Gaining Perspective The Advantages of Free-Cash Flow in Portfolio Construction
Free-cash-flow yield is the surplus cash after expenses and investments divided by the price of the security. Free-cashflow yield has been used for a long time by active hedge funds. Now it has become part of the indexing landscape, competing for assets with other quantitative approaches. It has historically outperformed in markets that favored value stocks and shown resilience in growth markets. My guest today will explain why, in today's intangible asset-driven economy, traditional metrics like price to earnings and price to book face challenges, making free cash flow a more relevant valuation metric. We will discuss how advisors should think about free cash flow and the steps VictoryShares & Solutions has taken to enhance traditional approaches.
All investments involve some degree of risk.
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Here are some resources to learn more about VictoryShares:
- VictoryShares Free Cash Flow ETF (VFLO) Product Page- https://www.vcm.com/products/victoryshares-etfs/victoryshares-etfs-list/victoryshares-free-cash-flow-etf
- VFLO Brochure- https://www.vcm.com/content/dam/vcm/campaigns/intermediary/VS%20VLFO%20IB.pdf
- VFLO Factsheet- https://www.vcm.com/assets/etf/factsheet-pdf/VS%20VFLO%20FS.pdf
- VettaFi Free Cash Flow Channel- https://www.etftrends.com/free-cash-flow-channel/
Distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Victory Capital Management Inc. or its affiliates.
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