ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. VALQ Vaunted With Quality and Value
Core Strategies Channel
Share

VALQ Vaunted With Quality and Value

Tom LydonFeb 24, 2022
2022-02-24

The quality and value factors are two favored ideas among market observers, though neither is perfect, as highlighted by recent declines against the backdrop of broader market weakness.

Still, the combination of value at a time when broader market valuations are stretched and quality at a time when that’s a highly desirable trait could prove potent for some exchange traded funds, including the American Century STOXX U.S. Quality Value ETF (VALQ B).

VALQ, which follows the iSTOXX® American Century® USA Quality Value Index, is an enticing idea because for as alluring as they may be, quality and value are two distinct factors, and investors trying to blend those concepts on their own can find the task burdensome. Not all value stocks are quality names, and quality stocks are often pricey.

Add to that, recent declines in the quality space could be opening the door to opportunities for investors considering funds such as VALQ.

“Quality factor ETFs have reset considerably from highs and have one of the most attractive Composite Valuation scores across our coverage. Valuation metrics now trade near long-term averages across the group,” write Bank of America analysts in a recent note.

The $206.21 million VALQ holds 237 stocks and provides exposure to one of the hallmarks of the quality factor: sustainable and growing dividends. Dividend growth is always relevant, but that’s even more true today because even after the Federal Reserve raises interest rates, bond yields will remain low on an absolute basis. Additionally, dividend growth is a valid avenue for beating inflation.

Regarding dividend growth, VALQ allocates 27% of its combined weight to healthcare and consumer staples, which are two groups with storied histories of payout growth. The technology sector, which is an up-and-comer in terms of dividend growth, accounts for 22% of the fund’s roster. Overall, it’s fair to say that the stars are aligning for VALQ in 2022.

“We continue to favor US Quality ETFs as Quality typically outperforms the market as PMIs peak, profit growth slows, and macro volatility increases,” concludes Bank of America. “Risks ranging from higher inflation, a more hawkish Fed, and geopolitical tensions support owning high quality stocks for investors looking to deploy capital amid elevated uncertainty.”

For more news, information, and strategy, visit the Core Strategies Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X