The VettaFi US Enhanced Value Index completed its semiannual rebalance on June 18, with 42 stocks entering the index and 72 exiting. The changes reflect the latest refresh of the index’s value screens, which target large- and mid-cap U.S. companies with attractive valuation characteristics.
The rebalance offers a snapshot of where the index is finding value opportunities today, with new additions replacing companies that no longer met the methodology’s selection criteria.
Key Takeaways
- The VettaFi US Enhanced Value Index (VEVAL) completed its semi-annual rebalance on June 18, 2026.
- VEVAL added 42 stocks and removed 72 constituents.
- Technology and healthcare increased their portfolio weights, while media and communications and consumer discretionary declined.
Technology and Healthcare Gain Weight
Technology and healthcare recorded the largest increases in index weight following the rebalance.
Technology benefited primarily from the addition of NVIDIA, which entered the index with a 7.21% weight, along with ServiceNow Inc. at 0.24%. Meanwhile, Eli Lilly & Co. joined the index at a 1.13% weight, contributing to healthcare’s increased allocation.
As with every rebalance, the changes reflect shifts in company valuations and fundamentals rather than discretionary investment decisions. Stocks are added or removed based on how they score under the index’s rules-based methodology.
| Rank | Sector | Approximate Weight* |
|---|---|---|
| 1 | Technology | ~38.3% |
| 2 | Healthcare | ~14.2% |
| 3 | Financial Services | ~12.5% |
| 4 | Consumer Services (Consumer Discretionary) | ~5.3% |
| 5 | Industrial Goods | ~6.4% |
Alphabet and Amazon Exit the Index
The steepest exposure drops occurred in the media and communications and consumer discretionary sectors.
Media and communications lost weight following the removal of Alphabet, which previously represented 3.20% of the index. Consumer discretionary exposure also declined after Amazon was deleted from the portfolio.
Amazon was added in the December 2025 rebalance before being removed just one cycle later in June 2026. The same pattern of short-duration exposure is visible in names such as GE Aerospace which was added in late 2025 but fully removed in the most recent rebalance.
Rotation Within Technology
The rebalance also highlighted shifts within the technology sector itself. While NVIDIA was added, several semiconductor-related companies — including Applied Materials Inc., Lam Research Corp., and Western Digital Corp. — were removed from the index.
The semiconductor exposure also evolved significantly between cycles. While late 2025 saw the removal of AMD and Intel, the June 2026 rebalance went further, adding NVIDIA at a large weight while simultaneously removing a broader group of semiconductor equipment and storage names. The result is a noticeably different expression of the sector between the two periods, driven by the index’s ongoing reassessment of valuation signals rather than any static sector view.
What it means for CVLU
Rather than aiming to keep holdings stable or fixed to a traditional idea of value, the process is designed to respond to changing market conditions. That helps VEVAL — and, in turn, ETFs that track it such as the CI U.S. Enhanced Value Index Fund — adjust as relative valuations shift across the market. For investors, the rebalance is a reminder that value strategies are not static. Holdings can change meaningfully from one rebalance to the next as different stocks move into or out of the value category under the index rules.
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