Should Investors Buy VictoryShares Free Cash Flow ETF (VFLO) After Atlas Wealth Added $9 Million of the ETF?

Atlas Wealth LLC reported a significant buy of Victory Portfolios II - VictoryShares Free Cash Flow ETF (NASDAQ:VFLO), increasing its position by 230,856 shares, a net value change of $8.7 million, according to a Nov. 12, 2025, SEC filing.

What happened

Atlas Wealth disclosed in a Nov. 12, 2025, SEC filing that it increased its stake in VictoryShares Free Cash Flow ETF (VFLO) by 230,856 shares during the third quarter.

This move brought its total holding to 240,171 shares, with a reported value of $9 million as of Sept. 30, 2025.

The transaction comprised an estimated $8.7 million addition based on quarterly average pricing.

What else to know

The VFLO position was expanded, and now accounts for 2.9% of Atlas Wealth's 13F reportable assets, which places it outside the fund's top five holdings.

Atlas Wealth's top holdings after the filing:

1. Apple (NASDAQ:AAPL): $20.81 million (6.7% of AUM)
2. U.S. Bancorp Preferred Shares, Series B: $20.67 million (6.7% of AUM)
3. Microsoft (NASDAQ:MSFT): $15.04 million (4.9% of AUM)
4. Procter & Gamble (NYSE:PG): $12.54 million (4.0% of AUM)
5. Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG): $12.16 million (3.9% of AUM)

As of Nov. 11, 2025, shares were priced at $38.35 and very near 52-week highs.

The ETF posted a one-year total return of 8%, underperforming the S&P 500 by 5 percentage points over the same period.

The fund’s current annualized dividend yield stands at 1.50%.

Company overview

Company snapshot

VictoryShares Free Cash Flow ETF (VFLO):

• Investment strategy and objective: The ETF seeks to replicate the performance of an index composed of 50 U.S. large- and mid-cap companies selected for strong free cash flow characteristics, using a rules-based methodology.
• Underlying holdings and portfolio composition: The fund holds a diversified basket of equities from the S-Network U.S. Equity Large/Mid-Cap 1000 Index, employing a full replication approach to closely match index constituents.
• Expense ratio and fund structure: Structured as an exchange-traded fund, the vehicle employs a transparent, rules-based selection process.

VictoryShares Free Cash Flow ETF offers investors targeted access to U.S. large- and mid-cap equities that exhibit robust free cash flow generation.

The fund's strategy leverages a systematic index methodology to identify companies with strong free cash flow fundamentals.

The fund employs a rules-based methodology, focusing on companies with strong free cash flow characteristics, and provides equity exposure with an income component.

Foolish take

Atlas Wealth's purchase of VictoryShares Free Cash Flow ETF (VFLO) is an interesting development -- especially as I've seen multiple firms scoop up the ETF recently.

Focused on buying high-quality S&P 500 stocks with high free cash flow (FCF) yields, VFLO boasts a low P/E ratio of just 16.

This robust FCF at a low valuation stands in stark contrast to the broader market right now, which trades at a lofty valuation and heavily favors growth-oriented stocks, often with minimal cash generation.

In my opinion, what makes VFLO interesting is that, despite owning stocks typically viewed as "boring" or "stable," the ETF has equaled the S&P 500's total returns since its debut in June 2023.

The ETF's top five positions are steady-Eddie names like Merck (NYSE:MRK), Qualcomm (NASDAQ:QCOM), Cigna (NYSE:CI), Cisco Systems (NASDAQ:CSCO), and Exxon Mobile (NYSE:XOM). The fact that VFLO is only slightly lagging behind the S&P 500's incredible tech-powered run this year makes it an intriguing ETF to watch.

That said, its expense ratio is 0.39%, which is significantly higher than that of a simple S&P 500 tracking fund. Therefore, interested investors will want to monitor the ETF's performance more closely than they might with an index.

That said, Atlas Wealth's purchase of VFLO makes a lot of sense, and the ETF could also be a welcome addition for any investor seeking a safer, dividend-paying fund.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.

Free Cash Flow: The cash a company generates after accounting for capital expenditures, available for dividends, debt repayment, or reinvestment.

AUM (Assets Under Management): The total market value of assets that an investment firm or fund manages on behalf of clients.

13F Reportable Assets: Securities that institutional investment managers must disclose quarterly to the SEC if managing over $100 million.

Dividend Yield: The annual dividend income expressed as a percentage of the investment's current price.

Total Return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.

Replication Approach: A fund management method where the fund holds all or most securities in its benchmark index to closely track performance.

Rules-Based Methodology: An investment strategy that selects securities using predetermined, systematic criteria rather than manager discretion.

Index Constituent: An individual security included in a specific market index.

Annualized: A figure converted to a yearly rate, allowing comparison across different time periods.

Portfolio Composition: The mix of asset types and individual holdings within an investment fund.

Expense Ratio: The annual fee, expressed as a percentage of assets, that a fund charges to cover operating costs.

Josh Kohn-Lindquist has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Apple, Cisco Systems, Merck, Microsoft, and Qualcomm. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.