VALQ ETF: What Is It? Returns, Expense Ratio, Holdings and Alternative ETFs
The American Century U.S. Quality Value ETF (VALQ) is a passive product that invests in US value stocks with strong financial health. Its combination of quality and value, and how its selection method differs from funds tied to QUAL, SPHQ and JQUA, are the key criteria for choosing it.
SubscribeWhat Is the American Century U.S. Quality Value ETF?
This passive ETF selects undervalued US value stocks from among companies with high quality metrics, such as profitability and financial stability. By applying both quality and value criteria, it gives investors exposure to high-quality value stocks.
It suits investors who want to invest in US value stocks with strong financial health and are willing to tolerate relative weakness when growth stocks lead the market.
The ETF is managed by American Century using a passive (index-tracking) approach.
How Does the American Century U.S. Quality Value ETF Invest?
| Item | Details |
|---|---|
| Investment Target | US quality value stocks |
| Management Style | Passive (Quality + Value) |
| Selection Criteria | Profitability and financial stability + undervaluation |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.29% |
The ETF tracks an index that first screens for stocks with high quality metrics, such as profitability and financial stability, and then overweights the undervalued value stocks among them. Unlike a simple value index, it also weighs financial health, so it filters out undervalued stocks with high distress risk and concentrates on high-quality value stocks.
- Combines quality and value criteria
- Uses financial health to exclude distressed, undervalued stocks
American Century U.S. Quality Value ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $196.8M, and the total expense ratio is 0.29% per year.
The main point of comparison is that it applies quality and value together, unlike a simple value ETF or a standalone quality ETF.
American Century U.S. Quality Value ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeQuality value stocks move differently depending on interest rates, the economic cycle and style rotation. Value strategies tend to be strong when value stocks are in favor and weak when growth stocks lead. With the added quality criterion, the fund can also hold up relatively well in volatile periods.
Fund flows into quality value stocks vary with style rotation, risk appetite and demand for high-quality stocks, and money sometimes moves into high-quality value stocks when volatility rises. It is also worth watching how performance shifts with interest rates and style rotation.
American Century U.S. Quality Value ETF Pros and Cons
The combination of quality and value is its strength, while weakness in growth-led markets, tracking differences and market risk are the considerations.
💪 Key Strengths
⚠️ Points to Watch
American Century U.S. Quality Value ETF Alternatives and Related Products
For exposure to large-cap value stocks without combining quality and value, direct substitutes include VTV and IWD, and for a different value factor exposure, products such as VLUE are also worth comparing. The three products shown in the table, QUAL, SPHQ and JQUA, all focus on the quality factor and are run without a value overlay, which is how they differ. This ETF's distinguishing criterion is that it applies quality and value together.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 QUAL | iShares MSCI USA Quality Factor ETF | $54.79 | -3.5% | $48.0B | 0.15% | 0.22% | +12.2% |
 SPHQ | Invesco S&P 500 Quality ETF | $81.08 | -4.2% | $18.9B | 0.15% | 1.07% | +10.0% |
 DGRW | WisdomTree U.S. Quality Dividend Growth Fund | $96.44 | -3.6% | $17.2B | 0.28% | 1.27% | +9.0% |
 JQUA | JPMorgan U.S. Quality Factor ETF | $73.40 | -3.9% | $9.8B | 0.12% | 1.08% | +17.9% |
 QGRW | WisdomTree U.S. Quality Growth Fund | $61.91 | -5.7% | $3.2B | 0.28% | 0.08% | +4.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| QCOM | Qualcomm Inc | 0.04% | $156.75 | -9.5% | $167.4B | 12.3 | 2.41% |
| CSCO | Cisco Systems Inc | 0.06% | $95.72 | -7.6% | $376.8B | 28.8 | 1.78% |
| LMT | Lockheed Martin Corp | 0.03% | $576.16 | -3.2% | $133.1B | 20.5 | 2.43% |
| MRK | Merck & Co Inc | 0.08% | $146.94 | -2.3% | $362.5B | 150.1 | 2.32% |
| LOW | Lowe's Cos. Inc | 0.03% | $227.24 | -0.9% | $127.5B | 19.2 | 2.18% |
| BMY | Bristol-Myers Squibb Co | 0.03% | $63.13 | -1.6% | $129.0B | 14.0 | 4.02% |
| VZ | Verizon Communications Inc | 0.03% | $46.12 | -0.1% | $191.1B | 11.8 | 6.12% |
American Century U.S. Quality Value ETF Investor Checkpoints
Here are the points to review before investing in VALQ. The combination of quality and value is attractive, but relative weakness when growth stocks lead, tracking differences and market risk should be checked in advance. It is also a good idea to compare it with simple value or standalone quality products.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🏅 Quality | Review profitability and financial stability screening | Quality reflected |
| 📊 Value Tilt | Review undervalued value exposure | Value reflected |
| 🔄 Style Rotation | Review value and growth phases | Needs checking |
| 📊 Tracking Difference | Review against a conventional value index | Needs checking |
Relative weakness when growth stocks lead and tracking differences from the quality and value screening are the main variables for long-term performance, and the screening means its holdings can differ from a conventional value index. Even with a focus on high-quality value stocks, losses can occur in a market crash.
It is a suitable candidate for investors who want to concentrate on US value stocks with strong financial health. For a focus on the quality factor, consider products such as QUAL and SPHQ, and if you want quality and value combined, it is advisable to compare them with this product before choosing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 10, 2026.
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