Get Exposure to Top-Shelf Small-Cap Prospects With SFLO

Core Viewpoint - The current market environment favors large-cap stocks, but the VictoryShares Small Cap Free Cash Flow ETF (SFLO) highlights the potential of small-cap investments, particularly in companies like Symbotic Inc. [1] Company Overview - Symbotic Inc. is a leader in AI-enabled robotics technology for the consumer goods supply chain and is positioned for significant growth [2]. - As of December 11, 2025, Symbotic is included in SFLO, which tracks a focused index that emphasizes companies with strong free cash flow [1][2]. Financial Metrics - SFLO aims to track the Victory U.S. Small Cap Free Cash Flow Index, which screens for companies with robust free cash flow (FCF) [3]. - FCF is defined as the remaining funds after operating cash flow minus capital expenditures, serving as a key indicator of financial health [4]. - Symbotic has a high expected FCF yield of 13.64%, significantly outperforming the Russell 2000 Value Index's yield of 3.56% [5]. - The growth rate for Symbotic is 37.32%, compared to 5.62% for the Russell 2000 Value Index, indicating strong growth potential [5]. Investment Strategy - SFLO's index methodology focuses on forward-looking FCF rather than trailing cash flows, allowing it to target companies with high FCF yield and growth potential [5]. - Companies like Symbotic, which focus on innovation and disruptive technology, are essential for identifying investment opportunities in the small-cap sector [6]. Index Characteristics - The Victory U.S. Small Cap Free Cash Flow Index selects high-quality companies based on profitability and strong free cash flow yield, rebalancing quarterly [14]. - Expected FCF is calculated as the average of trailing 12-month FCF and next 12-month forward FCF, divided by enterprise value [14].