Analysis

Key stats

About VictoryShares Free Cash Flow ETF

VFLO utilizes a rules-based methodology to construct its stock portfolio of profitable large US companies. Organizations are screened based on projected free cash flow yield. Companies with a negative projected free cash flow yield are excluded. Eligible securities are then ranked by their free cash flow yields and the top 75 are selected. Each of the top 75 are scored based on growth metrics, such as revenue and earnings, with the top 50 highest scoring selected for the portfolio. The rules-based approach uses a particular set of criteria, relative to free cash flow, to determine the weightings of the different components of the portfolio. Higher weighting is given to organizations perceived to have a strong combination of high total free cash flow and free cash flow yield. For a more balanced representation, individual companies are capped at 4%, with a maximum allocation of 45% to those belonging to one sector. The index is rebalanced and reconstituted quarterly.