GFLW Quarterly Rebalance Brings High-Quality Names into Focus
The VictoryShares Free Cash Flow Growth ETF (GFLW) has undergone its quarterly rebalance, welcoming three new additions to its core holdings. As of July 31, 2026, Caterpillar Inc. (CAT), Royalty Pharma plc (RPRX), and Dell Technologies Inc. (DELL) now make up 3.13%, 2.10%, and 2.82% of the fund's portfolio respectively.
The quarterly rebalance is a key component of GFLW's rules-based approach, which highlights companies generating accelerating free cash flow (FCF). FCF is the cash left over after covering operating expenses, interest, taxes, and capital expenditures. This metric provides a cleaner read on operating quality than earnings, which can be distorted by non-cash charges and write-offs.
The fund tracks the Victory Free Cash Flow Growth Index, which selects U.S. companies with high FCF return on invested capital (FCF ROIC) and a proven ability to compound FCF over time. The index narrows a broad U.S. equity universe through a four-step screen, excluding financials and real estate, removing companies with negative five-year FCF trends, and selecting the top 150 by FCF ROIC.