VALQ - ETF AI Analysis

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

Rating:73Outperform

Price Target:―

The American Century STOXX U.S. Quality Value ETF (VALQ) demonstrates strong performance driven by holdings like Merck & Company (MRK) and Qualcomm (QCOM), which benefit from robust financial performance, strategic advancements, and positive earnings outlooks. However, the fund's overall rating is slightly tempered by holdings such as Lockheed Martin (LMT), which faces challenges like declining profit margins and supply chain issues. Investors should note the ETF's exposure to high-leverage companies, which could pose risks in volatile markets.

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)

AUM302.95M

RegionNorth America

Expense Ratio0.29%

Beta0.74

IssuerAmerican Century

Inception DateJan 11, 2018

Dividend Yield1.82%

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. Volume18,286

30 Day Avg. Volume11,466

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

76.16

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering225

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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

The American Century STOXX U.S. Quality Value ETF (VALQ) leans heavily into technology, with names like Cisco and IBM driving recent gains thanks to their focus on AI and cloud innovation. Goldman Sachs has also been a standout, benefiting from strong financial performance and strategic initiatives. However, Accenture and Lowe’s are holding the fund back, with Accenture facing sector-specific challenges and Lowe’s struggling with declining revenue growth. With a clear U.S. focus and a tilt toward value-oriented sectors like health care and consumer cyclical, this ETF balances steady performers with a few lagging names.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
LOW	Lowe's	2.84%	$8.60M	$151.96B	6.83%	69 Neutral
LMT	Lockheed Martin	2.60%	$7.87M	$127.56B	15.36%	70 Outperform
MRK	Merck & Company	2.55%	$7.71M	$271.01B	8.16%	80 Outperform
CSCO	Cisco Systems	2.30%	$6.95M	$292.42B	27.20%	77 Outperform
IBM	International Business Machines	2.23%	$6.74M	$291.81B	37.78%	79 Outperform
GS	Goldman Sachs Group	2.00%	$6.06M	$284.80B	54.83%	73 Outperform
QCOM	Qualcomm	2.00%	$6.06M	$181.29B	0.54%	80 Outperform
GOOGL	Alphabet Class A	1.98%	$5.98M	$4.01T	77.14%	85 Outperform
SCHW	Charles Schwab	1.96%	$5.93M	$181.07B	37.36%	74 Outperform
LRCX	Lam Research	1.91%	$5.77M	$276.83B	181.52%	77 Outperform

VALQ Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

65.54

Positive

100DMA

64.69

Positive

200DMA

62.34

Positive

Market Momentum

MACD

0.75

Negative

RSI

65.29

Neutral

STOCH

93.09

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 67.11, equal to the 50-day MA of 65.54, and equal to the 200-day MA of 62.34, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 65.29 is Neutral, neither overbought nor oversold. The STOCH value of 93.09 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	―	―	$302.95M	0.29%	―
VFVA	―	―	$767.94M	0.13%	―
VLU	―	―	$591.45M	0.12%	―
LSVD	―	―	$563.37M	0.40%	―
QVAL	―	―	$463.26M	0.29%	―
AIVL	―	―	$386.67M	0.38%	―

Performance Comparison

VALQ

American Century STOXX U.S. Quality Value ETF

68.40

7.39

12.11%

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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