Oil tankers benefitted from heightened geopolitical turmoil and tension in the first half of the year. The VictoryShares Small Cap Free Cash Flow ETF (SFLO) currently carries several oil tanker companies after the ETF's second-quarter rebalance in June 2024.
Investors looking ahead to eventual interest rate cuts or simply wanting to diversify their large-cap equity portfolios may want to consider small caps in the second half of the year.
Signs of economic weakening at the end of the second quarter raised investor concerns about economic performance for the remainder of 2024. Investors looking to hedge for potential slowing may consider the VictoryShares Free Cash Flow ETFs.
SFLO is a Buffett-style ETF focused on small-cap value stocks with strong free cash flow yields and growth potential. The ETF targets companies with 12% to 13% consensus growth rates, trades at 5X cash-adjusted earnings, and offers almost 10% FCF yields. SFLO aims to provide potentially explosive upside returns by investing in undervalued small-cap companies with strong growth prospects.
Markets remain highly responsive to economic data as concerns around Fed policy and high interest rates dominate the second quarter so far.