Index-Based ETFs Completed September Rebalancing

Several major funds adjusted their portfolio holdings to align with updated fundamental and valuation metrics.

Updated on Sept. 28, 2026 in Investing

Isometric editorial illustration showing a symmetrical stack of industrial containers, representing the systematic nature of index-based ETF rebalancing. — Several major index-based ETFs, including VFLO and QGRO, completed their scheduled September rebalancing cycles, systematically adjusting portfolio holdings to align with updated market metrics. AI Illustration. Upload story photo >

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Multiple index-based ETFs, including VFLO and QGRO, executed scheduled rebalancing cycles during September 2026. These programmatic shifts resulted in various additions and removals of corporate holdings across diverse sectors.

Why it matters

Periodic rebalancing allows funds to capture emerging market trends and integrate companies with stronger fundamentals. This rules-based approach enables assets to adapt to new data without the influence of human manager bias.

The VictoryShares Free Cash Flow ETF, with $11 billion in assets, added Micron Technology at a 4.20% weight and IBM at 2.20%. Meanwhile, the $2 billion American Century US Quality Growth ETF added Amazon at a 3.0% weight while exiting its position in NVIDIA.

The players

VictoryShares Free Cash Flow ETF

This is an exchange-traded fund that focuses on companies exhibiting strong free cash flow profiles.

American Century US Quality Growth ETF

This fund targets companies with demonstrated growth potential and high quality investment characteristics.

Procure Space ETF

This investment fund focuses on companies involved in the global space exploration and technology industry.

Micron Technology

This corporation is a major global manufacturer of computer memory and data storage solutions.

IBM

This technology company provides cloud computing, hardware, and artificial intelligence services globally.

The details

Index-based funds employ rules-based methodologies to adjust their constituent weights at specific intervals. By systematically swapping companies based on valuation or cash flow profiles, these ETFs maintain alignment with their underlying investment mandates.

September 2026 marked the period when multiple index-based ETFs underwent their scheduled rebalancing.

Market Dynamics

The widespread move toward rules-based investment methodologies reflects the broader shift from active to passive index management in the ETF sector. This transition continues to consolidate market power among funds that utilize automated criteria for portfolio management.

Investors should review their portfolio allocations to ensure these changes align with their personal financial goals. Adjustments in fund holdings may alter the risk-reward profile of individual ETF positions held within personal brokerage accounts.

The takeaway

Automated rebalancing ensures that funds remain responsive to current corporate fundamentals without requiring active intervention. Retail investors can view these cycles as a normal feature of maintaining an index-based investment strategy over time.