At a glance
- Nine of the additions were Information Technology companies tied to the artificial intelligence infrastructure buildout.
- Information Technology was essentially unchanged at 44.47% of the portfolio, from 44.92%, even after nine tech additions.
- For advisors, a portfolio combining GFLW with a Russell 1000 Growth Index fund owns two different technology mixes, not a doubled position in the same mega-caps.
The VictoryShares Free Cash Flow Growth ETF (GFLW) replaced 12 of its 100 holdings in the September 2026 rebalance of the Victory Free Cash Flow Growth Index it tracks, according to ETF Trends. Nine of the additions were Information Technology companies tied to the artificial intelligence infrastructure buildout.
Information Technology was essentially unchanged at 44.47% of the portfolio, from 44.92%, even after nine tech additions. The deletions were spread across Materials, Health Care and other sectors. Health Care rose from 15.83% to 17.56% of the portfolio and Communication Services from 5.40% to 7.17%, while Materials fell from 4.76% to 3.12%. GFLW still held roughly 11 percentage points less in Information Technology than the Russell 1000 Growth Index, which had more than half its weight in the sector as of Sept. 30, 2026.
For advisors, a portfolio combining GFLW with a Russell 1000 Growth Index fund owns two different technology mixes, not a doubled position in the same mega-caps.
The index ranks companies on free cash flow return on invested capital (FCF ROIC)—how efficiently capital converts into cash—rather than market size, then screens a large-cap universe down to 100 names. Over the two days spanning the rebalance, the portfolio's FCF ROIC rose from 46.21% to 47.92% and its forward price-to-earnings ratio edged from 23.0 to 23.3, ETF Trends reported.
Data storage makers Seagate Technology (STX) and Western Digital (WDC) led the additions at 2.19% and 2.11% of assets as of Sept. 18, 2026. Netflix (NFLX) entered at 2.00% and Keysight Technologies (KEYS) at 1.35%. The 12 deletions were mostly outside Information Technology, led by Hecla Mining (HL), ResMed (RMD) and Coca-Cola Consolidated (COKE).
GFLW's weighted-average market capitalization was far smaller than the benchmark's, whose weighted-average market capitalization exceeded $2 trillion, according to ETF Trends. Because the screen selects on cash returns, GFLW's technology exposure sits in hardware, data storage and semiconductor equipment names rather than the largest-cap companies that dominate the benchmark.
As this publication previously reported, the index picks its 100 names through five years of positive free cash flow growth, a forward-looking FCF ROIC screen and a quarterly deletion of cash-negative constituents.
The next test arrives at the December rebalance, the index's quarterly review, when another deletion pass runs against the new technology weightings.
Tech held flat while Health Care and Comm Services rose
Share of GFLW portfolio by sector, before and after the September 2026 rebalance
Show as table
| Item | Before | After | Change |
|---|---|---|---|
| Information Technology | 44.92% | 44.47% | −0.45% |
| Health Care | 15.83% | 17.56% | +1.73% |
| Communication Services | 5.4% | 7.17% | +1.77% |
| Materials | 4.76% | 3.12% | −1.64% |
Reported by the Passive & Indexing desk from ETF Trends. Published . Corrections