Micron enters VFLO at 4.20% weight in September rebalance

Micron Technology entered VictoryShares' Free Cash Flow ETF (VFLO) at a 4.20% weight in the fund's September 2026 rebalance, making the memory chipmaker one of VFLO's two largest holdings.

The rebalance also raised Sandisk to 3.88% from 1.83% and lifted VFLO's technology weight to 30.26%, according to ETF Trends. By Sept. 30, the fund held 30.45% in information technology, versus 20.62% for the Russell 1000 Value Index.

Because the index sets no sector limits, an advisor using VFLO as a value sleeve carries 9.8 percentage points more technology than the Russell 1000 Value benchmark. The gap is a by-product of the screens rather than a sector call, and it can widen or close at the next quarterly rebalance.

The Victory U.S. Large Cap Free Cash Flow Index applies profitability screens, then selects large caps on expected free cash flow yield. The yield is the average of trailing and forward 12-month free cash flow divided by enterprise value. Dividing by enterprise value rather than market capitalization favors companies with less net debt, and a secondary growth screen is designed to filter out value traps. Micron and Sandisk cleared those screens with expected free cash flow yields of 7.84% and 8.31% as of Sept. 10, 2026.

Michael Mack, a client portfolio manager at VictoryShares, said this memory cycle differs from past ones. Skeptics, he said, expect higher memory prices to bring oversupply and compress profitability. Mack pointed to higher technical barriers that leave fewer competitors able to produce advanced memory at scale, multi-year customer commitments at Micron and Sandisk that improve revenue visibility, and AI infrastructure demand for high-bandwidth memory that he expects to outlast traditional computing cycles.

The technology overweight runs opposite to VictoryShares' small-cap free cash flow fund. As Private Wealth Daily previously reported, VictoryShares SFLO cut technology to 20.6% at its rebalance. The two index strategies screen different universes, small caps versus large caps.

The index rebalances quarterly, and the next set of weights will be whatever clears the yield and growth screens at the next rebalance.