A weakening U.S. dollar and stretched valuations in domestic markets are driving a shift toward international equities. In January 2026, the VictoryShares International Free Cash Flow Growth ETF (GRIN) emerged as a strong performer, easily outpacing the S&P 500.
While the S&P 500 posted a modest 1.5% gain in January, GRIN delivered a return of about 6%. This outperformance was fueled by a unique selection of companies within its holdings, particularly in the semiconductor and defense sectors. Five holdings exhibited the strongest gains: ASML, DISCO Corp, ASM International, Nova Ltd, and Kongsberg Gruppen.
- DISCO Corp: This Japanese manufacturer rose 39.6% in January. It produces high-precision machinery and equipment that’s necessary for cutting, dicing, and grinding semiconductor materials—a must for chipmakers.
- Nova Ltd: Up 39.4% in January, this company is a critical supplier of high-precision measurement and metrology tools. These tools are used to monitor and optimize chip production, making them essential in the semiconductor industry.
- ASM International: This semiconductor equipment company was up 38.9% in January. It designs and manufactures hardware that’s used to deposit thin films on silicon wafers as part of the chip-making process.
- Kongsberg Gruppen AS: This Norwegian company gained 34.3% in January, and primarily operates in the defense and aerospace sector. It develops advanced defense systems, specialized infrastructure, and technology for national security applications.
- ASML: Up 33.6% in January, this company is a leading Dutch supplier of lithography systems. These systems are necessary for chipmakers to print micro-sized patterns that formulate integrated circuits found on semiconductor wafers.
Free Cash Flow Flexibility
With the S&P 500 reaching record highs in 2025, many investors are questioning whether valuations have peaked. This is leading more investors to look outside U.S. borders for value, which GRIN can accomplish with its simple yet effective free cash flow (FCF) screener.
GRIN tracks the Victory International Free Cash Flow Growth Index (the Index), which focuses on companies with strong FCF metrics. FCF is the remaining cash a company has after deducting expenses. FCF could be used to buy back shares, pay dividends, or invest in the company to build shareholder value. Given GRIN’s strength, it provides evidence that the FCF metric isn’t limited to U.S. equities.
GRIN gives investors exposure to high-quality, international large-cap growth companies with the potential to compound free cash flow generation in the future. For investors looking to diversify their portfolios with an international equity ETF, GRIN is worth considering.
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VettaFi LLC (“VettaFi”) is the index provider for GRIN for which it receives an index licensing fee. However, GRIN is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of GRIN.
