ROE: Equal Weight ETF from Astoria - Selecting the best QUALITY in a DIVIDED market.

[@joenaylor34]

2:58/15.51 I was surprised that the equal weight came out higher. I ran the comparison myself using data from Schwab and the market cap came out higher.

[@wealthadventures]

Hi. S&P 500 equal weight index was launched back in 2003 so anything prior has to be backtested. S&P Global does have info that goes back 20 years based on the index: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/www.spglobal.com/spdji/en/documents/research/research-more-equal-than-others-20-years-of-the-sp-500-equal-weight-index.pdf What did you use and find with Schwab?

[@joenaylor34]

I used the Schwab website and plotted RSP (Invesco Equal Weight) versus $SPX for the trailing 10 years which produces a graph somewhat similar to yours at 2:58 but with the market cap $SPX clearly ahead of equal weight.

[@almontalvo8265]

Thanks!

[@wealthadventures]

Thank you! Much appreciated.

[@daviswatkinsyt]

Dave, I'll have to check out ROE. Those equal weighted ETFs look interesting. Also, thanks for the shoutout at the end!

[@wealthadventures]

Thanks Davis!

[@SummitMan165]

Good episode with a good investment idea to diversify risk!

[@wealthadventures]

Thanks!

[@mikesgarage394]

Looks interesting.

[@Bullseye120]

Dave, great video as usual. I will strongly consider ROE. It looks like EQWL has a lower expense ratio though and since these are long term goal growth potential positions, EQWL may be the better one own in the category.....thoughts?

[@wealthadventures]

I think both are good options and would depend on if you agree with the selection process for ROE. Time will tell!

[@tchuloguzman432]

I think QGRW is close to this etf for quality growth but market weighted both have 100 holdings

[@wealthadventures]

Thanks! I'll check it out.

[@marcalvarado1915]

I like the diversification away from just VOO and will consider something like ROE. One ETF that I have been happy with that is beating VOO is MTUM. I am curious as to your thoughts on momentum investing.

[@wealthadventures]

Thank for the comment. I will check out MTUM!

[@casrogue]

I'll stick with good ol' SCHG LOL

[@wealthadventures]

It keeps chugging along... Maybe I should say SCHuGging along.

[@finiteloops8610]

The earnings growth expectations slide is fascinating. If you have time, perhaps you might share how on earth you found this if not on Seeking Alpha? Re ROE it looks good, especially after a market crash. However, I'd only want something like this if it had options, which, unfortunately, ROE is without. Another excellent video, thanks!

[@wealthadventures]

That chart came from NewEdge Wealth and is part of a presentation Astoria shared with me for an upcoming convention.

[@kevinhuff]

There is the phrase "Let your winners run" ROE sells the winners and gives to the non winners. That said , most ETF's starve the non winners and pile on to the winners pumping the PE ratio sky high. Also not best. How about a fund that does what my M1 account does for me? Lets my winners run while favoring those I don't have as much in.

[@wealthadventures]

I do like my M1 account... I think if you agree with the process ROE uses you can buy into the idea. Find the best 100 stocks, buy them all, give them a quarter, and reset. Even if you manage it yourself, at some point it is best to re-balance but perhaps that timeframe is longer.

[@fialee8ca132]

The problem with equal weight is that you'll miss out on future explosive growth on the next Nvidia or Mag7-like stocks since they'll be continually rebalanced to 1% of fund each year. I get what you are saying... maybe a fund with top 100 earnings growth equal weighted with rebalancing every three years would capture more upside, while reducing exposure over the long term.

[@wealthadventures]

That would be an interesting backtest for ROE - See what the optimal time would be to re-balance over the last 25 years.

[@fialee8ca132]

@@wealthadventures I think equal weight rebalancing can be useful in certain cases. For example, one of the reasons I like a FEPI is that it has monthly rebalancing if their holdings so there is no one stock that is overweighted. So many tech ETFs have NVIDIA up to 25%-30% of the fund... which was great during the run up, but it's valuation today is pretty rich. That said, I'm not sure if FEPI is sustainable longer-term.

[@MrSummitville]

@@wealthadventures I am willing to bet that ... Astoria Portfolio Advisors has already done that.

[@amirsal2629]

Hi there thanks for Your videos I’ve started selling out options for a while now . Just wondering would you be able to recommended any good website that do the research for you and send you emails in relation to option ideas ?

[@wealthadventures]

Hi. I don't use any services like that. I imagine there are some but I have not tried them.

[@echoeversky]

The P/E out there is obscene.

[@wealthadventures]

Some stocks certainly look expensive!