The VictoryShares Free Cash Flow Growth ETF (GFLW) recently celebrated its six-month trading milestone after launching on December 3, 2024, making this a great opportunity to review the ETF’s distinct exposure as well as the performance it has delivered.
GFLW saw quick adoption, reaching $500 million in assets under management just six months after it launched. GFLW delivers exposure to a portfolio of growth companies designed to compound FCF over time.
GFLW tracks the Victory Free Cash Flow Growth Index (the Index), a rules-based index that offers access to 100 high-quality,1 large-cap U.S. growth companies. These companies are selected for their high FCF profitability and growth potential.
The Index methodology considers both past and anticipated free cash flow (FCF) to identify companies likely to maintain and increase their FCF generation over time. We believe GFLW can be a compelling option for large-cap growth exposure.
See more: VictoryShares Launches GFLW, a Growth-Oriented FCF ETF
Why Pairing Growth & Profitability May Enhance Performance
Growth alone can be overstated as a standalone factor. We believe it reaches its true potential when combined with profitability. In our view, companies that generate high FCF from invested capital and display higher growth characteristics are most likely to compound earnings at the highest rate. Traditional growth indexes, like the Russell 1000® Growth Index, focus only on growth, and omit the power of profitability.
Year to date through June 30, 2025, GFLW handily outpaced its benchmark. The FCF growth ETF is up 10.55% based on NAV return and up 10.43% based on market price. Meanwhile, the Russell 1000® Growth Index was only up 6.09%.
For more news, information, and analysis, visit the Free Cash Flow Content Hub.
VettaFi LLC (“VettaFi”) is the index provider for GFLW, for which it receives an index licensing fee. However, GFLW 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 GFLW.
¹The Victory Free Cash Flow Growth Index first screens for companies with a positive 5-year FCF trend and selects the top companies based on the highest FCF return on invested capital.
Standardized ETF Performance (%) as of 6/30/2025
Source: Victory Capital Reporting; Inception date of GFLW is 12/3/2024. GFLW’s net and gross expense ratios are 0.39% and 0.58%, respectively.
Past performance does not guarantee future results. The performance data quoted represents past performance and current performance may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month-end, visit www.victoryshares.com.
ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market price returns are based on price of the last reported trade on the fund’s primary exchange. If you trade your shares at another time, your return may differ. Returns include reinvestment of dividends and capital gains. Performance for periods greater than one year is annualized. High, double-digit returns are highly unusual and cannot be sustained. Investors should be aware that these returns were primarily achieved during favorable market conditions. Fee waivers and/or expense reimbursements were in place for some or all periods shown, without which, fund performance would have been lower. Net expense ratio reflects the contractual waiver and/or reimbursement of management fees through October 31, 2026.
Carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit http://www.vcm.com/prospectus. Read it carefully before investing.
All investing involves risk, including the potential loss of principal. Please note that the Fund is a new ETF with a limited history. The Fund has the same risks as the underlying securities traded on the exchange throughout the day. ETFs may trade at a premium or discount to their net asset value. The Fund invests in securities included in, or representative of securities included in, the Index, regardless of their investment merits. The performance of the Fund may diverge from that of the Index.
Investing in companies with high free cash flows could lead to underperformance when such investments are unpopular or during periods of industry disruption. The Funds could also be affected by company-specific factors that could jeopardize the generation of free cash flow. Large shareholders, including other funds advised by the Adviser, may own a substantial amount of the Funds’ shares. The actions of large shareholders, including large inflows or outflows, may adversely affect other shareholders, including potentially increasing capital gains. The value of your investment is also subject to geopolitical risks such as wars, terrorism, trade disputes, environmental disasters, and public health crises; the risk of technology malfunctions or disruptions; and the responses to such events by governments and/or individual companies.
The Victory Free Cash Flow Growth Index measures the performance of profitable companies that generate high free cash flow from invested capital and display higher growth characteristics. The index is subject to sector and security weight constraints. The constituents are weighted by modified absolute momentum.
VictoryShares ETFs distributed by Victory Capital Services, Inc. (VCS). VCS is not affiliated with VettaFi.
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