VALQ Overview

Overview of VALQ ETF: The American Century U.S. Quality Value ETF (VALQ), launched in 2018, focuses on large and mid-cap companies that are undervalued or have sustainable income, with a current asset base of over $238 million and an expense ratio of 0.29%.

Performance and Comparison: VALQ has gained approximately 31.88% over the past year, with significant allocations in Information Technology, while investors may also consider other ETFs like Capital Group Dividend Value ETF and iShares Core S&P U.S. Value ETF for different strategies and costs.

Debut of American Century U.S. Quality Value ETF (VALQ):

• VALQ is a smart beta ETF that provides exposure to the Style Box - All Cap Value category.

Smart Beta ETFs:

• Offer an alternative to market cap weighted indexes for investors who believe in superior stock selection.
• Utilize specific fundamental characteristics or combinations to select stocks with better risk-return performance.

Fund Sponsor & Index:

• Sponsored by American Century Investments, VALQ seeks to match the AMERICAN CENTURY U.S. QUALITY VALUE INDX.
• Focuses on undervalued or sustainable income large and mid-cap companies.

Cost, Sector Exposure, and Top Holdings:

• VALQ has an expense ratio of 0.29% and a dividend yield of 1.57%.
• Heaviest sector allocation is Information Technology at 22.90%, with top holdings including TEL, WMT, and QCOM.

Performance, Risk, and Alternatives:

• VALQ has returned 7.52% year-to-date and 17.43% in the last year.
• Offers diversification with 232 holdings, a beta of 0.95, and standard deviation of 14.90%.
• Investors can consider alternatives like DFAT and IUSV for similar exposure in the market segment.

Illinois Tool Works Inc. Financials:

• Reported lower revenue in the first quarter of FY24 compared to consensus.
• Decline in revenue attributed to a decrease in organic growth and foreign currency translation impact.
• Beat consensus on EPS with GAAP EPS at $2.73 and Adjusted EPS at $2.44.
• Operating income increased by 16% year-over-year, with an operating margin of 28.4%.
• Provided FY24 guidance with raised EPS forecast and increased operating margin outlook.

Outlook and Comments by CEO:

• Expect positive organic growth for the rest of the year due to current demand levels and favorable comparisons.
• Revenue growth projected at 2% to 4% with organic growth at 1% to 3% based on demand and exchange rates.

Investor Information:

• Investors can access ITW stock through VictoryShares THB Mid Cap ETF (BEEZ) and American Century U.S. Quality Value ETF (VALQ).

Stock Performance:

• ITW shares were down 1.5% at $245.45 as per the latest check on Tuesday.