VFLO and PVAL offer a cash-flow-focused value sleeve

Pairing VictoryShares’ VFLO and Putnam’s PVAL creates a value allocation centered on free cash flow (FCF), combining a rules-based, forward-looking index filter with an active, bottom-up stock selection process.

VFLO, the VictoryShares Free Cash Flow ETF, tracks the Victory U.S. Large Cap Free Cash Flow Index. Inclusion in the index is based on expected free cash flow rather than solely on past cash figures. The index targets companies that can grow cash after capital expenditures, which can indicate capacity for dividends, buybacks or reinvestment. VFLO launched June 21, 2023, carries a 0.39% expense ratio, holds about 51 stocks and had roughly $7.5 billion in assets under management in the cited data.

PVAL, the Putnam Focused Large Cap Value ETF, uses active management with a primary emphasis on forward-looking free cash flow. Putnam’s portfolio managers use cash-flow projections and fundamental research to identify large-cap companies they view as undervalued relative to future cash generation. PVAL began trading May 25, 2021, has a 0.55% expense ratio, holds about 47 stocks and managed roughly $11 billion in the reported figures.

The two ETFs share free cash flow as a common selection signal but have different investable universes and sector weightings. VFLO excludes financials and real estate and concentrates on sectors where capital expenditures and operating cash flow are clearer, including information technology, healthcare and industrials. PVAL includes financials and real estate and evaluates firms in those sectors for free-cash-flow strength.

A holdings comparison dated June 1, 2026 for VFLO and March 30, 2026 for PVAL shows two overlapping names: General Motors (GM), weighted about 2.39% in VFLO and 2.33% in PVAL, and NRG Energy (NRG), at roughly 1.33% in VFLO and 1.00% in PVAL. Combined, the funds represent about 100 unique holdings with minimal overlap.

The pairing pairs a systematic index-based filter with an actively managed portfolio. VFLO applies a consistent screen for forward FCF profiles across a defined index. PVAL applies discretionary judgments through fundamental analysis to select stocks the managers consider mispriced on cash-flow grounds.

Investors can allocate to both funds together as a value sleeve within a broader equity allocation or add either ETF separately to complement existing holdings. Differences in expense ratios, launch dates, sector exposures and holdings counts may affect how each fund is sized in a portfolio.

Free cash flow is the cash remaining after operating expenses and capital expenditures. Both funds emphasize forward-looking FCF metrics rather than reported earnings, with VFLO implementing that emphasis through an index screen and PVAL through active fundamental research.