A Minor Adjustment – And the Market Yawns

by

One gathers Annex Advisory Services, LLC, has been doing a bit of spring cleaning. Or, rather, a January decluttering. They’ve shed 1,421,755 shares of the Victory Portfolios II – VictoryShares Free Cash Flow ETF (VFLO 0.18%). A trifling sum, really, amounting to approximately $54.53 million. One assumes they found a more diverting investment. It’s all frightfully dull, isn’t it?

The impact, one is assured, is minimal. The fund’s overall position saw a decrease of $50.69 million, but frankly, in the grand scheme of things, it’s hardly a cause for alarm. As of December 31st, VFLO accounted for a mere 1.0486% of Annex’s 13F AUM. One pictures the portfolio managers barely noticing its absence.

Their current affections, it appears, lie elsewhere. NASDAQ: UBND leads the charge at $373,537,062 (7.1% of AUM), followed by NYSEMKT: AVUS at $275,474,732 (5.3%). Then come NYSEMKT: SMTH, NYSEMKT: AVEM, and NYSEMKT: IOO – all perfectly respectable, if dreadfully predictable. One suspects a fondness for the mundane.

VFLO, as of January 31st, 2026, was trading at $39.47 – a modest 10.22% gain over the past year. Not exactly setting the world on fire, but then again, one rarely expects fireworks from these things.

Metric Value
AUM $5.91 billion
Price (as of market close 1/31/26) $39.47
Dividend yield 1.58%
1-year total return 10.22%

The fund itself, for those who insist on details, is a curated basket of U.S. large- and mid-cap companies, chosen for their robust free cash flow. Perfectly sound, perfectly boring. It’s a sensible, if uninspired, approach.

One shouldn’t read too much into Annex’s decision. They weren’t particularly enamored with VFLO to begin with. And their increasing commitment to bond ETFs – UBND and SMTH, in particular – suggests a certain… caution. A wise move, perhaps, in these uncertain times. Though one does wonder if it isn’t simply a lack of imagination.

VFLO, having been around for a mere three years, has managed a 59% return since inception. Not bad, not bad at all. Its strongest sector is healthcare, with energy and consumer markets trailing behind. A balanced portfolio, one supposes, though lacking in a certain… panache.

Ultimately, this is all rather unremarkable. A minor adjustment in a portfolio, a shuffling of assets. The market, one suspects, will barely notice. And frankly, neither do I. One has more pressing engagements, you see. Like finding a decent sherry.

Read More

2026-02-01 02:04