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Beyond the Mega Caps: Advisors Eye Small- and Mid-Cap Strategies The strong run by the Nasdaq-100 and the S&P 500 the last few years has loaded portfolios with heavy concentration risk. As a tiny group of mega cap tech giants shapes the market, finding meaningful diversification has become a priority for advisors.
Small-cap investing rewards discipline. The VictoryShares Small Cap Free Cash Flow ETF (SFLO) is the small-cap value expression of the VictoryShares Free Cash Flow Suite.
For investors drawn to small caps for their growth potential, the Russell 2000® Index isn't a gold mine. It's a minefield, with nearly 40% of its constituents deemed unprofitable1 by either having negative earnings or negative free cash flow.
SFLO hits a 52-week high, up about 50% from lows; strong cash flow focus and small-cap resilience may support further near-term upside.
Key Takeaways While index-based ETFs are often viewed as buy-and-hold vehicles, quarterly rebalancing ensures these portfolios undergo a strategic facelift to remain aligned with evolving market leadership and current economic realities. Quarterly rebalancing for thematic indexes captured a shift in the international exposure.
When it comes to all-encompassing small cap exposure, the iShares Russell 2000 ETF (IWM) has typically been the default choice.
CALF: Strategy Change Impact Still Positive For These Small/Mid-Cap Cash Cows
There's a lot of buzz about the opportunity in US small cap stocks this year. There's a confluence of factors that seem aligned just right for the segment, chief amongst them earnings growth expectations.
SEC filings for SFLO aren't indexed yet — common for recently launched funds. Browse the issuer's filings on SEC EDGAR directly.