Krilogy Financial Adds $15 Million Worth of Victoryshares Free Cash Flow ETF (NASDAQ: VFLO): Should Investors Buy Too?

Krilogy Financial LLC increased its stake in VictoryShares Free Cash Flow ETF (NASDAQ:VFLO) by 314,131 shares, adding $14.8 million worth of shares, according to a November 06, 2025, SEC filing.

What happened

Krilogy Financial disclosed a purchase of 314,131 shares of VictoryShares Free Cash Flow ETF, bringing its total to 1,558,848 shares valued at $58.78 million as of September 30, 2025, according to a filing with the Securities and Exchange Commission dated November 06, 2025.

The position now represents 2.21% of the fund's reportable assets.

What else to know

Krilogy Financial added to its VFLO position, which now makes up 2.21% of its $2.66 billion reportable U.S. equity AUM.

Krilogy's top holdings after the filing:

1. Schwab U.S. Large-Cap Growth ETF (NYSEMKT:SCHG): $106.21 million (4.06% of AUM)
2. PIMCO Multisector Bond Active ETF (NYSEMKT:PYLD): $87.55 million (3.35% of AUM)
3. Dimension U.S. Core Equity Market ETF (NYSEMKT:DFAU): $78.81 million (3.02% of AUM)
4. Schwab U.S. Large-Cap Value ETF (NYSEMKT:SCHV): $74.20 million (2.84% of AUM)
5. Apple (NASDAQ:AAPL): $70.74 million (2.71% of AUM)

As of November 5, 2025, VFLO shares were priced at $37.71, up 14% over the past year, underperforming the S&P 500 by four percentage points.

Shares are 2% below their 52-week high.

Company overview

Company snapshot

Victoryshares Free Cash Flow ETFs:

• Investment strategy targets U.S. large- and mid-cap equities with strong free cash flow characteristics, seeking to replicate the performance of a custom index constructed via a rules-based methodology.
• Portfolio consists of 50 stocks selected from the S-Network US Equity Large/Mid-Cap 1000 Index.

VictoryShares Free Cash Flow ETF (VFLO) provides investors with exposure to a curated basket of U.S. large- and mid-cap companies selected for superior free cash flow metrics.

The fund seeks to deliver index-like returns while emphasizing financial quality, appealing to investors focused on cash flow efficiency.

Its rules-based approach and transparent structure position it as a differentiated solution within the equity ETF landscape.

Foolish take

At first glance, Krilogy Financial's purchase of the Victoryshares Free Cash Flow ETF (VFLO) may seem like a big deal to investors. However, it is worth noting that the firm added to 94 of its top 100 holdings during Q3, so this wasn't an all-in bet on the ETF.

That said, VFLO is still Krilogy's seventh-largest position, so the free-cash-flow-focused (FCF) ETF remains an important holding to the firm.

VFLO looks for U.S. large-cap stocks that offer the best combination of high FCF yields and growth rates.

While this sounds like a winning combination, VFLO has slightly underperformed versus the S&P 500 over the last two years, so it is far too early to tell if the ETF has bottled up any investing magic.

Furthermore, VFLO's expense ratio is 0.39%. While this isn't outrageous for an ETF, it is much higher than the Vanguard S&P 500 ETF (NYSEMKT:VOO) and its ratio of 0.03%.

Taking this into account, VFLO's dividend yield of 1.4% is higher than VOO's 1.1% and the average P/E ratio of the stocks in VFLO's portfolio is only 16, compared to VOO's 28, so it may offer better exposure to value stocks.

If Krilogy plans to keep dollar-cost averaging into VFLO each quarter, I think it is a sensible holding. However, I think owning individual stocks or a broader index (for non-stock-pickers) may make more sense for individual investors.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Assets Under Management (AUM): The total market value of investments managed by a fund or firm on behalf of clients.
Dividend yield: Annual dividends paid by a fund or stock divided by its current price, expressed as a percentage.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Rules-based methodology: An investment approach using predetermined, systematic criteria to select and weight portfolio holdings.
Free cash flow: The cash a company generates after accounting for capital expenditures, available for dividends, debt repayment, or reinvestment.
Custom index: A benchmark specifically designed to track the performance of a unique set of securities based on selected criteria.
Large-cap: Companies with a large market capitalization, typically over $10 billion.
Mid-cap: Companies with a medium market capitalization, generally between $2 billion and $10 billion.
Reportable assets: Assets disclosed in regulatory filings, often referring to holdings that must be reported to authorities.
Equity: Ownership interest in a company, typically in the form of common or preferred stock.
S-Network US Equity Large/Mid-Cap 1000 Index: A stock market index tracking 1,000 large- and mid-cap U.S. companies, used as a benchmark for funds.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.