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VictoryShares Free Cash Flow Growth ETF trims Sterling Infrastructure after surge
After Sterling Infrastructure shares rose 114% in three months, GFLW cut the holding weight nearly in half, to 1.2% from 2.3% during its June rebalance.
VictoryShares Free Cash Flow Growth ETF, GFLW, used its June rebalance to reduce exposure to names that had run up sharply, aiming to dampen portfolio downside risk while maintaining exposure to profitable, cash-generating growth companies, according to ETF Trends.
In one example highlighted by the outlet, data center construction player Sterling Infrastructure surged 114% over a three-month period. The fund trimmed Sterling Infrastructure’s position weight by nearly half, cutting it from 2.3% to 1.2% as part of the rebalance.
ETF Trends also said the rebalance improved the fund’s risk profile. It cited a decline in beta from 1.11 to 1.02 and a drop in total risk from 25.5 to 22.8.
The article describes GFLW’s strategy as rules-based around free cash flow, targeting profitable companies using free cash flow and weighting them with a risk-adjusted momentum approach intended to mitigate potential downside across a market cycle.