FLOW holds companies that generate a high level of free cash flow, which may be better positioned to invest in new projects, increase dividend payouts, or pay down debt.
Measure of Profitability
Stocks of companies with high free cash flow are less sensitive to accounting adjustments that may impair the quality of a company’s profitability.
ETF Efficiency
FLOW allows investors to buy and sell a basket of U.S. equities that have high free cash flow yields,1 with the tax efficiency of an ETF.
1Free cash flow is the cash a company generates after accounting for operating and capital expenditures. Free cash flow yield is defined as a company’s free cash flow per share, divided by its enterprise value per share.
Key Information
ETF Summary
The Global X U.S. Cash Flow Kings 100 ETF (FLOW) offers exposure to U.S. companies that exhibit high free cash flow yields, relative to the broader domestic equity market. Free cash flow is a measure of profitability that correlates with quality, growth and value factor orientations,2 making FLOW a potentially appealing choice as a portfolio’s core allocation. FLOW may minimize idiosyncratic risks by implementing a sector cap of 25% and an individual constituent cap of 2%.
ETF Objective
The Global X U.S. Cash Flow Kings 100 ETF (FLOW) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Global X U.S. Cash Flow Kings 100 Index.
