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VALQ - ETF AI Analysis

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VALQ

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

Rating:73Outperform
Price Target:
VALQ, the American Century STOXX U.S. Quality Value ETF, earns a solid overall rating thanks to several high-quality, cash-generative holdings like Verizon, Merck, Cisco, Qualcomm, IBM, and Gilead, which combine strong financial performance with generally positive outlooks in areas such as AI, healthcare pipelines, and communications technology. The rating is held back somewhat by names like Procter & Gamble and Lowe’s, where valuation concerns, weaker technical trends, and slower or declining revenue growth introduce more uncertainty. The main risk factor is that many top holdings face issues like high leverage, valuation pressure, or product/market challenges, which could weigh on returns if conditions worsen.
Positive Factors
Solid Recent Performance
The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Strong Top Holdings Mix
Several of the largest positions, including companies like Lowe’s, Lockheed Martin, Lam Research, and Alphabet, have delivered strong or steady performance, helping support the fund’s returns.
Broad Sector Diversification
Holdings spread across technology, health care, consumer, industrial, financial, and other sectors help reduce the impact of weakness in any single industry.
Negative Factors
High U.S. Concentration
With almost all assets invested in U.S. companies, the fund offers little geographic diversification and is heavily tied to the U.S. economy.
Tech Sector Tilt
A large allocation to technology stocks means the ETF may be more sensitive to swings in the tech sector than a more evenly balanced fund.
Mixed Performance Among Top Holdings
Some major positions, such as Cisco and IBM, have shown weak year-to-date performance, which can drag on overall returns if this continues.

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

VALQ Summary

VALQ is an exchange-traded fund that follows the American Century U.S. Quality Value Index, focusing on U.S. companies that look financially strong but reasonably priced. It owns a mix of sectors like technology, health care, and consumer companies, with well-known names such as Alphabet (Google) and Lowe’s among its top holdings. Someone might invest in VALQ to get broad, diversified exposure to the U.S. stock market while tilting toward “value” stocks that may have room to grow. A key risk is that its stock prices can rise or fall with the overall market and value-style stocks can lag for long periods.
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. value with a tech tilt, and its story right now is about a few clear winners doing the heavy lifting. Applied Materials and Lam Research are powering the fund, riding strong momentum in chip equipment and AI-related demand. Defense giant Lockheed Martin and steady-eddy Merck are also rising, giving the portfolio a mix of industrial strength and healthcare resilience. On the flip side, IBM and Qualcomm are losing steam, acting as mild brakes rather than full-on anchors in this broadly diversified, U.S.-only lineup.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Verizon2.88%$8.73M$213.08B14.22%
81
Outperform
Lockheed Martin2.81%$8.50M$146.41B35.60%
70
Outperform
Bristol-Myers Squibb2.69%$8.15M$121.60B-0.32%
78
Outperform
Cisco Systems2.60%$7.87M$313.11B31.46%
77
Outperform
Merck & Company2.58%$7.81M$286.48B22.33%
80
Outperform
International Business Machines2.16%$6.52M$240.24B3.71%
79
Outperform
Procter & Gamble2.13%$6.43M$352.04B-9.68%
69
Neutral
Qualcomm2.12%$6.42M$140.41B-15.80%
80
Outperform
Gilead Sciences2.02%$6.12M$179.26B31.00%
78
Outperform
Lowe's1.81%$5.48M$134.47B7.52%
69
Neutral

VALQ Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
68.09
Negative
100DMA
66.42
Negative
200DMA
64.32
Positive
Market Momentum
MACD
-0.68
Positive
RSI
34.76
Neutral
STOCH
11.94
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VALQ, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 67.74, equal to the 50-day MA of 68.09, and equal to the 200-day MA of 64.32, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 34.76 is Neutral, neither overbought nor oversold. The STOCH value of 11.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VALQ.

VALQ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$304.73M0.29%
73
Outperform
$747.44M0.13%
69
Neutral
$609.71M0.12%
72
Outperform
$549.31M0.40%
75
Outperform
$472.81M0.28%
73
Outperform
$381.52M0.38%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VALQ
American Century STOXX U.S. Quality Value ETF
64.99
5.05
8.43%
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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