VFLO Position Trimmed by 82,000 Shares Amid Strong Year-to-Date Performance—What Investors Should Know

Understanding the Move

Recent SEC filings reveal that WBI Investments has trimmed its stake in VictoryShares Free Cash Flow ETF (NASDAQ: VFLO), offloading 82,398 shares in what represents a strategic repositioning rather than a loss-of-confidence signal. The transaction reduced the firm’s holding by approximately $2.6 million, bringing the remaining position to 160,664 shares valued at $6.02 million.

The Shift in Fund Composition

This reduction has subtle but notable implications for WBI Investments’ portfolio weighting. VFLO’s share of the fund’s assets under management (AUM) declined from 1.77% to 1.54% following the transaction, yet the ETF maintains a presence in the fund’s top five holdings. The current allocation sits just below the $18.35 million position in WBIF (4.7% of AUM), making VFLO a meaningful but not dominant component of the institutional portfolio.

The broader holding structure reveals:

• WBIY: $24.10 million (6.2% of AUM)
• WBIL: $20.95 million (5.4% of AUM)
• WBIG: $20.85 million (5.3% of AUM)
• WBIF: $18.35 million (4.7% of AUM)
• VFLO: $6.02 million (1.54% of AUM)

Performance Context

As of late December 2025, VFLO shares were trading near $39.80, reflecting a 16.3% gain over the preceding twelve months. This strong performance trajectory likely influenced the decision to crystallize gains. The ETF’s total return, including dividend reinvestment, has outpaced the broader S&P 500 benchmark during the current calendar year, suggesting the portfolio trim reflects profit-taking on a winning position rather than fundamental concern about future prospects.

The Strategy Behind VFLO

Understanding what makes this ETF worthy of institutional attention requires examining its selection methodology. The fund begins with the 400 largest profitable U.S. companies, then applies a rigorous free cash flow screen to identify the 75 firms generating the highest free cash flow yield. A final filtration step removes entities with strong cash generation but weak growth trajectories, resulting in a carefully curated portfolio of 50 large- and mid-cap stocks combining both capital returns and growth potential.

This approach targets a specific investor archetype: those seeking exposure to quality equities that generate meaningful income while maintaining expansion prospects. Companies selected for this index often return excess cash to shareholders through dividends and share repurchases, simultaneously maintain financial flexibility for debt reduction or strategic investments.

Should Individual Investors Consider VFLO?

The WBI reduction doesn’t signal declining confidence in the ETF’s fundamentals. Rather, it reflects portfolio optimization at the institutional level—trimming winners to rebalance allocations. For individual investors evaluating whether VFLO deserves portfolio inclusion, the underlying appeal remains intact.

The dividend yield of 1.57% provides an income component, while the 18.3% total return (including dividends) demonstrates capital appreciation potential. The fund’s rules-based methodology ensures systematic selection of quality businesses, avoiding the performance whipsaw of actively managed alternatives while maintaining lower costs than traditional fund structures.

For those seeking a single-position anchor holding that combines growth and income characteristics, VFLO’s composition—40 to 50 carefully selected companies emphasizing free cash flow strength—offers a balanced exposure pathway to U.S. equities beyond passive index replication.