American Century U.S. Quality Value ETF

American Century U.S. Quality Value ETF (VALQ) tracks the American Century U.S. Quality Value Index. The index is a rules-based mix of about 200 to 300 large and mid-sized U.S. companies. It first screens them for profitability and financial strength, then picks those with low valuations or above-average dividends. The 0.29% expense ratio is above the 0.19% average for similar funds, and the fund trades heavily, with 147% portfolio turnover.

• Over the year to Oct 27, 2026, VALQ returned +12.5%, 9th of 9 among similar funds.
• Its 5-year annualized return was +9.7%.
• Its worst full calendar year was 2022 (-7.7%); its best was 2021 (+27.1%).
• The deepest fall in its price history was 20.2% (Apr 20, 2022 to Sep 30, 2022), recovered by Dec 11, 2023.

As of Aug 31, 2026, the fund held 222 securities; the ten largest made up 21.89% of assets.

By sector

• Over the three months to Aug 31, 2026, investors withdrew a net $952K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.78%, +0.31%, +3.40%.

VALQ is an index fund, but its index is built and maintained by American Century Investment Management, which is also the fund's advisor. It starts with the S-Network US Equity Large/Mid-Cap 1000 Index, which holds 1,000 large and mid-sized U.S. stocks. A quality screen first removes the weakest companies based on profitability, earnings quality, management quality, debt (leverage) and momentum, meaning recent price trends.

The remaining stocks are then judged in two ways. A value score compares each stock with others in its own industry on measures such as earnings yield and cash flow yield. A separate income screen drops the dividend payers with the lowest yields. A quantitative model then combines the value and income picks and sets their weights to balance risk against expected return. The index typically holds 200 to 300 stocks. As of August 31, 2026, the fund held 222, and its 10 largest positions made up about 22% of assets.

The index and the fund are rebalanced monthly and reconstituted (their membership reset) quarterly, which helps explain the 147% turnover. The fund keeps at least 80% of assets in index stocks. It may hold a representative sample of the index rather than every stock, and it may use futures contracts to invest spare cash or track the index more closely. It held no derivatives as of August 31, 2026. It never takes defensive positions when markets fall.

• VALQ charges 0.29% a year, versus an average of 0.19% for the similar funds below (7th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $369 over 10 years (assuming a 5% annual return).

Its screened mix of lower-priced, dividend-paying companies can offset a portfolio weighted toward fast-growing technology stocks, but its strategy is too narrow and too costly to serve as a whole core holding.

VALQ could balance growth-heavy holdings with steadier companies such as Merck, Procter & Gamble and Verizon. Its beta, a measure of how much it moves with the overall market, was 0.58 over the year to October 27, 2026. The fund launched in 2018, so it has no 2008 record. It lost 26.89% in the first quarter of 2020 but finished that year up 0.5%. Its worst calendar year was 2022, a 7.57% loss. Within that year, though, it fell 20.2% from April to September and did not recover until December 2023, about 14 months later. Anyone drawing money from it during that stretch would have been cashing out at a loss. The fund pays dividends quarterly and yielded 1.66% over the 12 months to October 27, 2026. The SEC's standard example puts costs at $30 for the first year on $10,000. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.

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