VictoryShares Free Cash Flow ETF (VFLO)

The VictoryShares Free Cash Flow ETF (VFLO) employs a rules-based, indexed methodology that seeks to identify potential profit opportunities for investors regardless of overall market conditions.

The VictoryShares Free Cash Flow ETF (VFLO) offers a distinctive approach by investing in companies with strong free cash flow (FCF), which is a key indicator of financial health and efficiency. To help investors better understand VFLO's Index methodology, today its portfolio can be grouped into three thematic categories (energy, cyclicals and healthcare).

VFLO offers a distinct value approach by weighting holdings on free cash flow, resulting in heavy exposure to healthcare and energy sectors. The fund trades at a steep valuation discount (P/E 12.5x) versus the Russell 1000, yet maintains comparable growth rates in key sectors. VFLO outperformed most value peers in 2024 but lags broader indexes and carries higher volatility, lacking the defensive tilt of traditional value funds.

Airline stocks screened into the VictoryShares Free Cash Flow ETF (VFLO) during the ETF's March 2025 rebalance/reconstitution and remain following the most recent one in June 2025. VFLO's indexed approach seeks to provide exposure to high quality companies, trading at a discount with favorable growth prospects.

VictoryShares Free Cash Flow ETF is a compelling ETF for GARP investors, blending growth and value by focusing on free cash flow and reasonable valuations. Not to be confused with a value ETF (like VTV) or a quality ETF (like SPHQ). The screening involves selecting stocks with growing FCF and high ROE, the foundation for a strong compounded earnings growth rate on multiples.

2025 brings with it a host of new challenges for equities, coupled with a large dose of uncertainty. For investors looking to diversify away from growth-heavy strategies, the VictoryShares Free Cash Flow ETF (VFLO) is worth consideration.

On this week's episode of ETF Prime, Kirsten Chang, senior industry analyst at VettaFi, joins host Nate Geraci to highlight key takeaways from VettaFi's Midyear Market Outlook Symposium. Later, Lance Humphrey from Victory Capital discusses the VictoryShares ETF lineup and offers insights into the current market environment.

On this week's episode of ETF Prime, VettaFi's Head of Research Todd Rosenbluth discusses top ETF stories shaping the first half of 2025 with host Nate Geraci. Later, Astoria's Bruce Lavine steps through 351 Exchanges, explaining what they are and why they matter.

Every year, a large number of ETFs launch in December, aiming to get the benefit of a fresh calendar year of performance. Six months later, some of them have done so and garnered investor interest.

VFLO: Turnover At 118% (Rating Downgrade)

VFLO's Index just underwent its quarterly reconstitution, substituting 13 stocks and increasing its exposure to Technology stocks by 5%. The main offset was a decrease in Health Care by 6%. Despite the turnover, VFLO's quality and value features remain excellent, and although it's less than two years old, it's building a reputation as a superior alternative to COWZ. One factor I'm watching is momentum. Despite not being part of the screening process, VFLO has historically selected high-momentum stocks, but that's no longer the case today.

A week has passed since the Exchange conference kicked off. More than 1,500 people joined VettaFi on site in Las Vegas for education, networking and more.

The VictoryShares Free Cash Flow ETF (VFLO) was met with interesting changes to its portfolio following its reconstitution at the end of the fourth quarter. VFLO provides exposure to quality companies with high free cash flow (FCF) yields currently trading at a discount.

Current valuations of popular US stocks are alarmingly high, reminiscent of the dot-com bubble, and even conservative stocks like Coca-Cola and Proctor & Gamble seem overpriced. Passive investing may be a bubble; historical 10% returns on indexes are unlikely to continue due to high current valuations and potential market volatility. Investors should consider lightening their exposure to the frothy parts of the markets, holding cash, or seeking high-dividend, low-earnings multiple stocks, possibly in foreign markets, to mitigate risks.

ETF issuance is profitable for Wall Street, leading to an overwhelming number of ETFs that may not serve investors' best interests. Avoid ETFs with less than $100 million in assets due to inadequate liquidity and higher trading costs. Invest in ETFs with total annual costs below 0.49% to ensure low fees; high fees don't guarantee quality.

VictoryShares Small Cap Free Cash Flow ETF (SFLO) has reached a notable milestone as it celebrates its one-year birthday. SFLO launched on December 21, 2023, and has garnered $167 million in assets under management as of December 16, 2024.