Summary
- 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…
Summary
- 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.
- I rate VFLO a Hold, and would prefer to see longer-term outperformance and evidence of resilience in adverse market conditions before upgrading to Buy.
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The VictoryShares Free Cash Flow ETF (VFLO) is an ETF which offers investors exposure to high-quality U.S. large cap companies with solid growth prospects. The fund launched June 2023, has net assets of $5.4 billion, and a gross expense
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Quick Insights
VFLO is overweight technology (30.6%) and energy (22.9%), while underweighting financials and consumer staples, resulting in a more cyclical, higher-risk profile.
VFLO’s short track record and higher volatility warrant caution; sustained outperformance and resilience in down markets are needed for a potential upgrade to Buy.
VFLO’s 0.44% gross expense ratio is higher than most value ETFs, but not disqualifying given its robust index methodology and strong, albeit brief, performance.