SPHQ vs VFLO

SPHQAInvesco S&P 500 Quality ETF

VFLOBVictoryShares Free Cash Flow ETF

In short

SPHQ Live since 2005, SPHQ is an elder statesman of quality investing: rank the S&P 500 on profitability, earnings quality and balance-sheet strength, hold the top 100, charge 0.15% net of a waiver through August 31, 2028.

VFLO Free cash flow investing with a growth guardrail. VFLO holds about 50 US large caps chosen for high cash flow yields, screened so it isn't just buying whatever looks cheapest. A concentrated bet on companies that actually generate cash.

Stated mandate

SPHQ The fund seeks exposure to the S&P 500 Quality Index and normally invests at least 90% of assets in common stocks included in that index.

VFLO The Fund seeks, before fees and expenses, to closely track the Victory U.S. Large Cap Free Cash Flow Index. It normally invests at least 80% of its assets in securities in that Index.

Why people hold it

• SPHQ 0.15% net of a waiver through August 31, 2028 (0.20% gross), below the median for quality factor funds and level with QUAL and FQAL at 0.15%.
• The rules are published and mechanical: score the S&P 500 on return on equity, accruals ratio and financial leverage ratio, take the top 100, weight by quality score times market cap.spglobal.com
• Universe discipline: candidates come only from the S&P 500, so every holding is an established large cap rather than a smaller name screened in from a broader pool.spglobal.com
• A multi-billion-dollar fund that trades actively, pays quarterly, and has run since 2005. It sits in the stronger tier of quality factor ETFs.

• VFLO The index blends value and growth: high free cash flow yields, but filtered for growth characteristics, so the cheapest names don't automatically make the cut.
• About 50 holdings, so the cash flow screen actually shapes the portfolio instead of getting diluted into a closet index fund.
• The methodology weighs expected free cash flow using forward estimates, not only what a company already banked.vcm.com
• A multi-billion-dollar fund that trades actively, so getting in and out is rarely where the friction shows up.

Worth knowing

• SPHQ About 100 stocks, weighted by quality score times market cap, so the biggest high-scorers carry real weight. Narrower than owning the full S&P 500.spglobal.com
• The index rebalances semiannually, so a company whose fundamentals slip mid-period stays in the portfolio until the next reshuffle.spglobal.com
• Two peers undercut it on fee: JQUA at 0.12% and VFQY at 0.13%.

• VFLO At 0.44%, it costs more than the typical US multifactor fund, and well above broad value options like FNDX (0.25%) or VONV (0.06%).
• Roughly 50 names is real concentration. Sector and single-stock positions can push results a long way from the broad large-cap market, either direction.
• It launched in 2023, so the record is short, and distributions arrive on an irregular cadence rather than a set calendar.

Full SPHQ profile⁠

Full VFLO profile⁠