VFLO vs. DSMC

Last updated Jun 26, 2026

VFLO (VictoryShares Free Cash Flow ETF) and DSMC (Distillate Small/Mid Cash Flow ETF) are both exchange-traded funds - VFLO is a Large Cap Value Equities fund tracking the Victory U.S. Large Cap Free Cash Flow Index, while DSMC is a Small Cap Value Equities fund actively managed by Distillate. VFLO is passively managed, while DSMC is actively managed. Over the past 3 years, VFLO returned 24.07%/yr vs 12.39%/yr for DSMC. Their correlation of 0.82 suggests significant overlap in exposure. VFLO charges 0.39%/yr vs 0.55%/yr for DSMC.

Performance

VFLO vs. DSMC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VictoryShares Free Cash Flow ETF (VFLO) and Distillate Small/Mid Cash Flow ETF (DSMC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VFLO achieves a 16.06% return, which is significantly higher than DSMC's 12.48% return.

VFLO

• 1D: 0.11%
• 1M: 2.72%
• YTD: 16.06%
• 6M: 15.01%
• 1Y: 32.39%
• 3Y*: 24.07%
• 5Y*: —
• 10Y*: —

DSMC

• 1D: -0.39%
• 1M: 0.04%
• YTD: 12.48%
• 6M: 10.89%
• 1Y: 25.28%
• 3Y*: 12.39%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VFLO vs. DSMC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VFLO VictoryShares Free Cash Flow ETF	16.06%	17.51%	21.83%	15.05%
DSMC Distillate Small/Mid Cash Flow ETF	12.48%	2.73%	2.81%	18.35%

Correlation

The correlation between VFLO and DSMC is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (All Time) Calculated using the full available price history since Jun 22, 2023	0.82

The correlation between VFLO and DSMC has been stable across timeframes, ranging from 0.77 to 0.82 - a consistent structural relationship.

VFLO vs. DSMC - Sectors Allocation Comparison

Sectors	VFLO	DSMC
Technology	44.4%	18.0%
Healthcare	17.9%	11.0%
Consumer Cyclical	15.9%	18.7%
Energy	8.6%	14.4%
Communication Services	4.2%	5.8%
Basic Materials	4.1%	3.4%
Industrials	3.6%	16.6%
Utilities	1.3%	-
Financial Services	0.0%	3.0%
Consumer Defensive	0.0%	9.0%
Real Estate	0.0%	0.4%

Return for Risk

VFLO vs. DSMC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VFLO

VFLO Risk / Return Rank: 81
VFLO Sharpe Ratio Rank: 76
VFLO Sortino Ratio Rank: 77
VFLO Omega Ratio Rank: 72
VFLO Calmar Ratio Rank: 91
VFLO Martin Ratio Rank: 87

DSMC

DSMC Risk / Return Rank: 51
DSMC Sharpe Ratio Rank: 47
DSMC Sortino Ratio Rank: 52
DSMC Omega Ratio Rank: 44
DSMC Calmar Ratio Rank: 57
DSMC Martin Ratio Rank: 53

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VFLO vs. DSMC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VictoryShares Free Cash Flow ETF (VFLO) and Distillate Small/Mid Cash Flow ETF (DSMC). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	VFLO	DSMC	Difference
Sharpe ratio: Return per unit of total volatility	2.08	1.47	+0.61
Sortino ratio: Return per unit of downside risk	2.97	2.25	+0.72
Omega ratio: Gain probability vs. loss probability	1.37	1.26	+0.11
Calmar ratio: Return relative to maximum drawdown	5.05	2.46	+2.59
Martin ratio: Return relative to average drawdown	16.09	8.11	+7.98

VFLO vs. DSMC - Sharpe Ratio Comparison

The current VFLO Sharpe Ratio is 2.08, which is higher than the DSMC Sharpe Ratio of 1.47. The chart below compares the historical Sharpe Ratios of VFLO and DSMC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VFLO vs. DSMC - Drawdown Comparison

The maximum VFLO drawdown since its inception was -17.79%, smaller than the maximum DSMC drawdown of -28.62%. Use the drawdown chart below to compare losses from any high point for VFLO and DSMC.

Drawdown Indicators

	VFLO	DSMC	Difference
Max Drawdown Largest peak-to-trough decline	-17.79%	-28.62%	+10.83%
Max Drawdown (1Y) Largest decline over 1 year	-6.44%	-10.33%	+3.89%
Max Drawdown (3Y) Largest decline over 3 years	-17.79%	-28.62%	+10.83%
Current Drawdown Current decline from peak	-5.36%	-2.42%	-2.94%
Average Drawdown Average peak-to-trough decline	-2.46%	-5.93%	+3.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.02%	3.13%	-1.11%

Volatility

VFLO vs. DSMC - Volatility Comparison

VictoryShares Free Cash Flow ETF (VFLO) has a higher volatility of 7.39% compared to Distillate Small/Mid Cash Flow ETF (DSMC) at 4.15%. This indicates that VFLO's price experiences larger fluctuations and is considered to be riskier than DSMC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VFLO	DSMC	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.39%	4.15%	+3.24%
Volatility (6M) Calculated over the trailing 6-month period	11.85%	10.54%	+1.31%
Volatility (1Y) Calculated over the trailing 1-year period	15.65%	17.24%	-1.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.02%	20.29%	-4.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.02%	20.29%	-4.27%

VFLO vs. DSMC - Expense Ratio Comparison

VFLO has a 0.39% expense ratio, which is lower than DSMC's 0.55% expense ratio.

Dividends

VFLO vs. DSMC - Dividend Comparison

VFLO's dividend yield for the trailing twelve months is around 1.16%, which matches DSMC's 1.17% yield.

Position	TTM	2025	2024	2023	2022
DSMC Distillate Small/Mid Cash Flow ETF	1.17%	1.18%	1.31%	1.02%	0.27%
VFLO VictoryShares Free Cash Flow ETF	1.16%	1.60%	1.20%	0.71%	0.00%

Frequently Asked Questions

Can I hold both VFLO and DSMC in my portfolio?

VFLO and DSMC have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFLO or DSMC?

VFLO has higher volatility (7.39%) compared to DSMC (4.15%). In terms of maximum drawdown, VFLO dropped -17.79% vs DSMC's -28.62%.

Which ETF is better, VFLO or DSMC?

On 3-year performance, VFLO leads with 24.07% vs 12.39% for DSMC. On fees, VFLO is cheaper at 0.39% per year. On volatility, DSMC has been the lower-risk option at 4.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VFLO or DSMC?

Over the 3-year period, VFLO has performed better with a 24.07% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VFLO or DSMC?

VFLO is cheaper with a 0.39% expense ratio, compared with 0.55% for DSMC.

Which ETF pays a higher dividend yield, VFLO or DSMC?

DSMC has the higher dividend yield at 1.17%, compared with 1.16% for VFLO.

What is the main difference between VFLO and DSMC?

VFLO is categorized as Large Cap Value Equities, while DSMC is Small Cap Value Equities. They also come from different issuers: Victory and Distillate. Their fees differ too: 0.39% for VFLO and 0.55% for DSMC.

Which has better risk-adjusted returns?

VFLO currently has the higher Sharpe Ratio (2.08 vs 1.47), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.