VALQ - ETF AI Analysis

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American Century STOXX U.S. Quality Value ETF (VALQ)

Rating:73Outperform

Price Target:―

VALQ, the American Century STOXX U.S. Quality Value ETF, has an overall rating that suggests it holds a generally solid mix of quality value stocks with some risks to watch. Strong holdings like Merck, Apple, Texas Instruments, and Cisco support the fund’s rating through robust financial performance, positive earnings outlooks, and strategic growth in areas like technology and healthcare. However, names such as Home Depot, Procter & Gamble, and Lockheed Martin introduce some drag due to bearish technical signals, high leverage, and valuation concerns, while the fund’s focus on U.S. large-cap sectors means investors should be mindful of sector and country concentration risk.

Positive Factors

Strong Top Holdings

Several of the largest positions, including major health care and technology companies, have shown strong gains this year, helping support the ETF’s overall performance.

Broad Sector Diversification

The fund spreads its investments across many sectors such as technology, health care, consumer stocks, and industrials, which helps reduce the impact if any one area of the market struggles.

Moderate Expense Ratio

The ETF’s expense ratio is reasonably low for an actively managed, factor-focused strategy, allowing investors to keep more of their returns compared with many higher-cost funds.

Negative Factors

Heavy Tilt Toward Technology

With a large share of assets in technology stocks, the fund could be more sensitive to swings in that sector than a more evenly balanced ETF.

Single-Country Concentration

Almost all of the ETF’s holdings are in U.S. companies, so investors do not get much diversification from international markets.

Mixed Performance Among Top Holdings

While many top positions have done well, at least one major holding has shown weak performance this year, which can drag on the fund’s overall results.

VALQ vs. SPDR S&P 500 ETF (SPY)

AUM326.61M

RegionNorth America

Expense Ratio0.29%

Beta0.69

IssuerAmerican Century

Inception DateJan 11, 2018

Dividend Yield1.72%

Asset ClassEquity

Index TrackedAmerican Century U.S. Quality Value Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume6,892

30 Day Avg. Volume4,924

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

82.31

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering224

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

VALQ Summary

VALQ is the American Century STOXX U.S. Quality Value ETF, which follows the American Century U.S. Quality Value Index. It invests in U.S. companies that appear financially strong but reasonably priced, aiming to give investors broad exposure to the overall U.S. stock market with a value tilt. The fund holds well-known names like Apple and Procter & Gamble, along with many other stocks across technology, health care, and consumer sectors. Someone might invest in VALQ for long-term growth and diversification using a value-focused approach. A key risk is that it can rise or fall with the stock market and is meaningfully exposed to tech-related companies.

How much will it cost me?The American Century STOXX U.S. Quality Value ETF (VALQ) has an expense ratio of 0.29%, which means you’ll pay $2.90 per year for every $1,000 invested. This is slightly higher than the average for passively managed ETFs because it uses a specialized strategy to focus on high-quality, undervalued U.S. companies. The added cost reflects the fund's emphasis on disciplined stock selection and value investing.

What would affect this ETF?The VALQ ETF, with its focus on high-quality U.S. value stocks, could benefit from economic stability and growth in sectors like technology and healthcare, which make up a significant portion of its holdings. However, rising interest rates or economic downturns might negatively impact consumer-focused and cyclical sectors, while regulatory changes could affect top holdings like IBM and Cisco. Broad exposure to the U.S. market provides diversification but also ties performance closely to domestic economic conditions.

VALQ Top 10 Holdings

VALQ leans heavily into U.S. health care and defensive blue chips, with Merck and Gilead quietly powering the fund thanks to their rising momentum and solid pipelines. Bristol-Myers is also helping, though its progress has been more steady than spectacular. On the flip side, Home Depot has been dragging performance, reflecting softer consumer and housing trends, while UnitedHealth has seen mixed results as it works through regulatory and reimbursement pressures. With all holdings U.S.-based and spread across health care, consumer staples, and industrials, the fund is diversified but clearly anchored in quality value names.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
MRK	Merck & Company	2.60%	$8.50M	$359.22B	69.32%	80 Outperform
UNH	UnitedHealth	2.51%	$8.21M	$340.46B	7.00%	72 Outperform
PG	Procter & Gamble	2.45%	$8.04M	$351.26B	1.03%	69 Neutral
BMY	Bristol-Myers Squibb	2.43%	$7.97M	$120.77B	34.48%	78 Outperform
HD	Home Depot	2.41%	$7.88M	$290.07B	-22.62%	66 Neutral
CSCO	Cisco Systems	2.36%	$7.72M	$466.76B	74.26%	77 Outperform
LMT	Lockheed Martin	2.33%	$7.62M	$117.61B	0.90%	70 Outperform
TXN	Texas Instruments	2.10%	$6.88M	$259.12B	65.25%	78 Outperform
AAPL	Apple	1.90%	$6.22M	$4.91T	37.25%	79 Outperform
UNP	Union Pacific	1.75%	$5.74M	$165.35B	23.46%	72 Outperform

VALQ Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

71.24

Negative

100DMA

70.06

Positive

200DMA

68.20

Positive

Market Momentum

MACD

-0.25

Negative

RSI

47.23

Neutral

STOCH

80.27

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VALQ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 70.32, equal to the 50-day MA of 71.24, and equal to the 200-day MA of 68.20, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VALQ.

VALQ Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
VALQ	―	―	$326.61M	0.29%	73 Outperform
VFVA	―	―	$919.03M	0.13%	69 Neutral
VLU	―	―	$770.91M	0.12%	71 Outperform
LSVD	―	―	$677.11M	0.40%	75 Outperform
QVAL	―	―	$620.96M	0.28%	72 Outperform
AIVL	―	―	$412.37M	0.38%	72 Outperform

Performance Comparison

VALQ

American Century STOXX U.S. Quality Value ETF

70.33

7.55

12.03%

VFVA

Vanguard U.S. Value Factor ETF

―

VLU

SPDR S&P 1500 Value Tilt ETF

―

LSVD

LSV Disciplined Value ETF

―

QVAL

Alpha Architect U.S. Quantitative Value ETF

―

AIVL

WisdomTree U.S. AI Enhanced Value Fund

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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