QGRO and VALQ rebalance raises Apple, semiconductors

The American Century U.S. Quality Growth ETF (QGRO) and the U.S. Quality Value ETF (VALQ) completed their scheduled monthly index rebalances in May. The updates adjusted individual stock weightings rather than adding or removing many constituents.

QGRO’s underlying index increased Apple’s allocation to about 3.9% in May from roughly 3.52% in April. The growth index reduced the weight for Netflix to about 2.84% from roughly 3.5% and trimmed exposure to Arista Networks. QGRO also raised weights for several semiconductor suppliers and chipmakers, including Lam Research, KLA Corp. and Micron.

VALQ’s index raised Qualcomm to about 3.92% from 3.03% and Cisco to about 3.78% from 3.10%. Apple’s weight in VALQ increased to about 1.58% from 1.10%. On the value side, VALQ lowered allocations to some energy majors: Chevron declined to about 1.51% from roughly 2.13% and Exxon Mobil fell to about 1.62% from 2.22%.

To accommodate the reallocations, VALQ added a few smaller names, including Acuity, Inc. (AYI) and Marzetti Co. (MZTI). Both ETFs implemented the changes as part of their routine monthly rebalancing schedules.

Both funds apply quality-focused screening criteria when determining stock inclusion and relative weightings. The rebalances reflect regular index reconstitution and adjustments based on fundamentals and market prices rather than discretionary security selection by fund managers.

VettaFi LLC serves as the index provider for the indexes used by QGRO and VALQ and receives licensing fees. VettaFi is not the issuer, sponsor or administrator of either ETF and has no responsibility for their issuance or trading.

Over the past five years, each ETF has posted stronger returns than its respective ETF Database Category for large-cap growth and large-cap value.