Lifestyle Asset Management Eliminates Stake in VFLO Despite Gains

On October 9, 2025, Lifestyle Asset Management, Inc. disclosed a complete exit from VictoryShares Free Cash Flow ETF(NASDAQ:VFLO), selling all shares in a trade estimated at approximately $7 million during Q3.

What happened

Lifestyle Asset Management, Inc. reported the sale of its entire position in Victory Portfolios II - VictoryShares Free Cash Flow ETF(NASDAQ:VFLO), according to a filing with the Securities and Exchange Commission dated October 9, 2025. The fund sold 196,863 shares, with the trade’s estimated value at $6.96 million, based on average prices during the quarter.

What else to know

This was a full sell-out; VFLO previously represented 3.2% of AUM but now represents 0% of the fund’s 13F reportable assets.

Top holdings as of September 30, 2025:

• SPY: $37.2 million (12.7% of AUM)
• IBND: $14.8 million (5% of AUM)
• SDVY: $13.7 million (4.7% of AUM)
• AGG: $12.1 million (4.1% of AUM)
• CWB: $11.3 (3.9% of AUM)

As of October 15, 2025, shares of were priced at $37.36, up 10% YTD, underperforming the S&P 500 by 4.2 percentage points.

ETF overview

ETF snapshot

• The investment strategy focuses on tracking an index of 50 large- and mid-cap U.S. companies using a rules-based methodology.
• Portfolio composition is diversified across constituents of the S-Network US Equity Large/Mid-Cap 1000 Index, with holdings designed to replicate index performance before fees and expenses.
• Structured as an ETF with a transparent, passively managed approach, it is designed for investors seeking exposure to free cash flow leaders.
• VictoryShares Free Cash Flow ETF (VFLO) offers investors access to a curated basket of U.S. large- and mid-cap equities. The fund follows a systematic, index-tracking strategy. VFLO's disciplined methodology provides a targeted solution for capturing the performance of companies within a single ETF.

Foolish take

Lifestyle Asset Management has fully exited its position in the VictoryShares Free Cash Flow ETF (VFLO), selling off roughly $7 million worth. This looks like a strategic portfolio adjustment after a pretty solid year for the fund. VFLO has actually gained about 10% this year through mid-October, which is a bit behind the S&P 500, but still a decent showing in a volatile market. The ETF used to be a smaller part of Lifestyle Asset Management’s holdings, suggesting this sale is more about reallocating funds rather than a negative view of VFLO itself.

VFLO tracks an index of large- and mid-cap U.S. companies that generate a lot of free cash flow—a key indicator of financial health that helps with dividends, paying down debt, and reinvesting in the business. Its passive, rules-based approach is appealing to investors who want consistent exposure to profitable companies without active management fees. So, while Lifestyle Asset Management has moved on, VFLO remains a diversified option for investors who prioritize strong cash flow in their equity portfolios.

Glossary

ETF: Exchange-Traded Fund, a security tracking an index or basket of assets, traded like a stock.
13F reportable assets: Securities holdings that institutional investment managers must disclose quarterly to the SEC if above a certain threshold.
AUM: Assets Under Management, the total market value of investments managed by a fund or firm.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Index-tracking strategy: An investment approach aiming to replicate the performance of a specific market index.
Passively managed: A fund management style that aims to mirror an index rather than actively select investments.
Rules-based methodology: Investment selection guided by predefined, systematic criteria rather than manager discretion.
Constituents: The individual securities or companies that make up an index or portfolio.
Free cash flow: The cash a company generates after accounting for capital expenditures, available for dividends, debt repayment, or reinvestment.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.