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VFLO ETF pairs free cash flow screening with a growth filter

The VictoryShares Free Cash Flow ETF tracks the Victory U.S. Large Cap Free Cash Flow Index, which uses expected free cash flow, averaging trailing and forward 12-month FCF.

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ETF Trends reports that the VictoryShares Free Cash Flow ETF, VFLO, is designed to challenge the idea that value-focused strategies require giving up growth.

According to ETF Trends, VFLO tracks the Victory U.S. Large Cap Free Cash Flow Index, which applies a free cash flow screen to identify companies that trade at valuations below the value benchmark while also showing attractive growth prospects.

ETF Trends says the index uses expected free cash flow, defined as the average of a company’s trailing and forward 12-month free cash flow, as part of its methodology.

The outlet notes that free cash flow represents cash left after covering expenses, which can be used for reinvestment, dividends, debt paydown, and other shareholder value activities.

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