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

Overview

The American Century STOXX U.S. Quality Value ETF (VALQ) seeks to track the investment results of the STOXX USA Quality Value Index, which is designed to represent the performance of U.S. companies with relatively high quality and value scores.

Reputation and Reliability

American Century Investments is a well-established investment management firm with a long history and a focus on research-driven investment strategies.

Management Expertise

American Century has a dedicated team of portfolio managers and analysts with expertise in quantitative investing and factor-based strategies.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the STOXX USA Quality Value Index.

Investment Approach and Strategy

Strategy: The ETF tracks the STOXX USA Quality Value Index, which employs a rules-based methodology to select U.S. companies with favorable quality and value characteristics.

Composition The ETF primarily holds stocks of large- and mid-capitalization U.S. companies.

Market Share: VALQ's market share is relatively smaller compared to established broad market ETFs.

Total Net Assets (AUM): 183560726

Key Competitors

• IVV (iShares Core S&P 500 ETF)
• SPY (SPDR S&P 500 ETF)
• QUAL (iShares Edge MSCI USA Quality Factor ETF)
• VTV (Vanguard Value ETF)
• IWF (iShares Russell 1000 Growth ETF)

Competitive Landscape

The ETF market is highly competitive. VALQ's focuses on a quality and value factor tilt differentiates it, but it competes with broad market ETFs and other factor-based ETFs. VALQ's competitive advantage lies in its factor selection methodology, while a disadvantage is its smaller AUM and trading volume compared to larger ETFs.

Historical Performance: Historical performance data not available without a specific timeframe.

Benchmark Comparison: The ETF's performance should be compared to the STOXX USA Quality Value Index to gauge its tracking effectiveness.

Expense Ratio: 0.29

Average Trading Volume

The average trading volume of VALQ can vary but is generally moderate to low compared to more popular ETFs.

Bid-Ask Spread

The bid-ask spread can fluctuate based on market conditions, but tends to be slightly wider than more liquid ETFs.

Market Environment Factors

Economic growth, interest rates, and investor sentiment towards quality and value stocks can impact VALQ's performance.

Growth Trajectory

VALQ's growth trajectory is dependent on its ability to attract investors seeking exposure to quality and value factors, and on the relative performance of these factors.

Competitive Edge

VALQ offers a targeted exposure to U.S. companies exhibiting both quality and value characteristics, providing a potential advantage in certain market environments. Its rules-based index methodology provides a transparent and systematic approach to factor investing. American Century's established reputation and research-driven approach further enhance its appeal. This combination aims to provide investors with a differentiated factor investing option.

Volatility

VALQ's volatility will depend on the volatility of its underlying holdings, which are typically large- and mid-cap U.S. stocks.

Market Risk

VALQ is subject to market risk, which is the risk that the overall stock market declines, impacting the value of its holdings. Exposure to quality and value factors may also underperform during periods when growth stocks are favored.

Ideal Investor Profile

VALQ is suitable for investors seeking exposure to quality and value factors in the U.S. equity market, who are looking for a targeted approach to factor investing.

Market Risk

VALQ may be suitable for long-term investors seeking to enhance their portfolio with factor-based strategies or for active traders who believe that quality and value stocks are poised to outperform.

The American Century STOXX U.S. Quality Value ETF (VALQ) seeks to track the STOXX USA Quality Value Index, providing exposure to U.S. companies with strong quality and value characteristics. It is managed by American Century Investments and offers a rules-based, transparent approach to factor investing. With a moderate expense ratio, VALQ is suitable for investors seeking a targeted exposure to quality and value stocks. Its performance is dependent on the relative performance of these factors and the overall market environment, offering diversification for portfolios seeking long-term capital appreciation.

Data Sources:

• American Century Investments website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.