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Is American Century U.S. Quality Value ETF (VALQ) a Strong ETF Right Now?
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A smart beta exchange traded fund, the American Century U.S. Quality Value ETF (VALQ - Free Report) debuted on 01/11/2018, and offers broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by American Century Investments, VALQ has amassed assets over $257.36 million, making it one of the average sized ETFs in the Style Box - All Cap Value. VALQ, before fees and expenses, seeks to match the performance of the AMERICAN CENTURY U.S. QUALITY VALUE INDX.
The American Century U.S. Quality Value Index seeks to select securities of large and mid-capitalization companies that are undervalued or have sustainable income.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for VALQ are 0.29%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.90%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
VALQ's heaviest allocation is in the Information Technology sector, which is about 28.3% of the portfolio. Its Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, Intl Business Machines Corp Common Stock Usd.2 (IBM) accounts for about 3.13% of total assets, followed by Cisco Systems Inc Common Stock Usd.001 (CSCO) and Merck + Co. Inc. Common Stock Usd.5 (MRK).
The top 10 holdings account for about 24.48% of total assets under management.
Performance and Risk
The ETF has added roughly 3.65% so far this year and is up roughly 1.83% in the last one year (as of 11/21/2025). In the past 52-week period, it has traded between $54.09 and $65.32
VALQ has a beta of 0.89 and standard deviation of 13.00% for the trailing three-year period. With about 233 holdings, it effectively diversifies company-specific risk .
Alternatives
American Century U.S. Quality Value ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $7.33 billion in assets, iShares Core S&P U.S. Value ETF has $22.88 billion. FDVV has an expense ratio of 0.16% and IUSV changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is American Century U.S. Quality Value ETF (VALQ) a Strong ETF Right Now?
A smart beta exchange traded fund, the American Century U.S. Quality Value ETF (VALQ - Free Report) debuted on 01/11/2018, and offers broad exposure to the Style Box - All Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by American Century Investments, VALQ has amassed assets over $257.36 million, making it one of the average sized ETFs in the Style Box - All Cap Value. VALQ, before fees and expenses, seeks to match the performance of the AMERICAN CENTURY U.S. QUALITY VALUE INDX.
The American Century U.S. Quality Value Index seeks to select securities of large and mid-capitalization companies that are undervalued or have sustainable income.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for VALQ are 0.29%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.90%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
VALQ's heaviest allocation is in the Information Technology sector, which is about 28.3% of the portfolio. Its Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, Intl Business Machines Corp Common Stock Usd.2 (IBM) accounts for about 3.13% of total assets, followed by Cisco Systems Inc Common Stock Usd.001 (CSCO) and Merck + Co. Inc. Common Stock Usd.5 (MRK).
The top 10 holdings account for about 24.48% of total assets under management.
Performance and Risk
The ETF has added roughly 3.65% so far this year and is up roughly 1.83% in the last one year (as of 11/21/2025). In the past 52-week period, it has traded between $54.09 and $65.32
VALQ has a beta of 0.89 and standard deviation of 13.00% for the trailing three-year period. With about 233 holdings, it effectively diversifies company-specific risk .
Alternatives
American Century U.S. Quality Value ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Fidelity High Dividend ETF (FDVV) tracks Fidelity Core Dividend Index and the iShares Core S&P U.S. Value ETF (IUSV) tracks S&P 900 Value Index. Fidelity High Dividend ETF has $7.33 billion in assets, iShares Core S&P U.S. Value ETF has $22.88 billion. FDVV has an expense ratio of 0.16% and IUSV changes 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Value
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.