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VictoryShares targets advisor hurdles to adopting free cash flow ETFs
A TMX VettaFi advisor poll found 28% of respondents were unfamiliar with how FCF yield differs from traditional value metrics, while 20% were unsure how to integrate FCF frameworks into existing portfolios.
Two TMX VettaFi advisor polls highlighted friction points to broader adoption of free cash flow, or FCF, ETF strategies, shaping how VictoryShares positions its FCF lineup for advisors.
According to the webcast, advisors cited education as the biggest barrier, with 28% saying they were unfamiliar with how FCF yield differs structurally from traditional book-to-market or P/E value metrics. Portfolio integration was also a concern, with 20% of respondents uncertain how FCF frameworks fit alongside existing holdings, while 13% worried about unintended sector concentration, such as top-heavy tech exposure.
The polls also showed performance perceptions and usage patterns. Nineteen percent cited a short performance track record, while the remaining 19% reported no hesitation. In the second poll, 36% said they use the VictoryShares FCF ETFs mainly to reduce Mag 7 and mega-cap concentration risk, and 27% said they pair the ETFs alongside an existing dividend or income framework.
ETF Trends reported that other uses included replacing or complementing underperforming traditional passive value funds, with 23% of advisors citing that approach, and some respondents combining multiple VictoryShares FCF ETFs.