The Alpha Architect U.S. Quantitative Value ETF (QVAL) is an exchange-traded fund designed to invest in U.S. companies that appear undervalued based on quantitative investment criteria. The ETF is managed by Alpha Architect and trades under the ticker QVAL on the NYSE Arca.

Classified as a factor-based equity ETF, the fund follows a systematic value-investing approach. Its strategy seeks to identify companies trading at attractive valuations relative to their financial fundamentals through the use of quantitative screening and portfolio-construction models.

The ETF employs an actively managed, rules-based methodology focused on companies that exhibit value characteristics, emphasizing measures related to operational profitability and market valuation.

Diversification and sector exposure

QVAL provides exposure primarily associated with:

• Value stocks.

• U.S. small- and mid-cap companies.

• Quantitative investing.

• Factor-based strategies.

• Industrials.

• Consumer discretionary.

• Financial services.

• Energy.

The portfolio is built through a systematic selection process that combines attractive valuations with indicators of business quality. As a result, sector allocations may shift over time depending on where value opportunities are identified.

The ETF’s performance is closely tied to the behavior of the value factor within the U.S. equity market. During certain market cycles, lower-valuation companies may perform differently from growth-oriented stocks.

Structure and costs

QVAL shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

Although the strategy relies on quantitative models, the fund does not seek to track a traditional index. Portfolio selection and rebalancing follow a proprietary methodology developed by Alpha Architect.

The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed to shareholders according to the fund’s distribution policy.

History and evolution of the ETF

The Alpha Architect U.S. Quantitative Value ETF was launched in 2014 with the objective of translating academic research on value investing into a systematic ETF-based investment strategy.

Since inception, the fund has invested in U.S. companies selected through quantitative screens that combine traditional value-investing principles with evidence-based financial research.

In recent years, the ETF has navigated multiple market environments, including periods dominated by growth stocks and phases marked by renewed interest in value-oriented strategies, trends that continue to shape its investment approach.

Additional Information

Alpha Architect U.S. Quantitative Value ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $756.23 million.

Over the past 12 months, Alpha Architect U.S. Quantitative Value ETF recorded a return of 40.56%, with its price trading between $45.57 and $64.92 during the same period.

The ETF is traded under the ticker QVAL.