Core Insights - The podcast episode features a discussion on the VictoryShares Free Cash Flow Growth ETF (GFLW) and its investment strategy focusing on companies with strong free cash flow [1] Group 1: ETF Overview - The VictoryShares Free Cash Flow Growth ETF (GFLW) aims to invest in companies that demonstrate robust free cash flow generation, which is a key indicator of financial health and operational efficiency [1] - The ETF is designed to provide investors with exposure to growth-oriented companies that prioritize cash flow, potentially leading to better long-term performance [1] Group 2: Market Context - The discussion highlights the importance of free cash flow in the current market environment, where companies with strong cash flow are better positioned to weather economic uncertainties [1] - The podcast emphasizes the growing interest in ETFs that focus on specific financial metrics, such as free cash flow, as investors seek more targeted investment strategies [1]

With the S&P 500 Index pushing to new highs, many advisors are confronting a familiar challenge: how to maintain equity exposure without taking on unnecessary valuation risk. In a recent webcast, AI, Valuations, and Concentration Risks: Why Free Cash Flow Matters More Than Ever, Victory Capital client portfolio manager Michael Mack made the case for why free cash flow (FCF) has become one of the most effective tools for identifying durable, high-quality opportunities in today's market. During the discussion ...

FCF's Influence on Growth The start of the webinar highlighted a historical account on the dominance of growth and value, which tends to come in cycles. Attendees were asked how they allocated to both factors, which resulted in a relatively balanced outcome — 23% towards growth and 15% to value in today's market. "I congratulate our audience on having a healthy growth allocation because that's been beneficial over time,†Mack said upon seeing the results, mentioning that the resilience of growth over time ca ...

VettaFi's Head of Research Todd Rosenbluth discussed the VictoryShares Free Cash Flow Growth ETF (GFLW) on this week's "ETF of the Week†podcast with Chuck Jaffe of "Money Life.†For more news, information, and strategy, visit the Free Cash Flow Content Hub. RELATED TOPICS chuck jaffeetf of the weekexpert insightsGFLWPodcaststodd rosenbluthVictoryShares Earn free CE credits and discover new strategies ...

Core Insights - The S&P 500 has reached multiple record highs, leading to investor concerns about whether valuations have peaked and if it is the right time to invest new capital [1] - Victory Capital emphasizes the importance of free cash flow (FCF) as a metric to identify high-quality businesses in elevated-valuation markets [1][2] Free Cash Flow ETFs - Victory Capital has launched a suite of ETFs focused on FCF, including the flagship VictoryShares Free Cash Flow ETF (VFLO), which tracks the Victory U.S. Large Cap Free Cash Flow Index [2] - The VFLO Index targets high-quality, large-cap companies with attractive valuations and solid growth prospects [2][12] Valuation Risks - Current market conditions present valuation risks, with stock prices showing a disconnect from fundamental metrics [3] - Investors are encouraged to mitigate valuation risks by investing in stocks with high free cash flow [3] Growth Factor and FCF - Research indicates that combining growth with FCF can enhance investment effectiveness [4] - The VictoryShares Free Cash Flow Growth ETF (GFLW) provides exposure to U.S. companies with high FCF profitability and growth potential [3][4] International Opportunities - With the dollar's weakness and other macroeconomic factors, investors are increasingly looking at international equities [5] - Victory Capital has introduced the VictoryShares International Free Cash Flow ETF (IFLO) and the VictoryShares International Free Cash Flow Growth ETF (GRIN) to expand access to high-quality, high FCF companies globally [5][6] Diversification Strategy - The suite of FCF ETFs allows investors to build a diversified portfolio, including small-cap exposure through the VictoryShares Small Cap Free Cash Flow ETF (SFLO) [6] - Research supports the appeal of FCF across various regions and asset classes, promoting a diversified investment approach based on FCF [7]

Core Insights - Investors may overlook growth-oriented, profitable companies generating free cash flow (FCF) due to home country bias, but can benefit from international exposure through the VictoryShares International Free Cash Flow Growth ETF (GRIN) [1] Group 1: ETF Overview - GRIN tracks the Victory International Free Cash Flow Growth Index, targeting high-growth, international large-cap companies with potential for compounding FCF generation over time [2] - The Index uses FCF as a forward-looking measure, filtering companies based on FCF trends, FCF to return on invested capital, and growth prospects [2] Group 2: Importance of FCF - FCF is a key metric for assessing sustainable growth companies, indicating their ability to reinvest, offer dividends, or buy back stock, all contributing to shareholder value [3] - GRIN's indexed approach focuses on international companies exhibiting these characteristics, helping diversify portfolios concentrated in U.S. equities [3] Group 3: Notable Holdings - Rolls-Royce Holdings, a British aerospace and defense company, is a top holding in GRIN with a 3.88% allocation, potentially benefiting from increased military spending in the EU [4] - Siemens Energy, a German company, is experiencing record orders due to power demands from AI applications, crucial for Europe's power grid [5] - Siemens is also a leading wind power company, contrasting with the U.S. political agenda, highlighting missed opportunities for investors with a home country bias [6] - Sea Limited, based in Singapore, has seen a nearly 70% increase in value for the year as of 8/31/2025, capitalizing on e-commerce strength in Southeast Asia [7] Group 4: Diversification Strategies - For global diversification, investors can pair GRIN with other VictoryShares ETFs, such as the value-oriented VictoryShares Free Cash Flow ETF (VFLO), which focuses on high-quality, large-cap U.S. stocks [8] - The VictoryShares Free Cash Flow Growth ETF (GFLW) provides exposure to U.S. companies with high FCF profitability and growth potential [9]

Core Insights - The article emphasizes the importance of Return on Invested Capital (ROIC) and Free Cash Flow (FCF) in identifying sustainable growth investments, particularly through ETFs like the VictoryShares Free Cash Flow Growth ETF (GFLW) [1][2] Group 1: Understanding ROIC and FCF - ROIC measures a company's efficiency in generating profits from invested capital, while FCF indicates the cash available after covering operating expenses and capital expenditures [2] - High ROIC companies can grow sustainably without relying on external capital, unlike those that overextend their ROIC and depend on stock issuance or debt [4] Group 2: GFLW ETF Strategy - GFLW aims to track the Victory Free Cash Flow Growth Index, which identifies companies that can grow profitably by reinvesting capital at high rates of return [5] - The selection process begins with a universe of 1,000 companies, excluding financials and real estate, and screens for positive FCF growth over five years [6] - Companies are ranked based on FCF relative to ROIC, narrowing the selection to the top 150 businesses with sustainable growth potential [7] Group 3: Final Selection and Portfolio Management - The methodology further evaluates future growth prospects to select the top 100 companies for durable growth, with holdings weighted based on FCF size and momentum [8] - By linking ROIC and FCF, the Index provides targeted exposure to companies that generate strong cash flows and grow shareholder value over the long term [9]