VictoryShares Free Cash Flow ETF

VFLO

Market cap $6.16B

On October 9, 2025, Lifestyle Asset Management, Inc. disclosed a complete exit from VictoryShares Free Cash Flow ETF(VFLO), selling all shares in a trade estimated at approximately $7 million during Q3.

TMX VettaFi is rapidly establishing itself as a key index partner, leveraging a strategy of product expansion and strategic acquisitions.

The healthcare sector has certainly been fraught with a myriad of challenges this year, but weakness in the sector could have investors looking for value-oriented plays. That, in turn, could positively affect value-focused funds like the VictoryShares Free Cash Flow ETF (VFLO).

VictoryShares Free Cash Flow ETF (VFLO) earns a buy rating for its focus on high free cash flow large-cap companies, targeting outperformance over traditional value ETFs. VFLO's concentrated portfolio emphasizes Health Care and Energy, offering defensive qualities and growth potential, but introduces higher sector and holding risk than broad value funds like IWD. Despite a higher expense ratio and lower dividend yield, VFLO has delivered superior returns since inception, attracting strong investor inflows and demonstrating robust liquidity.

Financial advisors continuously search for investment strategies that align with their clients' diverse goals. While the S&P 500 remains a cornerstone for broad U.S. large-cap exposure, understanding nuanced approaches within this space is crucial.

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.