VALQ vs VONV

VALQBAmerican Century STOXX U.S. Quality Value ETF

VONVAVanguard Russell 1000 Value ETF

In short

VALQ Cheap stocks are sometimes cheap for a reason. VALQ's index screens U.S. large and mid caps for quality and income alongside valuation, so the bargain bin gets filtered before anything gets bought. Launched 2018, 0.29% a year.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

VALQ The fund seeks to capture the performance of U.S. large- and mid-capitalization companies with attractive quality, valuation, and income fundamentals.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• VALQ A three-way test: quality, valuation and income fundamentals across U.S. large- and mid-cap companies. Not a pure cheapness sweep.americancentury.com
• 0.29% a year undercuts the typical U.S. multifactor fund, and the portfolio spreads across roughly 220 stocks rather than a narrow bet.
• Income is written into the screen itself, not bolted on afterward, and the fund distributes quarterly.
• Rules-based, not manager hunch: it follows the American Century U.S. Quality Value Index and lands in the upper half of a crowded multifactor peer group.americancentury.com

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• VALQ Thinly traded next to the category's giants, so bid-ask spreads can run wider and larger orders can move the price.
• Broad value peers like VONV and VYM charge a fraction of this fee; the extra cost is what buys the quality and income screens.
• Those same filters make it behave differently from a plain value index, in either direction, over any given stretch.

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full VALQ profile⁠

Full VONV profile⁠