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VictoryShares Free Cash Flow ETF (VFLO)
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Overcome Home Country Bias with this Cash-Flow-Focused ETF
Etftrends· 2025-09-26 18:22
When it comes to seeking growth-oriented, profitable companies with a penchant for generating free cash flow (FCF), investors may be missing out on opportunities if they adhere to a home country bias. However, they may be able to overcome this with the right exposure. This is where the VictoryShares International Free Cash Flow Growth ETF (GRIN) might be considered. Furthermore, Siemens is one of the top wind power companies in the world, which runs counter to the current political agenda in the U.S. The cu ...
Why Free Cash Flow Drives Superior Returns
Investment Strategy & Market Analysis - Free cash flow is considered a crucial valuation metric, favored by investors like Warren Buffett for identifying companies generating more cash than needed for operations [2] - Traditional value investing relying on price-to-book ratios is becoming less relevant as intangible assets now constitute approximately 80-85% of assets in S&P 500 companies [4] - A portfolio based on free cash flow yield outperformed a portfolio based on value factor (determined by price-to-book) between 2000 and June 2024, returning over double the amount [5] ETF Performance & Characteristics - Pacer US Cash Cows ETF (COWZ) selects 100 companies from the Russell 1000 index with the highest free cash flow yield, currently holding approximately $21 billion in assets [7] - VictoryShares Free Cash Flow ETF (VFLO) has gathered over $26 billion in assets year-to-date, totaling $44 billion, due to its consideration of both trailing and forward-looking free cash flow [9] - Invesco NASDAQ Free Cash Flow Achievers ETF (QZ) focuses on technology companies with positive free cash flow in each of the trailing 11 years and year-over-year growth [11] - Invesco product (QZ) has shown the best performance, returning about 19% over the past year, likely due to its focus on technology stocks [15] ETF Methodologies & Holdings - Pacer's COWZ ETF portfolio is heavily weighted in healthcare (20%) and energy (19%), with top holdings including Ford, Exxon Mobil, and Chevron [9] - VictoryShares' VFLO ETF portfolio is heavily weighted in consumer discretionary, with top holdings including Qualcomm, Mercar, and United Health [11] - Invesco's QZ ETF portfolio includes top holdings like Nvidia, Meta, and Broadcom, reflecting its focus on technology companies [12]
VFLO: An ETF With Attractive Valuation, An Option For Diversification
Seeking Alpha· 2025-07-10 12:49
Group 1 - The VictoryShares Free Cash Flow ETF (VFLO) offers a unique investment option for value-oriented investors, utilizing a free cash flow-weighted methodology that provides a deep value tilt [1] - This ETF distinguishes itself from traditional value funds by focusing on free cash flow, which may appeal to investors seeking more robust value strategies [1]