VictoryShares International Free Cash Flow Growth ETF (GRIN)

Overview

The VictoryShares International Free Cash Flow Growth ETF (ICFG) seeks to provide investment results that track the performance of the Nasdaq International Free Cash Flow Select Index. The fund invests in international (non-US) companies with high free cash flow growth, focusing on long-term capital appreciation.

Reputation and Reliability

VictoryShares is known for its rules-based, factor-driven ETFs. They are considered a reliable issuer with a growing presence in the ETF market.

Management Expertise

Victory Capital Management, the parent company, has experienced portfolio managers and research teams dedicated to factor-based investing.

Goal

The ETF aims to achieve long-term capital appreciation by investing in international companies demonstrating strong free cash flow growth.

Investment Approach and Strategy

Strategy: The fund tracks the Nasdaq International Free Cash Flow Select Index, which screens for companies with high free cash flow growth. It employs a full replication strategy.

Composition The ETF primarily holds stocks of international (non-US) companies. The sector allocation varies based on the index methodology.

Market Share: Data unavailable.

Total Net Assets (AUM): 171123085

Key Competitors

• Schwab Fundamental International Large Company ETF (FNDF)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)

Competitive Landscape

The international equity ETF market is highly competitive. ICFG differentiates itself with its focus on free cash flow growth, while competitors may prioritize broader market exposure or different fundamental factors. VEA and IEFA are broad market ETFs providing diversified exposure, whereas FNDF is also fundamentally weighted. A disadvantage of ICFG is it has a higher expense ratio compared to broader market cap weighted ETFs.

Historical Performance: Historical performance data is available from the fund's inception. Reviewing past performance is essential to understand its track record during different market conditions.

Benchmark Comparison: Comparing the ETF's performance against the Nasdaq International Free Cash Flow Select Index is crucial for evaluating its tracking efficiency.

Expense Ratio: 0.5

Average Trading Volume

The ETF's average trading volume indicates how easily shares can be bought or sold without significantly impacting the price, with higher volume generally indicating better liquidity.

Bid-Ask Spread

The bid-ask spread, which is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, is typically tight for more liquid ETFs, reflecting lower trading costs.

Market Environment Factors

Economic indicators in developed international markets, sector-specific growth within those markets, and overall global market sentiment influence ICFG's performance.

Growth Trajectory

The ETF's growth depends on the performance of international companies exhibiting strong free cash flow growth and the overall attractiveness of the international equity market.

Competitive Edge

ICFG's competitive edge lies in its targeted approach to identifying international companies with high free cash flow growth, potentially leading to superior long-term returns. The fund's factor-based methodology provides a systematic way to select and weight holdings. This focus differentiates it from broader market ETFs. By targeting companies with robust free cash flow, ICFG aims to capture companies with the potential for sustainable growth and profitability.

Volatility

The ETF's volatility reflects the fluctuations in its share price over time, indicating the degree of risk associated with the investment.

Market Risk

Specific risks include currency risk (due to international investments), political and economic instability in foreign markets, and the potential for underperformance relative to the broader market.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation through exposure to international equities and who believes in the value of free cash flow as a growth indicator.

Market Risk

This ETF is suitable for long-term investors seeking international equity exposure with a focus on free cash flow growth. It may be less suitable for active traders due to its specific investment focus.

The VictoryShares International Free Cash Flow Growth ETF (ICFG) offers targeted exposure to international companies with high free cash flow growth. It suits long-term investors seeking capital appreciation and diversification beyond the US market. The ETF's performance depends on the success of its factor-based methodology and the overall health of international economies. However, its relatively higher expense ratio can affect the returns. Investors should carefully consider the fund's investment strategy and risk factors before investing.

Data Sources:

• VictoryShares Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before investing.