• Concentration risk: As the ETF focuses on a limited number of companies, its performance may be more sensitive to the individual performance of those companies.

Who Should Consider Investing:

Investors looking for exposure to a portfolio of high-quality U.S. companies with a long-term investment horizon could consider QKNG. The ETF is suitable for those comfortable with the inherent