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Curious About Value? How a Quality Value ETF Approach Can Help

BY | ETF Database
09/14/2026 | 26 VIEWS
It’s no secret that valuations are quite high, but what do investors and advisors make of that? On the one hand, there’s plenty of equities still out there in these early stages of the AI revolution. However, markets are facing headwinds. It may be worth adding diversification, with value offering opportunities as markets broaden. A quality value ETF like the American Century U.S. Quality Value ETF (VALQ C+) and its quality view can get that much more out of value stocks.Key Takeaways: As markets begin to broaden, and concentraiton risk looms, now may be time for a quality value ETF approach. VALQ has returned 9.2% YTD with its approach, and has outperformed its ETF Database category average over five years. The fund’s quality view can help it find the best undervalued opportunities in U.S. large caps. VALQ charges a 29 basis point (bps) fee to track the American Century U.S. Quality Value Index. The strategy aims to invest in undervalued large caps based on fundamentals, screening for metrics like quality, value, and income. Specifically, the quality value ETF aims to balance value stocks and stocks displaying sustainable income. By combining a quality view with an emphasis on undervalued stocks, the strategy aims to find equities that can return well, not just offer diversification away from frothy growth. Add in that income side of the equation, and the fund becomes a strong consideration. VALQ has returned 9.2% YTD according to ETF Database data with that approach. The fund has also beaten its ETF Database Large Cap Value Equities category average over the last five years. Per ETF Database data, the ETF has returned 9.3% over the last five years, compared to 6.89% for the category average. The fund provides diversification by avoiding those megacap, AI hyperscaler names and emphasizing other segments. VALQ holds major health care names like Merck & Co (MRK), which has returned 38.5% YTD. Names like those offer plenty of upside, clearly, without adding too much more tech exposure. See more: The Active ETF Gap: What Sets the Top Active ETFs Apart? Together, names like those in the quality value ETF could make it a strong option to watch. For those looking at ways to diversify and broaden their portfolios, VALQ could be one to watch. For more news, information, and analysis, visit the Core Strategies Content Hub. VettaFi LLC (“VettaFi”) is the index provider for VALQ, for which it receives an index licensing fee. However, VALQ is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of VALQ.

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