GFLW’s September 2026 Rebalance: Free Cash Flow Meets AI Infrastructure

As of September 30, 2026, more than half of the Russell 1000® Growth Index sat in Information Technology, and its weighted-average market capitalization was more than $2 trillion. The VictoryShares Free Cash Flow Growth ETF (GFLW ) takes a different route to growth exposure. It tracks the Victory Free Cash Flow Growth Index (the “Index”), which selects companies on the free cash flow (FCF)* they generate from invested capital rather than on market size.The Index’s FCF screen was at work in GFLW’s September 2026 rebalance, which replaced 12 of its 100 holdings. Nine of the 12 additions were Information Technology companies tied to the artificial intelligence (AI) infrastructure buildout, led by data storage makers Seagate Technology Holdings Public Limited Company (STX) and Western Digital Corporation (WDC). The Index ranks companies on FCF return on invested capital (FCF ROIC), a measure of how efficiently a company turns its capital into cash.Key Takeaways GFLW replaced 12 of its 100 holdings; nine of the 12 additions were Information Technology companies, led by data storage makers Seagate and Western Digital. As of September 30, 2026, GFLW’s weighted-average market capitalization was about one-fifth that of the Russell 1000® Growth Index, and the fund held roughly 11 percentage points less in Information Technology. GFLW’s current holdings have converted more of their earnings into FCF over the past five years compared to the benchmark. See More: GFLW: Growth Is Alive & Well With This Free Cash Flow ETFWhat Changed at GFLW’s September Rebalance?Seagate entered at a 2.19% weight and Western Digital at 2.11% as of September 18, 2026. Netflix, Inc. (NFLX), at 2.00%, and test-and-measurement company Keysight Technologies, Inc. (KEYS), at 1.35%, rounded out the largest additions. The 12 deletions came mostly from outside Information Technology, the largest of which were Hecla Mining Company (HL), ResMed Inc. (RMD) and Coca-Cola Consolidated, Inc. (COKE). Health Care rose from 15.83% to 17.56% of the portfolio and Communication Services from 5.40% to 7.17%, while Materials fell from 4.76% to 3.12%. Information Technology was essentially unchanged at 44.47%, compared with 44.92% before. Over the same two days, the portfolio’s FCF ROIC rose from 46.21% to 47.92%, while its forward price-to-earnings (P/E) ratio edged up from 23.0 to 23.3. In other words, the rebalance shifted the portfolio toward companies that generate more cash from the capital they employ, at a slightly higher valuation.How Does GFLW Compare With the Russell 1000® Growth Index?Against the Russell 1000® Growth Index, the effect of the Index’s FCF screen showed up in size, sector mix and cash conversion. GFLW’s holdings were far smaller on a weighted-average basis, and the fund carried more weight in Health Care and Industrials and less in Information Technology and Communication Services. That helps explain an apparent contradiction: GFLW added nine technology companies in September yet held roughly 11 percentage points less in Information Technology than the benchmark. Because the Index ranks companies on cash returns rather than size, GFLW’s technology exposure is spread across hardware, data storage and semiconductor equipment companies. It isn’t concentrated in the handful of companies with the largest market values that make up much of the benchmark. GFLW vs. Russell 1000® Growth IndexTop 10 Holdings in GFLW as of September 30, 2026How Does GFLW’s Index Select Holdings?GFLW’s Index, the Victory Free Cash Flow Growth Index, starts with the VettaFi 1000 Index, removes companies with a negative five-year FCF trend and excludes Financials and Real Estate. It then selects 100 holdings by ranking the remaining companies on FCF ROIC and a growth score. The growth score blends trends in sales and in earnings before interest, taxes, depreciation and amortization (EBITDA) with long-term earnings per share (EPS) growth estimates. The Index rebalances quarterly, with the next rebalance scheduled for December 18, 2026, at market close. *FCF is the cash a company has left after covering operating expenses, interest, taxes and capital expenditures. 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.Disclosure Information 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 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 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. 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. 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