SFLO ETF targets quality small-cap firms with strong free cash flow for stable growth amid market volatility.

The VictoryShares Small Cap Free Cash Flow ETF (SFLO) focuses on small-cap companies with high and consistent free cash flow (FCF), using a quality-first index that combines trailing and forward FCF estimates. This approach favors firms with strong balance sheets and growth potential, offering investors a lower-volatility alternative to broad small-cap indexes like the Russell 2000. SFLO includes diverse sectors, highlighting companies such as Oscar Health and Scorpio Tankers, and is positioned to perform well in the current environment of higher interest rates where capital costs are elevated. The ETF charges a net expense ratio of 0.49%, providing a disciplined, cash-flow-driven strategy for small-cap value investing.