VFLO Adds Tech Titans in Latest Rebalance Move
The VictoryShares Free Cash Flow ETF (VFLO) has undergone its latest rebalance on September 18, 2026. This update highlights the fund's ability to identify undervalued companies using a rules-based strategy that targets high expected free cash flow yields.
The VFLO uses a combination of factors to select U.S. large-cap stocks with strong potential for long-term growth. The fund measures expected FCF yield by dividing the average of trailing 12-month and forward 12-month FCF by enterprise value (EV). It then ranks the top 75 U.S. large-cap stocks by this metric and applies a secondary filter to eliminate the slowest-growing companies.
The latest rebalance has brought in new additions such as Micron Technology, IBM, Cognizant, Fox Corp, and Delta Air Lines, which have high operational cash generation and attractive EV relative to projected cash generation. On the other hand, former holdings like Merck, Atlassian, Airbnb, Veeva Systems, and ADP were removed due to expanding valuation multiples reducing their expected FCF yields or lowering their forward growth outlooks.