Not All Equal Weight Strategies Are Created Equal

This article was originally published on ETFTrends.com.

On a cumulative basis, ROE has returned 61.81% (market) and 61.74% (NAV) since inception (July 31, 2023) through April 30, 2026, outperforming the S&P 500 Equal Weight Index's 38.66% return over the same period by a factor of 1.60x. On a 1-year basis, ROE has returned 35.88% (market) and 35.82% (NAV) through April 30, 2026, outperforming the S&P 500 Equal Weight Index's 22.56% return over the same period by a factor of 1.59x.

Quality screening favors companies with high return on equity (ROE) and return on invested capital (ROIC), characteristics that have historically been associated with stronger risk-adjusted returns over time.

Sector-optimized construction differentiates ROE from traditional equal-weight indices, particularly in the Information Technology and Communication Services sectors.

The Astoria US Equal Weight Quality Kings ETF (ROE) invests in up to 100 of the highest quality US large-cap and mid-cap stocks, applying a quality-driven screening process built on equal-weight, sectoroptimized construction. ROE aims to address two potential pitfalls of market-cap-weight indexing and simple equal-weight indexing: t

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/not-equal-weight-strategies-created-172124143.html)