GFLW ETF blends growth, profitability and momentum

VictoryShares’ Free Cash Flow Growth ETF (GFLW) follows the Victory Free Cash Flow Growth Index and holds 100 U.S. large-cap stocks screened for positive free cash flow and free cash flow return on invested capital (FCF ROIC).

The index starts with the VettaFi 1000 US Large Cap Index. It narrows the universe to 400 names by requiring positive free cash flow growth over the past five years. From those 400, it ranks companies by FCF ROIC and selects the top 150. A growth overlay then removes the slowest-growing companies to produce a final portfolio of 100 stocks.

The index uses forward 12-month free cash flow estimates rather than only trailing figures. It excludes companies with negative free cash flow and is reconstituted and rebalanced quarterly.

Factor-profile data provided by the index creator show a growth score of 0.58 for the index, compared with 0.35 for the Russell 1000 Growth Index and 0.19 for the NASDAQ-100. Profitability scores measure 0.20, higher than the MSCI USA Sector Neutral Quality Index, while momentum measures 0.34, above the NASDAQ-100.

VettaFi LLC is the index provider and receives an index licensing fee. VettaFi is not the issuer, sponsor or seller of GFLW and has no obligation or liability in connection with the ETF’s issuance, administration, marketing or trading.

The ETF’s construction centers on free cash flow and FCF ROIC as selection criteria. Portfolio composition and timing of changes are determined by the index rules and the fund’s quarterly reconstitution and rebalancing schedule.