VFLO: Strong Performance But Still A Hold For Now
VictoryShares Free Cash Flow ETF (VFLO) offers concentrated exposure to high-quality U.S. large cap value stocks, with a notable tilt toward tech and energy sectors. VFLO has outperformed major value ETFs and the S&P 500 since inception, but its track record is short and volatility is higher than peers. The fund's expense ratio of 0.44% is elevated versus competitors, but could be justified by continued outperformance.
VLFO: The Value ETF With A Cash Flow Edge
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.
VFLO: An ETF With Attractive Valuation, An Option For Diversification
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.
VFLO: The Satellite Component Of My Dream Portfolio
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.
VFLO: The Potential for an All-Weather Opportunity Within Large-Caps
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.
VFLO: Turnover At 118% (Rating Downgrade)
VFLO: Turnover At 118% (Rating Downgrade)
VFLO: Q1 2025 Rebalance Swaps 13 Stocks, Preserves Strong Quality And Value
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.
VFLO Reconstitutes to Capture Current FCF Leaders
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.
VFLO: Offers Relative Value, But Still Not A Bargain!
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.
VFLO: A More Defensive ETF To Navigate Slower S&P 500 Growth
Victoryshares Free Cash Flow ETF offers diversification with a focus on companies with strong free cash flow, showing a 48% total return since inception less than 2 years ago. VFLO's strategy emphasizes large-cap companies with high free cash flow and growth prospects, outperforming SPY so far. Despite a low starting dividend yield, VFLO's focus on free cash flow suggests potential for significant dividend growth and favorable tax treatment.
VFLO: Q4 Reconstitution Eliminates Momentum Advantage Over COWZ
Victoryshares Free Cash Flow ETF's Index reconstituted on Monday, substituting approximately 30% of the portfolio by weight. The rebalancing of existing holdings also added an extra 10-12% in turnover. This reconstitution was much more eventful than COWZ's, which also was effective Monday. Many of the additions came from the Health Care sector, which now comprises 31% of the fund. VFLO deleted many high-growth stocks like AppLovin, Vistra Energy, and Booking Holdings. The net result is 4% less earnings growth and a severely diminished price momentum advantage over COWZ.
VIDEO: ETF of the Week: VFLO
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research Todd Rosenbluth discussed the VictoryShares Free Cash Flow ETF (VFLO) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF overall.
