Why SanDisk (SNDK) Is GFLW's Top Holding

In the current economic landscape, forward-looking stock narratives take a backseat to sustainable cash generation. That’s why the search for growth opportunities requires a strict screening methodology such as one inherent within the Victory Free Cash Flow Growth Index (the ‘Index’), which the VictoryShares Free Cash Flow Growth ETF (GFLW ) tracks.Recently, SanDisk earned its position within the Index through its combination of high free cash flow return on invested capital and strong growth prospects. With $4.55 billion in operating cash flow over a nine-month stretch, SNDK is certainly a company to keep on investors’ radars.How FCF ROIC Screening Works in GFLWThe Index screens constituents on FCF ROIC: expected FCF divided by invested capital. Expected FCF blends trailing 12-month free cash flow with forward 12-month estimates. That gives the Index a forward-looking lens that backward-looking screens lack. The ratio measures how efficiently a company turns capital into spendable cash. At the end of this strict screening process, the companies left exhibit strong, sustainable cash generation. This quality may enhance portfolio resilience while positioning clients for potential long-term growth. The Index’s approach targets large-cap growth companies that are profitably growing because sales growth alone isn’t quality. Quality growth requires that revenue translate into actual cash flow. See More: Metal, Chips, & Cash: Q1 ‘26 Additions to VictoryShares GFLW Recent earnings data validate exactly why the Index flagged SanDisk not only as a top holding but as the top holding (as of May 31, 2026). Following its high-profile spinoff from Western Digital, SanDisk has become a pure-play flash storage powerhouse that now aligns with the infrastructure tier of the AI spending boom. As companies build out their AI infrastructures, SanDisk has potential to benefit from this growth. And the numbers back that thesis up: On April 30, SanDisk reported quarterly revenue of $5.95 billion and posted net income of $3.62 billion.SanDisk's Zero-Debt Balance SheetSanDisk’s balance sheet is the strongest evidence of disciplined capital management. Management eliminated the company’s debt entirely, leaving a zero-debt balance sheet heading into the AI infrastructure cycle. Rather than follow the current trend of pouring excess capital into AI spending mandates, SanDisk has focused on returning capital to shareholders. The board authorized a $6 billion share buyback program. Management’s confidence is backed by results: SanDisk generated $4.55 billion in operating cash flow over a nine-month stretch ($4.55 billion in operating cash flow for the first nine months of fiscal 2026), a strong leading indicator of free cash flow once capex is netted out. “With a zero-debt balance sheet, strong cash generation, and a recently authorized share repurchase program, we are positioned to deliver substantial long-term value creation for our shareholders,” "said":https://investor.sandisk.com/news-releases/news-release-details/sandisk-reports-fiscal-third-quarter-2026-financial-results David Goeckeler, CEO of SanDisk, in the company’s earnings release. Capturing companies with the highest FCF ROIC takes more than picking Magnificent Seven names or chasing stocks whose price gains have outrun their fundamentals. An objective metric like FCF ROIC cuts through the headline noise and surfaces opportunities like SanDisk. GFLW offers investors systematic exposure to companies like SanDisk that generate real cash, not just revenue headlines. 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.Holdings are subject to change and should not be construed as investment advice or a recommendation to buy, sell, or hold any security.Disclosure InformationCarefully 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 //www.vcm.com/prospectus. Read it carefully before investing. All investing involves risk, including the potential loss of principal.  The market prices of securities may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory conditions, recessions, inflation, or changes in interest or currency rates.  The VictoryShares Free Cash Flow Growth ETF (GFLW) 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. Investing in companies with high free cash flows could lead to underperformance when such investments are unpopular or during periods of industry disruptions. GFLW could also be affected by company-specific factors that could jeopardize the generation of free cash flow. Index Funds invest 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.  *Large shareholders*, including other funds advised by the Adviser, may own a substantial amount of the Fund’s shares. The actions of large shareholders, including large inflows or outflows of cash, may adversely affect other shareholders, including potentially increasing capital gains. Investments concentrated in an industry or group of industries may face more risks and exhibit higher volatility than investments that are more broadly diversified over industries or sectors. Investments in companies in the *industrials sector*, including producers of durable goods and companies that process raw materials, may be adversely affected by changes in supply and demand for products and services, governmental regulation and changes in spending policies, world events and economic conditions. Derivatives may not work as intended and may result in losses.  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 indices are subject to sector and security weight constraints. The constituents are weighted by modified absolute momentum. You cannot invest directly in an index. VictoryShares ETFs distributed by Victory Capital Services, Inc. (VCS). VCS is not affiliated with VettaFi. 20260622-5578290