Timothy Plan Free Cash Flow Growth ETF (TPFG)

The Timothy Plan Free Cash Flow Growth ETF (ticker: TPFG) is an exchange-traded fund operated by the Timothy Plan organization that selects large-cap U.S. companies whose free cash flow is growing — that is, whose cash generation is expanding over time — and then applies the same Christian values-based screening as the Timothy Plan’s other product line.

“Free cash flow growth captures not just profitability today, but the momentum of profitability — companies whose ability to generate cash is accelerating.”

The distinction: growth in cash flow, not price appreciation

Where TPFC emphasizes static free cash flow (companies that generate a lot of cash right now), TPFG emphasizes the growth trajectory of that cash flow. A company can be generating strong cash flow but stagnating; another might be generating less cash today but expanding its cash generation rapidly. TPFG targets the latter.

Specifically, the fund ranks large-cap U.S. companies by the rate of growth of their free cash flow — year-on-year changes, trends across several periods, and momentum. Companies whose cash generation is expanding are weighted higher; those whose cash generation is flat or shrinking are weighted lower or excluded. The premise is that companies growing their cash flow tend to have improving business conditions, expanding margins, successful capital deployment, or some combination of those — all signs of business health and forward momentum.

This is not growth in the sense of soaring stock prices or rapid revenue expansion. Rather, it is growth in actual cash generation, which may be driven by improving profitability, better capital efficiency, working-capital management, or strategic investments that are starting to pay off. The signal is more conservative than chasing companies with surging revenue, but more forward-looking than simply tracking trailing cash flow.

How values-based screening works alongside the growth filter

Like TPFC, TPFG applies a Christian values-based screening layer. Companies are first ranked by free cash flow growth, then filtered through the Timothy Plan’s ethical screen that excludes industries and practices deemed inconsistent with conservative Christian principles. The screen covers alcohol and tobacco, gambling, contraceptive manufacturing, pornography, certain weapons, and some healthcare practices.

The result is a portfolio of large-cap companies with rising cash generation that also clear the values screen. This creates a specific character: the fund tilts toward improving businesses that are also deemed ethically aligned. A company whose cash flow is declining but generates strong interest from a values perspective will be underweighted or excluded. Conversely, a company with excellent cash flow growth but failing the values screen will not be held.

The portfolio composition

TPFG will skew toward established industries and established companies with improving metrics — think healthcare devices, financial services, consumer staples, or industrials where a company is gaining margin, improving operations, or returning value to shareholders. It will tend to exclude or underweight highly speculative growth sectors and will miss entirely sectors excluded by the values screen.

The portfolio tends to be less volatile than a pure technology-heavy growth fund, because the companies it holds are large, established, and cash-generative by definition. It tends to be less defensive than a stable-dividend fund, because the focus is on cash-flow expansion, not current dividend yield. In practice, it sits somewhere in the middle of the risk-return spectrum, biased toward companies in the expansion phase of the business cycle.

What makes this approach meaningful

The emphasis on cash flow growth rather than price growth has two practical implications. First, it reduces the risk of overpaying for a story. Companies whose stock prices have surged often have less room for further appreciation. Companies whose cash flow is growing, even if the stock is cheaper, often have more runway. Second, cash flow growth is harder for a company to fake. Accounting earnings can be massaged; cash is real, and growth in cash generation signals genuine underlying improvement.

That said, cash flow growth is not guaranteed to persist. A company with three years of rising free cash flow might hit a wall when a product cycle ends, when competition intensifies, or when a major customer goes elsewhere. TPFG captures the growth momentum at the time of ranking, but that momentum can reverse. The fund is neither a guarantee of future performance nor an insurance policy against business disruption.

Costs, efficiency, and tax impact

TPFG is a standard open-ended ETF with no leverage or daily reset. Its expense ratio is comparable to TPFC and other active-selection funds, higher than a passive index but reasonable for a fund that performs regular cash-flow analysis and values-based screening. The prospectus spells out the exact costs.

The ranking and screening processes generate trading activity as companies rise or fall in the rankings and as new cash-flow data emerge. This turnover can create capital-gains distributions in taxable accounts. An investor should review the fund’s recent turnover rate and distributions to estimate the tax cost.

Who holds TPFG and why

This fund appeals to investors seeking exposure to large-cap U.S. companies with improving business quality, filtered through a particular ethical lens. It is neither a pure growth fund nor a conservative value fund, but rather a quality-and-momentum fund with values constraints. It suits investors who believe in both disciplined investing (focusing on cash generation) and values-based investing (excluding certain sectors or practices) and want both principles to guide their holdings.

The fund is less appropriate for investors seeking highest-possible growth or for those who want purely financial selection criteria without an ethical overlay.

Researching TPFG

Start with the prospectus and fact sheet from Timothy Plan, which lays out the free-cash-flow-growth methodology, the values-based screening criteria, the current holdings, the expense ratio, and the distribution history.

Compare TPFG’s returns against other growth-oriented funds and against a broad large-cap index over multiple time horizons (1 year, 3 years, 5 years, and longer if available). Pay attention to how the fund performed in different market environments: in years when profitability expanded, did TPFG outperform? In years when high-growth (but unprofitable) companies rallied, did TPFG lag? That relative performance clarifies the fund’s actual positioning.

Review the turnover and capital-gains distribution history to understand the tax impact, particularly important for taxable accounts. Finally, confirm that the values-based screening aligns with your own principles; while the screening criteria are detailed in the prospectus, investors have different thresholds for what is acceptable, and TPFG’s specific exclusions may differ from your own values.