IWB - VFLO ETF: Better Than COWZ Maybe Worth A Look Now

2024-07-16 12:19:03 ET

Summary

• VFLO, which only made its debut in the markets in June 2023, has done reasonably well, generating 28% returns and largely outperforming the broader markets except in recent months.
• We highlight why VFLO is a better pick than COWZ, which tends to dominate fund flows in the FCF ETF space.
• VFLO is a good buy now due to its tilt towards defensive sectors like healthcare, oversold large and midcap value stocks, cheap valuations, and the formation of positive price action.

Introduction

One of the more deep-rooted hypotheses of the investment world is that the value of a company is essentially the present value of its future free cash flows ((FCF)). Despite the relentless discourse surrounding FCF and how cardinal it is in gauging the quality of an investment, there hasn’t quite been an overabundance of ETF products that use the FCF metric as a key tenet in portfolio construction....

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