Recorded at the Exchange ETF Conference, host Ryan Nauman welcomes Michael Mack, client portfolio manager at Victory Capital, to discuss key market risks and portfolio implications for financial advisors. Mack highlights concentration risk, noting the “Mag Seven” comprise about 35% of the S&P 500 and can show up unexpectedly across strategies, alongside valuation risk with the market near ~22x earnings. He explains how free cash flow can improve value and growth analysis, including how heavy AI-related CapEx can make Mag Seven look more expensive on free cash flow than earnings. Mack outlines mitigation ideas such as considering small caps, using value strategies that seek meaningful discounts, and applying growth/profitability screens to avoid value traps. He also describes how free-cash-flow ETFs can complement cap-weighted cores, dividend/value funds, and growth allocations by broadening exposure beyond mega-caps.

Zephyr can help financial advisors locate the best ETF strategies for their clients. Learn more here.
Learn more about Victory Capital here.

00:00 Welcome and Disclosures
00:40 Live at ETF Conference
01:26 Meet Michael Mack
02:23 Victory Capital Overview
03:07 Top Market Risks Today
05:13 Tech Value Opportunities
06:26 Mitigating Valuation Risk
09:29 Why Free Cash Flow Matters
11:25 Using FCF in Value and Growth
14:19 Advisor Portfolio Implementation
17:03 Wrap Up and Resources

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