SFLO - ETF AI Analysis

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VictoryShares Small Cap Free Cash Flow ETF (SFLO)

Rating:69Neutral

Price Target:―

SFLO’s rating suggests it is a solid but not top-tier small-cap ETF, with its quality driven by holdings like Permian Resources and Alkermes, which show strong financial performance, strategic execution, and positive earnings outlooks. Symbotic and SM Energy also add to the fund’s appeal with growth potential and operational strength, though their valuation issues, leverage, and technical caution signals, along with weaker names like Core Natural Resources facing financial instability, hold the overall rating back. The main risk is that several holdings carry valuation and financial challenges, which can increase volatility in a concentrated small-cap, free-cash-flow-focused strategy.

Positive Factors

Strong AUM Base

The fund has built a sizable asset base, suggesting growing investor interest and better trading liquidity.

Healthy Recent Performance

The ETF has shown positive performance over the last three months, indicating improving momentum despite a soft recent month.

Balanced Sector Mix

Holdings are spread across several sectors like energy, consumer, health care, and technology, which helps reduce reliance on any single industry.

Negative Factors

Higher Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which can eat into long‑term returns compared with lower-cost options.

Heavy U.S. Concentration

With almost all assets in U.S. stocks, the ETF offers very limited geographic diversification and is highly tied to the U.S. market.

Sector Concentration in Energy and Consumer Cyclical

A large portion of the portfolio is in economically sensitive sectors like energy and consumer cyclical, which can make the fund more volatile during market downturns.

SFLO vs. SPDR S&P 500 ETF (SPY)

AUM480.76M

RegionNorth America

Expense Ratio0.49%

Beta0.99

IssuerVictoryShares

Inception DateDec 21, 2023

Dividend Yield1.02%

Asset ClassEquity

Index TrackedVictory US Small Cap Free Cash Flow Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume70,773

30 Day Avg. Volume78,279

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

37.62

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering197

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SFLO Summary

The VictoryShares Small Cap Free Cash Flow ETF (SFLO) tracks the Victory US Small Cap Free Cash Flow Index, focusing on smaller U.S. companies that generate solid cash from their businesses. It holds a mix of sectors like energy, technology, and health care, with names such as Lyft and Jazz Pharmaceuticals among its top positions. Someone might invest in SFLO to seek long-term growth and diversification by spreading money across many smaller, fast-growing companies that appear financially healthy. A key risk is that small-cap stocks can be more volatile, so the ETF’s value can rise and fall sharply with the market.

How much will it cost me?The VictoryShares Small Cap Free Cash Flow ETF (SFLO) has an expense ratio of 0.49%, which means you’ll pay $4.90 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed, focusing on small-cap companies with strong free cash flow. Active management typically involves more research and oversight, which can increase costs.

What would affect this ETF?The VictoryShares Small Cap Free Cash Flow ETF (SFLO) could benefit from economic growth in the U.S., as its focus on small-cap companies with strong free cash flow positions these firms to thrive in expanding markets. Positive trends in technology and energy sectors, which make up a significant portion of the ETF, could further drive performance. However, rising interest rates or economic slowdowns may negatively impact small-cap companies, as they often face higher borrowing costs and are more sensitive to market fluctuations.

SFLO Top 10 Holdings

SFLO’s story is all about U.S. small caps that actually throw off cash, with a noticeable tilt toward energy and health care. Permian Resources and Core Natural Resources have been rising and help power returns, while Alkermes and Jazz Pharmaceuticals add steady, if sometimes mixed, momentum from the biotech side. On the flip side, Lyft has been dragging the fund, and SM Energy has lost some steam lately. Symbotic brings a splash of tech-driven growth, but overall the ETF stays diversified across many smaller names rather than one dominant star.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SM	SM Energy	2.42%	$11.79M	$5.11B	-44.29%	72 Outperform
CRGY	Crescent Energy Company Class A	1.58%	$7.70M	$3.36B	-31.20%	66 Neutral
ALKS	Alkermes	1.51%	$7.38M	$5.48B	-7.61%	80 Outperform
CNR	Core Natural Resources	1.43%	$6.95M	$4.69B	15.19%	57 Neutral
PR	Permian Resources	1.41%	$6.88M	$14.35B	22.02%	81 Outperform
JAZZ	Jazz Pharmaceuticals	1.37%	$6.70M	$10.11B	24.15%	64 Neutral
LRN	Stride	1.35%	$6.59M	$3.61B	-39.45%	70 Outperform
TPC	Tutor Perini	1.28%	$6.24M	$4.36B	249.26%	65 Neutral
DINO	HF Sinclair Corporation	1.19%	$5.80M	$10.77B	53.98%	68 Neutral
CRC	California Resources Corp	1.17%	$5.69M	$5.08B	18.02%	71 Outperform

SFLO Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

29.97

Positive

100DMA

29.31

Positive

200DMA

28.01

Positive

Market Momentum

MACD

0.03

Positive

RSI

49.84

Neutral

STOCH

45.27

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SFLO, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 30.05, equal to the 50-day MA of 29.97, and equal to the 200-day MA of 28.01, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 45.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SFLO.

SFLO Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SFLO	―	―	$480.76M	0.49%	―
OUSM	―	―	$944.86M	0.48%	―
GSSC	―	―	$885.69M	0.20%	―
JHSC	―	―	$696.37M	0.42%	―
SMDV	―	―	$673.11M	0.40%	―
BBSC	―	―	$662.07M	0.09%	―

Performance Comparison

SFLO

VictoryShares Small Cap Free Cash Flow ETF

29.98

2.90

10.71%

OUSM

OShares U.S. Small-Cap Quality Dividend ETF

―

GSSC

Goldman Sachs Activebeta U.S. Small Cap Equity ETF

―

JHSC

John Hancock Multifactor Small Cap ETF

―

SMDV

ProShares Russell 2000 Dividend Growers ETF

―

BBSC

JPMorgan BetaBuilders U.S. Small Cap Equity ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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