Royalty Pharma

Oscar Health

Jazz Pharmaceuticals

Scorpio Tankers

Civitas Resources

International Seaways

CONSOL Energy

Dillard's

Clear Secure

Chord Energy Corp

VictoryShares Small Cap Free Cash Flow ETF

SFLO tracks an index composed of 200 small-cap US companies based on profit that are perceived to have strong free cash flow yields and high growth metrics.

SFLO implements a FCF-centered strategy in the small-cap equity universe. The result is a fairly inexpensive SMID mix with large exposure to cyclicals (i.e., energy and industrials), heavy in quality. The main problem though is its soft growth characteristics, which, despite being much stronger than those of CALF, are still unimpressive in today's market.

SFLO: High-Quality ETF That Is Underachieving In This Bull Market

VictoryShares Free Cash Flow ETF

Advisors and investors turn to quality stocks for various reasons across market cycles. Whether hedging for risk, enhancing portfolio diversification or seeking reliable income, quality stocks align with a range of investment strategies.

When Seeking Quality, Don't Miss These Two ETFs

The Fed cut interest rates in mid-September, potentially creating an opportunity for a small-cap rally. Higher rates have been a headwind for small caps, which tend to be more affected by interest rate movement than large caps1.

Don't Be Late to the Small-Cap Rally

Capacity constraints can be a significant problem for small-cap ETFs, particularly those screening for free cash flow (FCF), which further reduces the number of eligible securities. Small-cap ETFs can become capacity-constrained when they get too large.

Does Your Small-Cap FCF ETF Solve for Capacity Constraints?

In an environment of ongoing market volatility and potential risk, investors may look to enhance their portfolio's diversification. The free cash flow (FCF) ETFs from VictoryShares offer potential diversified equity exposure compared to their respective benchmarks.

Consider These Two ETFs When Seeking Equity Diversification

Value investing remains a core component within many investors' portfolios. However, traditional value indexes may miss opportunities within the category because of how they define and screen for value.

What Traditional Value Indexes May Miss When Screening Stocks

Quality has increasingly played an important role in portfolios in recent years.

The Importance of Quality in Small-Cap Exposure

ARK Innovation ETF

Peabody Energy

Pacer US Small Cap Cash Cows 100 ETF

Vaneck CLO ETF

AB Disruptors ETF

Janus Henderson AAA CLO ETF

NVIDIA

SPDR Portfolio S&P 500 ETF

SPDR S&P 500 ETF Trust

Tesla

The ETF boom means there's now roughly 4,000 funds to choose from. How do you know if you own the best ones?

Invest In These ETFs — Not Those

The VictoryShares Small Cap Free Cash Flow ETF (SFLO) has seen interesting changes to its top holdings and sector weights. SFLO offers exposure to high-quality small-cap companies trading at a discount with favorable growth prospects and high expected free cash flow (FCF) yields.

How SFLO Has Changed to Capture the Current Opportunity Set

Avantis U.S. Small Cap Value ETF

Vanguard Long-Term Bond ETF

Franklin Responsibly Sourced Gold ETF

Fidelity Real Estate Investment ETF

SPDR Gold Trust

iShares 20+ Year Treasury Bond ETF

Real Estate Select Sector SPDR Fund

The Federal Reserve cut interest rates by 0.50% today as it continues to aim for a soft-landing scenario. The interest rate cut is the first in the Fed's historic fight against inflation that's lasted over two years.

Fed Takes Aggressive Rate Cut Approach: Now What?

VictoryShares Small Cap Free Cash Flow ETF (SFLO) targets profitable small-cap companies with strong free cash flows, offering attractive valuations compared to the Russell 2000 index. SFLO's methodology excludes financials and REITs, focusing on companies with high free cash flow yields and positive growth outlooks, rebalanced quarterly. SFLO's sector allocation is heavily weighted towards energy and consumer discretionary, with low price/FCF and price/earnings ratios, providing a valuation cushion.

SFLO: Free Cash Flow Focus Driving Low Multiples For This Small-Cap ETF

Investors in small caps should not overlook free cash flow (FCF) as a valuable metric for evaluating investment opportunities. FCF is the remaining cash a company has after accounting for operating expenses and capital expenditures.

Why It's Important to Evaluate Small Caps by Free Cash Flow

Blackrock Flexible Income ETF

Capital Group Dividend Value ETF

SPDR Gold MiniShares Trust

iShares 10+ Year Investment Grade Corporate Bond ETF

iShares Core S&P Small Cap ETF

VanEck Merk Gold Trust

Global X U.S. Infrastructure Development ETF

Global X U.S. Preferred ETF

VanEck Preferred Securities ex Financials ETF

Invesco QQQ

Aberdeen Standard Gold ETF Trust

SPDR Portfolio Long Term Treasury ETF

 SPDR Blackstone Senior Loan ETF

Vanguard Small-Cap ETF

Vanguard Long-Term Corporate Bond ETF

Vanguard Real Estate ETF

Vanguard Russell 2000 ETF

Consumer Staples Select Sector SPDR Fund

Utilities Select Sector SPDR Fund

Invesco S&P SmallCap Momentum ETF

The first cut is the deepest — so they say. As with all complicated relationships, this mantra may certainly ring true for the Federal Reserve and the markets — at least from a psychological standpoint.

Positioning Ahead of the Fed: ETFs for a Lower Rate Era

Oil tankers benefitted from heightened geopolitical turmoil and tension in the first half of the year. The VictoryShares Small Cap Free Cash Flow ETF (SFLO) currently carries several oil tanker companies after the ETF's second-quarter rebalance in June 2024.

Oil Tankers in Focus: Under the Hood of SFLO

Investors looking ahead to eventual interest rate cuts or simply wanting to diversify their large-cap equity portfolios may want to consider small caps in the second half of the year.

Worried About Small-Cap Liquidity? Consider SFLO

Signs of economic weakening at the end of the second quarter raised investor concerns about economic performance for the remainder of 2024. Investors looking to hedge for potential slowing may consider the VictoryShares Free Cash Flow ETFs.

Enhance Your Quality Exposures With These Two ETFs

Advisors and investors looking for quality companies often use free cash flow (FCF) as a measure of financial health. However, most strategies only capture half the picture, creating a short-to-intermediate term snapshot.

Look for Long-Term Opportunity With Free Cash Flow Yield

Dimensional US Small Cap ETF

Dimensional US Small Cap Value ETF

iShares Russell 1000 ETF

iShares Russell 2000 ETF

iShares Russell 2000 Value ETF

iShares Russell 2000 Growth ETF

O'Shares US Small-Cap Quality Dividend ETF

Global X Russell 2000 Covered Call & Growth ETF

SPDR Portfolio Small Cap ETF

It's midsummer, and U.S. small-caps have finally showed up in a big way. You could say it's been a long time coming.

Finding the Right Small-Cap ETF for Different Outcomes

Pacer US Cash Cows 100 ETF

iShares S&P Small-Cap 600 Value ETF

iShares Russell 1000 Value ETF

While large-cap growth stocks continue to lead the market, advisors are looking for alternatives such as small-cap value funds. One of the more popular ETFs this year has been the Pacer US Small Cap Cash Cows 100 ETF (CALF).

Under-the-Radar Small-Cap Cash Flow ETF

SFLO is a Buffett-style ETF focused on small-cap value stocks with strong free cash flow yields and growth potential. The ETF targets companies with 12% to 13% consensus growth rates, trades at 5X cash-adjusted earnings, and offers almost 10% FCF yields. SFLO aims to provide potentially explosive upside returns by investing in undervalued small-cap companies with strong growth prospects.

Why SFLO Could Be The Ultimate Dividend ETF Bargain For Today's Market

The U.S. economy continues to prove resilient in 2024, but a potential rise in risk factors in the second quarter weighs heavily on investors' minds. For those looking to position defensively within equities while avoiding equity growth FOMO (fear of missing out), the VictoryShares free cash flow ETFs are worth consideration.

Positioning Defensively Within Equities

Markets remain highly responsive to economic data as concerns around Fed policy and high interest rates dominate the second quarter so far.

Why Free Cash Flow Could Be the Antidote to High Rates

Investors may be looking within the small- and mid-cap space for the value-tilt many of these companies offer. Add in their growth potential and small-cap companies are worth consideration.

SFLO Rebalance Boosts Free Cash Flow Yield

Utilizing factors as part of an investing strategy can potentially enhance diversification, improve returns, and manage risk or volatility. Common style factors include growth, value, quality, momentum, and size.

How Free Cash Flow ETFs Introduce Factors to Portfolios

A significant portion of small caps are unprofitable, making it essential for investors to fully understand the composition of their small-cap exposure. 40% of small caps in the Russell 2000 Index are unprofitable, according to an article from Kiplinger's published earlier this year, and very few small-cap companies generate meaningful free cash flow.

News for VictoryShares Small Cap Free Cash Flow ETF ETF (SFLO)