Exchange-traded funds (ETFs) can provide investors with good diversification, but in many cases, they can still be too reliant on some heavily valued stocks. For long-term investors, it can be crucial to find funds which aren’t overly exposed to big tech, specifically, the “Magnificent Seven.”

The Astoria US Equal Weight Quality Kings ETF (NASDAQ:ROE) offers investors a way to reduce overexposure to the Magnificent Seven stocks while maintaining exposure to high-quality U.S. companies. Unlike the S&P 500, which is heavily weighted toward a handful of tech giants, ROE equally weights its holdings to diversify risk.

ROE holds 100 large and mid-cap U.S. stocks, each weighted at approximately 1%. This prevents excessive reliance on any single company, addressing concerns that the S&P 500’s top 10 stocks—mostly big tech. Tech stocks still account for a reasonably large 36% of the index’s weight, but the fund’s performance isn’t going to be dictated by a few stocks. ROE’s top holdings at the end of 2024 included Broadcom (NASDAQ:AVGO), Tesla (NASDAQ:TSLA), and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL).

Investors seeking broad market exposure without overconcentration in big tech may find ROE an appealing option. It has an expense ratio of 0.49%, which is a bit higher than some funds out there but given its more diversified strategy, it may be justifiable as the fund could offer you more protection amid a downturn in the markets, especially in tech. Over the past 12 months, the ETF has risen by 19%. This can be a great investment to put into your portfolio for both the short and long term.

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