Victory Capital Adds VictoryShares® Small Cap Free Cash Flow ETF to its ETF Lineup
22 December 2023 - 12:00AM
Business Wire
Victory Capital Holdings, Inc. (NASDAQ: VCTR) (“Victory Capital”
or the “Company”) today announced that its wholly owned investment
adviser, Victory Capital Management Inc., has launched a new
rules-based exchange-traded fund (“ETF”), VictoryShares Small
Cap Free Cash Flow ETF (SFLO).
SFLO seeks to provide investment results that track the
performance of the Victory U.S. Small Cap Free Cash Flow Index
(“the Index”), which invests in profitable U.S. small-cap companies
with high free cash flow yields and favorable growth prospects. The
Index screens an initial universe of companies for historical and
projected free cash flows. It then goes a step further by
eliminating companies with the worst growth characteristics to seek
better outcomes in a variety of market environments.
“We are excited to expand our free cash flow lineup with the
introduction of SFLO,” said Mannik Dhillon, CFA®,
CAIA®, President, Investment Franchises and Solutions, for
Victory Capital. “SFLO will take the innovative methodologies
employed by the VictoryShares Free Cash Flow ETF (VFLO) to the
small cap segment. Investors will now be able to capitalize on
companies with attractive free cash flow yields without sacrificing
growth potential in the small cap allocation of their
portfolios.”
About Victory Capital
Victory Capital is a diversified global asset management firm
with $159.6 billion in assets under management as of November 30,
2023. The Company employs a next-generation business strategy that
combines boutique investment qualities with the benefits of a fully
integrated, centralized operating and distribution platform.
Victory Capital provides specialized investment strategies to
institutions, intermediaries, retirement platforms and individual
investors. With 11 autonomous Investment Franchises and a Solutions
Business, Victory Capital offers a wide array of investment
products and services, including mutual funds, ETFs, separately
managed accounts, alternative investments, third-party ETF model
strategies, collective investment trusts, private funds, a 529
Education Savings Plan, and brokerage services.
Victory Capital is headquartered in San Antonio, Texas, with
offices and investment professionals in the U.S. and around the
world. To learn more please visit www.vcm.com or follow Victory
Capital on Facebook, Twitter, and LinkedIn.
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.victorysharesliterature.com. Read it
carefully before investing.
The Victory U.S. Small 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 free cash flow and next 12-month
forward free cash flow. Free cash flow (FCF) represents the cash
that a company is able to generate after accounting for capital
expenditures. Enterprise value (EV) measures a company's total
value, often used as a more comprehensive alternative to equity
market capitalization.
The Fund invests 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. Derivatives may not work as intended and may result in
losses. Large shareholders, including other funds advised by the
Adviser, may own a substantial amount of the Fund’s shares. The
actions of shareholders, including large inflows or outflows, may
adversely affect other shareholders, including potentially
increasing capital gains. Investments in mid-cap companies
typically exhibit higher volatility. The value of your investment
is also subject to geopolitical risks such as wars, terrorism,
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. Investments in
small-capitalization companies involve greater risks than those
associated with larger, more established companies. Investing in
companies with high free cash flows could lead to under performance
during periods when such investments are unpopular, and
fluctuations in market conditions, industry disruptions, or
company-specific factors may jeopardize the generation of free cash
flow.
Distributed by Foreside Fund Services, LLC (Foreside). Foreside
is not affiliated with Victory Capital Management Inc. (VCM), the
Fund's advisor. Neither Foreside nor VCM are affiliated with
VettaFi.
Investments involve risk including possible loss of
principal. ETFs have the same risks as the underlying
securities traded on the exchange throughout the day. Redemptions
are limited and often commissions are charged on each trade, and
ETFs may trade at a premium or discount to their net asset
value.
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version on businesswire.com: https://www.businesswire.com/news/home/20231221923285/en/
Investors: Matthew Dennis, CFA Chief of Staff Director,
Investor Relations 216-898-2412 mdennis@vcm.com
Media: Jessica Davila Director, Global Communications
210-694-9693 jessica_davila@vcm.com
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