GFLW Rebalance Brings in High-Quality Names Amid Rising Valuations

The VictoryShares Free Cash Flow Growth ETF (GFLW) has undergone its quarterly rebalance, bringing in three notable additions to its core holdings. Caterpillar Inc. (CAT), Royalty Pharma plc (RPRX), and Dell Technologies Inc. (DELL) have joined the fund at 3.13%, 2.10%, and 2.82% respectively as of July 31, 2026.

The additions are a result of the fund's rules-based methodology, which systematically filters out companies that fail to generate high free cash flow (FCF) return on invested capital (FCF ROIC). The Victory Free Cash Flow Growth Index selects U.S. companies with high FCF ROIC and ability to compound FCF over time.

The index narrows down a broad U.S. equity universe through a four-step screen: removing companies with negative five-year FCF trend, selecting the top 150 by FCF ROIC, growth score, and finally weighting them based on FCF size and one-year risk-adjusted momentum.