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VictoryShares Free Cash Flow ETF

VFLO tracks an index composed of the largest U.S. companies based on profit that are perceived to have strong free cash flow yields and high growth metrics.

Two key drivers behind a company's value are important for investors to understand. The first driver of value is the company's free cash flow (FCF) yield.

FCF and Growth: Examining the Key Drivers of a Company's Value

Avantis US Large Cap Value ETF

Pacer US Cash Cows 100 ETF

iShares Russell 1000 Value ETF

iShares Russell 2000 Value ETF

American Century U.S. Quality Growth ETF

Hartford Multifactor US Equity ETF

American Century STOXX U.S. Quality Value ETF

Vanguard Value ETF

Vanguard Growth ETF

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides to debate controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Bull vs Bear: Is It Time for Value ETFs to Rotate Into Favor?

VictoryShares Small Cap Free Cash Flow ETF

VictoryShares has two ETFs in its suite offering exposure to companies with attractive free cash flow yields. The VictoryShares Free Cash Flow ETF (VFLO) and the VictoryShares Small Cap Free Cash Flow ETF (SFLO) are constructed using the same innovative methodology, but each provides nuanced exposure to the U.S. market.

VFLO or SFLO: Which Free Cash Flow ETF Is Right for You?

Free cash flow is a useful metric for evaluating companies and investment opportunities. Free cash flow is the remaining cash a company has after accounting for operating expenses and capital expenditures.

What's the Right Way to Assess Free Cash Flow?

VictoryShares' small-cap free cash flow ETF has quickly gained traction with investors. SFLO serves as a potential solution for investors looking to enhance their small-cap exposure and limit the volatility associated with the space.

VictoryShares' Small-Cap Free Cash Flow ETF Enhances Exposure

For the past few years, the energy sector has had high capital expenditures (capex). According to S&P Global, the global energy sector capex was more than $1.5 trillion in 2021[1].

How Energy Is Ready for High Free Cash Flow Yields

VFLO is Victory Capital's answer to COWZ, the most popular free-cash-flow-yield ETF on the market. Since my August review, VFLO has outperformed by 3%. VFLO's use of forward-looking metrics is important. This approach considers new information analysts have about current markets, and although estimates can be flawed, I believe it's a net positive. After last month's reconstitution, VFLO offers nearly the same estimated EBITDA growth as the Russell 1000 but at a fraction of the cost. On paper, VFLO looks great.

VFLO: My Balanced Take On Victory Capital's Free Cash Flow Yield ETF

VictoryShares believes that healthcare companies have the potential to generate high future free cash flow (FCF) yields. From the information available, while concerns are out there, having the right fundamentals in place is ultimately advantageous.

Why Fundamentals for Healthcare Are Strong

When seeking companies that generate high free cash flow (FCF) yields, sectors matter. Take technology, for example.

How the Technology Sector Can Generate High Free Cash Flow Yields

GraniteShares HIPS US High Income ETF

ALPS Medical Breakthroughs ETF

ALPS Sector Dividend Dogs ETF

Many of us were prepping for year-end (or on vacation in Belize, in my case) in December. However, index providers were hard at work to ensure certain ETFs fully reflected the investment criteria advisors have come to expect.

What's Now Inside Some Fundamentally Focused ETFs

While it is possible to argue that free cash flow (FCF) is a better metric to gauge a company's growth potential than market capitalization, it's important to note that not all high FCF yields are the same.

Avoiding Low Growth Prospects: A Case Study

Companies often have two forms of assets: tangible and intangible. Tangible assets exist as the assets found on company balance sheets like property, equipment, or inventory.

Unveiling the Hidden Wealth of Companies Through Intangible Assets

Cabana Target Leading Sector Aggressive ETF

Cabana Target Leading Sector Conservative ETF

Cabana Target Leading Sector Moderate ETF

iShares U.S. Fixed Income Balanced Risk Factor ETF

iShares High Yield Bond Factor ETF

iShares Investment Grade Bond Factor ETF

iShares North American Tech-Multimedia Networking ETF

Invesco Raymond James SB-1 Equity ETF

SPDR S&P 500 ETF Trust

Cabana Target Drawdown 10 ETF

Cabana Target Drawdown 13 ETF

iShares USD Bond Factor ETF

Alpha Blue Capital US Small-Mid Cap Dynamic ETF

Texas Capital Texas Small Cap Equity Index ETF

FT Cboe Vest US Equity Moderate Buffer ETF-Decemebr

iShares U.S. Digital Infrastructure and Real Estate ETF

FT Cboe Vest US Equity Buffer & Premium Income ETF - December

The last full week of the year was a busy one, with 18 new ETFs launching. Among the rolled-out funds were offerings from Texas Capital, PlanRock, PGIM, John Hancock, SP Funds, Bancreek, KB Asset Management, ProShares, and WisdomTree.

This Week in ETFs: VictoryShares Adds Small-Cap FCF Fund

Free cash flow (FCF) represents the cash a company can produce after removing the purchase of assets such as property, equipment, and other major investments from its operating cash flow. FCF measures a company's ability to produce cash that can be distributed in a discretionary way.

The Significance of Free Cash Flow in Company Valuations

Free cash flow (FCF) is the cash remaining after a company has paid its expenses, taxes, interest, and long-term investments. It can be used to invest in growing the business, buying back stock, paying dividends, and paying down debt.

Why Free Cash Flow May Be the True Measure of a Company's Value

If an investor had to choose between two companies with the same valuation, it would make sense to select the one that's growing faster. At least that's the philosophy behind the VictoryShares Free Cash Flow ETF (VFLO).

Combine Strong Free Cash Flows & Strong Growth With VFLO

Many investors and advisors peruse companies' earnings statements to see if they're on track to offer growth. However, traditional metrics like earnings or revenue growth often fail to identify which stocks have the most growth potential.

Beyond Earnings: Navigating Future Growth with Expected Free Cash Flow Yield

VFLO has a 50-strong portfolio of stocks with solid FCF yields and promising growth prospects. Debuted in June 2023, VFLO has already made a solid impression, outperforming the market and a few peers. I believe FCF-focused investors should consider VFLO at this point as it is offering a 7.8% FCF/EV, high single-digit forward EBITDA and revenue growth rates, and robust quality.

Why Should FCF-Focused Investors Consider VFLO?

Free cash flow factor underperformed in 2023, though the factor has rebounded over recent months as the stock market rally broadens out. The Victoryshares Free Cash Flow ETF offers a promising construct and impressive performance so far its in life, and I highlight why it has produced such strong returns. VFLO has a value tilt and low P/E ratio, and the ETF has outperformed the S&P 500 lately, though I don't see its growth screening as having much influence.

VFLO: Free Cash Flow Focus, More Value Than Growth, An Alternative To COWZ

Historically, value stocks have tended to outperform growth companies for nearly a century, based on Fama/French Research.¹ However, value investing has a few challenges over the shorter time horizon.

Considering Value as Part of the Bigger Picture

Over the years, many companies have transitioned from asset-heavy to asset-light business models, where intangible assets drive most of their growth. Tangible assets are assets that appear on a company's balance sheet.

See Tangible Results Targeting Intangible Assets

Traditional value metrics like book value convey how much capital a company has invested in the business. But the sign of a truly profitable business is that it generates more free cash flow (FCF) than it needs.

Why Truly Profitable Companies Generate Excessive Free Cash Flow

Dividend strategies have been popular for years. Arguably, the source of those sustainable dividend payments is strong free cash flow (FCF).

How Dividend Growth & Free Cash Flow Go Hand in Hand

Warren Buffett once wrote: “Growth is always a component in the calculation of value.”[1] This makes a lot of sense.

Avoid Value Traps With VFLO's Growth Filter

Free cash flow (FCF) represents the cash a company generates after accounting for cash payments to support operations and maintain its capital assets. It allows companies to reinvest cash, pay dividends, or repay debts.

News for VictoryShares Free Cash Flow ETF ETF (VFLO)