Alpha Architect U.S. Quantitative Value ETF

Alpha Architect U.S. Quantitative Value ETF (QVAL) is an actively managed fund. It follows fixed rules to hold 50 to 200 cheap, profitable U.S. stocks, picked mainly by how low they are priced relative to operating earnings. As of June 30, 2026, it held 50 stocks at about 2% each. Its 0.28% expense ratio is well below the 0.72% charged by its closest match, Bushido Capital US Equity ETF, but its concentrated value approach has led to deep drops.

• Over the year to Oct 27, 2026, QVAL returned +36.7%.
• Its 5-year annualized return was +14.3% and its 10-year +12.8%.
• In the 2020 COVID crash it fell 46.8% and regained its old high 9.5 months after the low.
• Its worst full calendar year was 2018 (-17.3%); its best was 2021 (+34.4%).
• The deepest fall in its price history was 51.4% (Jan 26, 2018 to Mar 23, 2020), recovered by Mar 12, 2021.

As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 20.67% of assets.

By sector

• Over the three months to Jun 30, 2026, investors added a net $8.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.38%, +2.53%, -0.33%.

QVAL does not track an index. Its sub-adviser, Alpha Architect, LLC, picks stocks using a step-by-step computer model. It starts with liquid U.S.-listed stocks, usually worth more than $1 billion each. Then it removes hard-to-trade stocks, other ETFs and companies with less than 12 months of financial data. Next it screens out possible "value traps": cheap-looking firms that show signs of financial distress or questionable accounting. One example is net income far above free cash flow.

The remaining stocks are ranked by enterprise multiple. That is a company's total enterprise value (market value plus debt minus cash) divided by earnings before interest and taxes. A lower multiple means a cheaper stock. The model also looks at book-to-market, cash flow to price and earnings to price. Quality screens then pick the final 50 to 200 stocks, based on current profitability, stability and recent business improvements. At least 80% of assets must sit in the 500 cheapest of the 1,500 largest U.S. stocks.

The portfolio is generally rebalanced each month. Portfolio turnover was 332% per the prospectus, so holdings change often. As of June 30, 2026, the fund held 50 stocks, with no derivatives and 0.07% in cash. The largest was Comcast at 2.14%, and the top 10 made up 20.67% of assets.

• QVAL charges 0.28% a year, versus an average of 0.72% for the similar funds below.
• Using the prospectus's standard example, $10,000 invested would cost about $29 in the first year and $356 over 10 years (assuming a 5% annual return).

It holds about 50 out-of-favor stocks in roughly equal amounts and has fallen by more than half from peak to trough, so it fits better as a smaller add-on than as a foundation.

QVAL could add a focused tilt toward cheap, profitable U.S. companies alongside a broad stock fund. The ride has been rough at times. The fund launched in 2014, so it has no record from 2008. In the 2020 COVID crash it fell 46.8% in about a month and took about 9.5 months to recover. In 2022 it dropped 26% from March to September, and recovery took about 10.3 months. Its deepest decline was 51.4%, from January 2018 to March 2020. Its worst calendar year was 2018, at -16.54%. Anyone forced to withdraw money during a slump like these would lock in large losses.

Income is modest. The trailing yield was 1.4% as of October 27, 2026, and the fund pays quarterly. In the SEC's standard example, costs on $10,000 come to $29 in the first year and $356 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.