VictoryShares ETF Rebalanced Portfolio
The fund added Micron Technology and IBM while removing Merck and Atlassian following its latest rebalancing.
Updated on Sept. 21, 2026 in Corporate Finance
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The VictoryShares Free Cash Flow ETF completed a portfolio rebalance on September 18, 2026. The fund adjusted its holdings by adding new positions in Micron Technology and IBM.
Why it matters
The fund reconfigures its portfolio when companies experience compressed free cash flow yields or cooling growth prospects. This strategy ensures the ETF maintains its focus on top-tier large-cap stocks with strong cash generation capabilities.
The rebalanced portfolio now features Micron Technology at 4.20% and IBM at 2.20% weightings. The fund maintains a 50-stock portfolio drawn from the Victory U.S. Large Cap Free Cash Flow Index, excluding the financials and real estate sectors.
The players
VictoryShares
This is an investment firm that manages a series of exchange-traded funds focusing on specific quantitative strategies.
Micron Technology
This is an American producer of computer memory and data storage that was recently added to the ETF's holdings.
IBM
This is a multinational technology corporation known for its hardware, software, and cloud computing services that joined the portfolio.
Merck
This is a major pharmaceutical company that was removed from the ETF during the most recent portfolio rebalance.
The details
The fund employs a methodology that ranks the top 75 U.S. large-cap companies by expected free cash flow yield before applying a growth filter to remove the 25 slowest-growing firms. Following this update, Merck, Atlassian, Airbnb, Veeva Systems, and ADP were removed from the fund's holdings.
Timeline
The ETF completed its portfolio rebalance on September 18, 2026.
Market Dynamics
The fund's recent rebalancing strictly adheres to the systematic selection criteria set by the Victory U.S. Large Cap Free Cash Flow Index. This process reflects a broader trend of quantitative funds utilizing specific free cash flow metrics to navigate shifting market cycles.
Retail investors holding this ETF will see their portfolio exposure shift toward new positions in the technology sector. The changes reflect the fund's internal methodology and could alter the risk and return profile of individual holdings within the investor's portfolio.
The takeaway
The rebalancing highlights how quantitative funds systematically rotate holdings to prioritize companies with stronger cash flow and growth metrics. Investors should monitor how these periodic adjustments align with their personal long-term financial objectives.
Further reading
For additional context on how institutional funds adjust to shifting market conditions, visit the /finance/corporate-finance/ section.
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