Core Viewpoint - The American Century U.S. Quality Value ETF (VALQ) is positioned to succeed amid rising global volatility, with its recent index changes indicating a strategic outlook on market conditions [1] Fund Overview - VALQ was launched in 2018 and charges a fee of 29 basis points to track the American Century U.S. Quality Value Index [1] - The fund has achieved a long-term return of 9.7%, outperforming the five-year average of the large-cap value equities category [1] - The index focuses on screening stocks for quality, value, and income, aiming to create a portfolio that balances income generation with significant value opportunities [1] Rebalance Changes - At the end of February, the index increased the weights of five stocks and decreased the weights of five others, without adding or dropping any constituents [1] - United Parcel Service, Inc. (UPS) experienced the largest weight increase, rising from 0.18% to 1.44% [1] - Paychex (PAYX) and Altria Group (MO) also saw significant increases, with weights growing to 1.5% and 1.25%, respectively [1] - The largest decrease was for Goldman Sachs Group (GS), which fell from 1.59% to 0.17% [1] - Alphabet, Inc. (GOOGL) also saw a notable decrease, dropping from 1.53% to 0.13% [1] - Four of the five stocks that decreased in weight fell to 0.25% or less, including Honeywell International (HON) and Walmart Inc. (WMT) [1] Market Implications - The reduction in exposure to major technology stocks and some consumer discretionary stocks may reflect concerns about broader economic conditions [1] - VALQ could be a noteworthy option for investors seeking value ETF opportunities in the current market landscape [1]

Core Insights - The American Century U.S. Quality Value ETF (VALQ) debuted on January 11, 2018, and provides broad exposure to the Style Box - All Cap Value category of the market [1] - VALQ is managed by American Century Investments and aims to match the performance of the American Century U.S. Quality Value Index, focusing on undervalued large and mid-cap companies with sustainable income [5] Fund Characteristics - VALQ has accumulated over $251.3 million in assets, making it one of the larger ETFs in its category [5] - The fund has an annual operating expense ratio of 0.29%, which is competitive within its peer group, and a 12-month trailing dividend yield of 1.73% [6] - The fund's portfolio is heavily allocated to the Information Technology sector, which represents 26% of its holdings, followed by Healthcare and Consumer Staples [7] Holdings and Performance - Cisco Systems Inc (CSCO) is the largest individual holding at approximately 2.81% of total assets, with the top 10 holdings accounting for about 25.2% of VALQ's total assets [8] - Year-to-date, VALQ has increased by 4.56% and has risen by 12.57% over the last 12 months as of July 11, 2025, with a trading range between $54.09 and $64.64 in the past 52 weeks [10] - The fund has a beta of 0.87 and a standard deviation of 14.59% over the trailing three-year period, indicating effective diversification of company-specific risk with approximately 231 holdings [10] Alternatives - While VALQ is a viable option for investors looking to outperform the Style Box - All Cap Value segment, there are alternative ETFs such as Fidelity High Dividend ETF (FDVV) and iShares Core S&P U.S. Value ETF (IUSV) that may offer lower expense ratios and different risk profiles [11][12]