Not all equal-weight ETFs offer the same market exposure

The Astoria US Equal Weight Quality Kings ETF (ROE) launched July 31, 2023. The fund uses an equal-weighted portfolio of 100 U.S. large- and mid-cap stocks and applies profitability and efficiency filters in its selection process. Empowered Funds LLC (doing business as ETF Architect) is the investment adviser, Astoria Portfolio Advisors LLC is the sub-adviser, and PINE Distributors LLC distributes the shares.

ROE selects companies based on metrics such as return on equity (ROE), return on invested capital (ROIC) and operating profitability. Each of the 100 holdings receives an equal weight at rebalance. The fund’s construction keeps sector allocations close to the broader U.S. equity market rather than assigning equal weight to each sector; stock selection is the primary source of active differences from cap-weighted benchmarks.

Because the portfolio assigns equal weights to 100 names rather than using float-adjusted market-cap weights, ROE shifts exposure down the market-cap spectrum compared with the S&P 500. Astoria’s materials show the fund’s equity style box is roughly 55% large-cap, 38% mid-cap and 6% small-cap. For comparison, the S&P 500 index concentrates about 81% in large-cap names by the same definitions, and the S&P 500 Equal Weight Index places near 59% in mid-cap names and about 30% in large-cap names.

Performance figures in Astoria’s investor materials cover the period from the fund’s July 31, 2023 inception through April 30, 2026. Over that span the ETF returned 61.81% on a market-price basis and 61.74% on a net asset value basis. The S&P 500 Equal Weight Index returned 38.66% over the same period. For the one-year window ending April 30, 2026, ROE returned 35.88% (market) and 35.82% (NAV), versus 22.56% for the S&P 500 Equal Weight Index. The fund’s expense ratio is 0.49%. Astoria’s materials note that past performance is not a guarantee of future results.

The fund’s prospectus and regulatory filings list principal risks including the possibility that quality stocks may underperform, that the manager’s selections may not meet objectives, and that quantitative models and data can produce errors or flawed outcomes. Additional ETF-specific risks cited include the potential for market prices of shares to trade at premiums or discounts to NAV and the general market risks associated with equity investing. The prospectus and fund documents are available on the issuer’s website.

Astoria’s documents describe ROE as an option positioned between cap-weighted and pure equal-weight exposures by reducing single-stock concentration found in market-cap benchmarks, increasing mid-cap exposure relative to the S&P 500, and applying profitability screens in stock selection. Further methodology, fee and risk details are provided in the fund prospectus and on Astoria’s site.