SFLO - ETF AI Analysis

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VictoryShares Small Cap Free Cash Flow ETF (SFLO)

Rating:68Neutral

Price Target:―

The VictoryShares Small Cap Free Cash Flow ETF (SFLO) has a solid overall rating, reflecting a mix of strong performers and some weaker holdings. Catalyst Pharma stands out as a key contributor to the fund's rating, driven by its robust revenue growth, profitability, and attractive valuation. Crescent Energy also adds strength with its strategic acquisitions and strong cash flow generation. However, holdings like Core Natural Resources, which faces financial instability and operational challenges, may have weighed on the ETF's overall score. A potential risk for the fund is its exposure to holdings with profitability concerns, which could impact future performance.

Positive Factors

Strong Sector Exposure

The ETF has significant exposure to high-growth sectors like Technology and Energy, which can drive long-term returns.

Healthy Asset Base

The fund has a solid amount of assets under management, indicating investor confidence and stability.

Reasonable Expense Ratio

The ETF charges a moderate expense ratio, making it cost-effective compared to many actively managed funds.

Negative Factors

Weak Top Holdings Performance

Several of the top holdings, including Core Natural Resources and Crescent Energy, have underperformed year-to-date, which could drag on overall returns.

Over-Concentration in U.S. Market

The fund is almost entirely focused on U.S. companies, limiting diversification and exposure to global markets.

Small Cap Volatility

As a small-cap ETF, the fund may experience higher volatility, which could lead to larger swings in performance during market downturns.

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

AUM412.22M

RegionNorth America

Expense Ratio0.49%

Beta0.98

IssuerVictoryShares

Inception DateDec 21, 2023

Dividend Yield1.14%

Asset ClassEquity

Index TrackedVictory US Small Cap Free Cash Flow Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume39,636

30 Day Avg. Volume66,936

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

35.85

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering198

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

SFLO Summary

The VictoryShares Small Cap Free Cash Flow ETF (SFLO) is an investment fund that focuses on small-cap companies in the U.S. that generate strong free cash flow, which is a sign of financial health and efficiency. It includes a mix of industries like technology, energy, and healthcare, with well-known companies such as Lyft and Jazz Pharmaceuticals among its holdings. Investors might consider SFLO for its potential to capture growth from smaller, up-and-coming businesses while benefiting from a diversified portfolio. However, new investors should be aware that small-cap stocks can be more volatile and sensitive to market changes compared to larger companies.

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

The VictoryShares Small Cap Free Cash Flow ETF (SFLO) leans heavily into energy and technology, with these sectors driving much of its performance. Gulfport Energy and Permian Resources are steady contributors, benefiting from strong cash flow and operational efficiency, while Crescent Energy and Chord Energy are lagging, weighed down by valuation concerns and mixed technical signals. On the tech side, PTC Therapeutics is rising thanks to solid momentum and positive earnings sentiment, but Crocs in consumer cyclical is losing traction amid revenue declines. With its U.S.-focused portfolio, SFLO offers a concentrated play on financially resilient small caps, though sector volatility remains a key factor.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
JAZZ	Jazz Pharmaceuticals	1.99%	$8.18M	$10.46B	41.57%	63 Neutral
LYFT	Lyft	1.88%	$7.75M	$8.56B	26.71%	67 Neutral
CRGY	Crescent Energy Company Class A	1.72%	$7.07M	$2.38B	-36.95%	71 Outperform
CNR	Core Natural Resources	1.57%	$6.48M	$3.96B	-39.52%	42 Neutral
PR	Permian Resources	1.40%	$5.77M	$12.11B	-4.52%	80 Outperform
GPOR	Gulfport Energy	1.39%	$5.72M	$4.28B	26.74%	65 Neutral
PTCT	PTC Therapeutics	1.22%	$5.02M	$6.36B	52.10%	73 Outperform
CROX	Crocs	1.20%	$4.96M	$4.50B	-21.02%	63 Neutral
TPC	Tutor Perini	1.16%	$4.78M	$3.50B	144.68%	63 Neutral
CHRD	Chord Energy	1.13%	$4.67M	$5.39B	-25.25%	68 Neutral

SFLO Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

28.72

Positive

100DMA

28.38

Positive

200DMA

26.58

Positive

Market Momentum

MACD

0.14

Negative

RSI

59.14

Neutral

STOCH

92.74

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For SFLO, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 28.52, equal to the 50-day MA of 28.72, and equal to the 200-day MA of 26.58, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 92.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SFLO.

SFLO Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
SFLO	―	―	$412.22M	0.49%	―
FYX	―	―	$919.43M	0.60%	―
OUSM	―	―	$909.86M	0.48%	―
DWAS	―	―	$746.16M	0.60%	―
GSSC	―	―	$722.17M	0.20%	―
JHSC	―	―	$639.13M	0.42%	―

Performance Comparison

SFLO

VictoryShares Small Cap Free Cash Flow ETF

29.27

1.19

4.24%

FYX

First Trust Small Cap Core AlphaDEX Fund

―

OUSM

OShares U.S. Small-Cap Quality Dividend ETF

―

DWAS

Invesco DWA SmallCap Momentum ETF

―

GSSC

Goldman Sachs Activebeta U.S. Small Cap Equity ETF

―

JHSC

John Hancock Multifactor Small Cap 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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