The Victoryshares Free Cash Flow ETF (VFLO) seeks to offer exposure to high-quality, large-cap U.S. stocks that trade at a discount and have favorable growth prospects based on gradual improvements of their reported free cash flows. In today’s high interest rate world, it becomes of prime importance for most companies to grow their own source of capital, which is, first and foremost, their positive cashflows.

VFLO was launched in June 2023 and has already impressed, outperforming not only the iShares Core S&P 500 ETF (IVV) but also a good deal of similar cash flow-focused competitors of investment ideas. VFLO seeks to provide investment results that track the performance of the Victory U.S. Large Cap Free Cash Flow Index before fees and expenses. Its total return of 10.29% looks to be the strongest among its peer ETFs. VFLO has returned 9.75% since June 23.

As to VFLO’s composition, according to the prospectus, constituents are selected from the VettaFi U.S. Equity Large/Mid-Cap 1000 Index. Financial companies and REITs are also moderately represented in its structure. As of December 6, VFLO held 50 shares classified as “common stock” and “common stock class.” Among the latter types of securities are just two names, Amdocs (DOX) and Royalty Pharma (RPRX), which together account for nearly 3% of the ETF’s portfolio.