The VictoryShares Free Cash Flow ETF (VFLO B+) has outpaced the broader U.S. equity market, year-to-date and since inception, by tracking the Victory U.S. Large Cap Free Cash Flow Index (the Index) which targets companies with high free cash flow (FCF) yields and strong growth prospects. The results reflect a rules-based methodology built to identify companies generating real cash, with the capacity to reinvest it or return it to shareholders.As of April 30, 2026, VFLO’s NAV return climbed 7.16% year-to-date; its market price return was 7.13%. Both figures beat the S&P 500 Index’s 5.70% return over the same period. That outperformance extends well beyond the short term: since inception on June 21, 2023, VFLO has delivered an annualized NAV return of 21.65% and market price return of 21.64%, compared with the S&P 500’s 20.80% gain over the same period. See VFLO’s standardized performance below against its benchmark.Standardized ETF Performance (%) as of 3/31/2026Past 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 the 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. Performance may reflect certain past fee waivers and/or expense reimbursements, without which performance would have been lower. Net expense ratios reflect the contractual waiver and/or reimbursement of management fees through October 31, 2026.Key Takeaways
FCF is a measure of the cash a company generates after capital expenditures and it is a primary indicator of financial health and the organizing principle behind the Index methodology.
VFLO’s index prioritizes companies with high trailing and anticipated FCF yields, as well as demonstrated growth potential, applying a rules-based screen designed to surface quality across market cycles.
While Tech and Energy have been recent drivers, long-term attribution shows broader strength. From travel and tourism to electricity generation, the index’s methodology has successfully identified FCF leaders across diverse market segments.
As with any investment, individual holdings have detracted from performance in certain periods. Since inception, names including Pinterest, Cognizant Technology Solutions Corp. and Halliburton have posted negative returns during their time in the portfolio — a reminder that FCF-focused screening does not eliminate drawdown risk.
Technology and Energy: The Sectors Driving VFLO's 2026 ReturnsRecent attribution data highlights an outsized contribution from the Energy and Technology sectors. Year-to-date through April 30, 2026, Dell Technologies, Inc. has been a standout contributor, returning 56.88% and adding 1.49% to the ETF’s overall performance. That result underscores the Victory U.S. Large Cap Free Cash Flow Index’s ability to capture tech-driven growth when it is backed by actual cash generation and is reflected in a company’s valuation through FCF yield.
The Energy sector also provided a robust tailwind over recent history. Traditional powerhouses like Valero Energy Corp. posted a total return of 37.06%, from Jan 1, 2025 – Dec 31, 2025. More recently, Valero contributed 1.03% to the ETF’s total return year-to-date as of April 30, 2026, prior to screening out of the Index’s quarterly rebalance.Free Cash Flow ETF Performance Since Inception: Expedia, Vistra, NRGSince VFLO’s inception on June 21, 2023, outperformance has drawn from a wide range of cyclical and growth industries rather than a concentrated bet on any single sector.
In travel and tourism, Expedia Group, Inc. surged 138.90% from June 21, 2023, through April 30, 2026. In electricity generation, Vistra Corp. and NRG Energy gained 545.58% and 386.95%, respectively, over the same period. These names illustrate the type of opportunity the Victory U.S. Large Cap Free Cash Flow Index is built to identify: companies generating significant free cash flow with the financial flexibility to reinvest in growth or return capital to shareholders.
On the opposite end of the spectrum, however, there were underperformers. Pinterest was down 45.4%, Cognizant Technology Solutions Corp lost 44.6%, and Haliburton Company was down 39% within that same time period.
Nonetheless, across shifting market conditions – from a tech-driven growth rally to an energy cycle – VFLO’s index methodology has consistently identified companies with the cash generation to sustain and build on performance. The breadth of that attribution, spanning industries as varied as online travel and power generation, reflects the cross-sector reach of a screen built on a fundamental financial signal rather than sector or style tilts.
Note: VFLO held each of these securities during portions of the periods shown. The Fund did not hold all of them for the full period. Current portfolio weights for all named securities are disclosed below.
For more news, information, and analysis, visit the Free Cash Flow Content Hub.
Returns sourced through Bloomberg and attribution sourced through FactSet. As of 4/30/2026, VFLO had a 3.56% weight in Dell Technologies, Inc., no exposure to Valero Energy Corp., a 2.74% weight in Expedia Group Inc., no exposure to Vistra Corp, a 1.68% weight in NRG Energy, no exposure to Pinterest or Haliburton Company and a 1.80% weight to Cognizant Technology Solutions Corporation Class A.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 //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. VFLO 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. The fund 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 energy sector may be subject to substantial government regulation, as well as risks involving changes in energy prices, international political instability, and liability for environmental damage and accidents resulting in loss of life or property. The profitability of companies in the healthcare sector may be affected by government regulations and healthcare programs, fluctuations in the cost of, and demand for, medical products and services and product liability claims. Derivatives may not work as intended and may result in losses. The Fund may frequently change its holdings, resulting in higher fees, lower returns, and more 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 U.S. Large Cap Free Cash Flow Index aims to select high quality companies from its starting universe by applying profitability screens. It then selects companies with the strongest free cash flow yield that exhibit higher growth. The Index is rebalanced and reconstituted quarterly. This Index calculates free cash flow yield by dividing expected free cash flow by enterprise value. Expected free cash flow is the average of trailing 12-month FCF and next 12-month forward free cash flow. Enterprise value (EV) measures a company’s total value, often used as a more comprehensive alternative to equity market capitalization.
VictoryShares ETFs distributed by Victory Capital Services, Inc. (VCS). VCS is not affiliated with VettaFi.
©2026 Victory Capital Management Inc. All Rights Reserved.
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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.
