VALQ - AI Analysis

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

Rating:73Outperform

Price Target:

$72.00

The American Century STOXX U.S. Quality Value ETF (VALQ) has a solid overall rating, reflecting its focus on high-quality, value-driven investments. Strong holdings like Cisco (CSCO), which benefits from growth in AI infrastructure and strategic innovation, and Comcast (CMCSA), with its attractive valuation and robust performance in media and parks, significantly boost the fund's rating. However, weaker holdings such as Lowe's (LOW), impacted by high leverage and bearish technical indicators, slightly weigh on the overall score. Investors should note the ETF's diversified holdings, which help mitigate risks from individual stock challenges.

Positive Factors

Strong Top Holdings

Several key positions, such as Johnson & Johnson and Gilead Sciences, have delivered strong year-to-date performance, supporting the fund's overall returns.

Sector Diversification

The ETF is spread across multiple sectors, including Technology, Health Care, and Consumer Defensive, reducing reliance on any single industry.

Low Expense Ratio

The fund has a competitive expense ratio of 0.29%, making it cost-efficient compared to many actively managed funds.

Negative Factors

High Geographic Concentration

With nearly 100% exposure to U.S. companies, the ETF lacks diversification across global markets.

Mixed Performance of Holdings

Some top holdings, such as Comcast and Merck, have underperformed year-to-date, potentially dragging on overall returns.

Overweight in Technology

Technology accounts for nearly 30% of the portfolio, making the fund sensitive to downturns in this sector.

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

AUM263.18M

RegionNorth America

Expense Ratio0.29%

Beta0.76

IssuerAmerican Century

Inception DateJan 11, 2018

Dividend Yield1.85%

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. Volume10,106

30 Day Avg. Volume6,790

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

72.80

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering233

VALQ Summary

The American Century STOXX U.S. Quality Value ETF (VALQ) is an investment fund that focuses on U.S. companies with strong financial health and attractive valuations. It follows the American Century U.S. Quality Value Index, aiming to identify high-quality, undervalued stocks across various industries. Some well-known companies in this ETF include IBM and Cisco Systems. Investors might consider VALQ for its potential to deliver long-term growth while offering diversification across sectors like technology, healthcare, and consumer goods. However, new investors should be aware that the ETF’s performance can fluctuate with the overall market, especially since it heavily emphasizes value stocks.

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’s portfolio leans heavily into technology and healthcare, with names like Cisco and Johnson & Johnson driving steady performance thanks to innovation and robust growth in their respective sectors. Gilead Sciences is another standout, rising on optimism around its HIV and oncology focus. However, consumer-focused stocks like Lowe’s and Procter & Gamble have been lagging, weighed down by macroeconomic pressures and slowing growth. With a clear U.S. focus and a value-driven strategy, the fund balances rising stars with a few names losing momentum, offering a mix of stability and opportunity.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
IBM	International Business Machines	3.37%	$8.85M	$289.82B	49.99%	77 Outperform
CSCO	Cisco Systems	2.90%	$7.63M	$288.23B	33.12%	79 Outperform
MRK	Merck & Company	2.71%	$7.13M	$215.51B	-15.68%	79 Outperform
QCOM	Qualcomm	2.53%	$6.66M	$191.26B	8.90%	78 Outperform
LOW	Lowe's	2.48%	$6.51M	$134.50B	-8.41%	60 Neutral
JNJ	Johnson & Johnson	2.29%	$6.03M	$455.48B	18.26%	78 Outperform
CMCSA	Comcast	2.29%	$6.01M	$100.87B	-37.44%	69 Neutral
PG	Procter & Gamble	2.18%	$5.74M	$349.53B	-9.44%	74 Outperform
DOX	Amdocs	2.14%	$5.62M	$9.22B	-4.44%	74 Outperform
GILD	Gilead Sciences	2.08%	$5.47M	$146.96B	33.35%	75 Outperform

VALQ Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

64.15

Positive

100DMA

63.04

Positive

200DMA

61.58

Positive

Market Momentum

MACD

0.14

Positive

RSI

49.50

Neutral

STOCH

24.81

Neutral

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 64.31, equal to the 50-day MA of 64.15, and equal to the 200-day MA of 61.58, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.81 is Neutral, 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	―	―	$263.18M	0.29%	73 Outperform
VFVA	―	―	$711.76M	0.13%	68 Neutral
VLU	―	―	$548.71M	0.12%	72 Outperform
LSVD	―	―	$533.85M	0.40%	75 Outperform
QVAL	―	―	$452.09M	0.29%	73 Outperform
AIVL	―	―	$378.35M	0.38%	71 Outperform

Performance Comparison

VALQ

American Century STOXX U.S. Quality Value ETF

64.26

4.48

7.49%

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.

Disclaimer

This 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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