Lance Humphrey, head of portfolio management at Victory Capital, and Dom Rizzo, portfolio manager at T. Rowe Price, joined Nate Geraci on this week’s ETF Prime to discuss quality investing and active technology strategies. Victory Capital now ranks as a top 30 ETF issuer with 23 ETFs and over $21 billion in assets, having attracted $1.7 billion in inflows year-to-date.
Key Takeaways:
- Victory Capital attracts $1.7B in ETF inflows year-to-date as top-30 issuer.
- Free cash flow yield outperforms traditional value metrics, Humphrey says.
- T. Rowe Price tech ETF holds private AI companies OpenAI and Databricks.
Humphrey discussed the firm’s free cash flow suite of ETFs, led by the VictoryShares Free Cash Flow ETF (VFLO) with over $6.5 billion in assets. He argued that quality should be defined as profitability plus price, with free cash flow yield serving as a more effective measure than traditional metrics like price-to-book.
Rizzo manages the T. Rowe Price Technology ETF (TTEQ), which he described as an all-weather strategy. The fund holds private companies including OpenAI and Anthropic. It maintains approximately 30% exposure to the Magnificent Seven stocks while capping individual positions at around 11%.
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VettaFi LLC (“VettaFi”) is the index provider for VFLO, for which it receives an index licensing fee. However, VFLO 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 VFLO.
