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RAFE - ETF AI Analysis

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RAFE

PIMCO RAFI ESG U.S. ETF (RAFE)

Rating:72Outperform
Price Target:
RAFE, the PIMCO RAFI ESG U.S. ETF, earns a solid overall rating largely because it holds several financially strong, industry-leading companies like Apple, Microsoft, Merck, and Verizon, which combine robust performance, growth potential, and generally attractive valuations. The presence of more mixed names such as AT&T, Procter & Gamble, and Citigroup—where debt, technical weakness, or valuation concerns show up—tempers the fund’s appeal somewhat, and investors should also note its meaningful exposure to large U.S. telecom and financial firms as a key risk factor.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many sectors, with meaningful stakes in technology, health care, financials, and consumer stocks, which helps reduce reliance on any single industry.
Supportive Recent Performance
The ETF has shown positive performance over the past month, three months, and year to date, indicating recent upward momentum.
Several Strong Top Holdings
Key positions in companies like Johnson & Johnson, UnitedHealth, Merck, Citigroup, Verizon, and AT&T have been performing well so far this year, helping support the fund’s overall returns.
Negative Factors
Heavy U.S. Concentration
With almost all assets invested in U.S. companies, the fund offers very limited geographic diversification and is highly tied to the U.S. market.
Mixed Performance Among Largest Stocks
Some major holdings such as Apple, Microsoft, JPMorgan Chase, and Procter & Gamble have been weak this year, which can drag on the ETF’s results if that trend continues.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for a U.S. equity ETF, meaning fees take a somewhat larger bite out of returns compared with the cheapest index funds.

RAFE vs. SPDR S&P 500 ETF (SPY)

RAFE Summary

The PIMCO RAFI ESG U.S. ETF (RAFE) is a fund that tracks the RAFI ESG US Index, aiming to cover most of the U.S. stock market while focusing on companies that meet certain environmental, social, and governance (ESG) standards. It holds a wide mix of large, mid, and small U.S. companies, including well-known names like Apple and Microsoft, plus major health care and financial firms. Someone might invest in this ETF to get broad diversification in U.S. stocks while trying to support more responsible businesses. A key risk is that its value can rise and fall with the overall stock market and with trends in ESG investing.
How much will it cost me?The PIMCO RAFI ESG U.S. ETF (RAFE) has an expense ratio of 0.29%, which means you’ll pay $2.90 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed and incorporates ESG criteria, which require more research and oversight compared to passively managed funds. It’s a good option if you value sustainable investing and are comfortable with the slightly higher cost.
What would affect this ETF?The PIMCO RAFI ESG U.S. ETF could benefit from growing interest in ESG investing and the strong performance of its top holdings in technology and healthcare, sectors that often thrive during innovation and demographic shifts. However, potential risks include regulatory changes affecting ESG criteria, economic downturns impacting consumer spending, or rising interest rates that could pressure financial and cyclical sectors. Its focus on U.S. equities also makes it sensitive to domestic economic conditions and policy changes.

RAFE Top 10 Holdings

RAFE leans heavily into U.S. tech and health care, with Apple and Microsoft acting as key swing factors: Apple has been rising again after a soft start to the year, while Microsoft’s recent moves have been more mixed, keeping its impact in check. On the defensive side, steady names like Johnson & Johnson and Merck are quietly supporting the fund, and UnitedHealth has been a bright spot lately. Big banks and telecoms such as JPMorgan and Verizon add diversification, but they’re more background players than headline drivers right now.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple5.16%$7.06M$3.98T27.35%
79
Outperform
Microsoft4.16%$5.69M$3.15T8.60%
79
Outperform
Johnson & Johnson3.42%$4.68M$547.64B45.05%
78
Outperform
UnitedHealth3.14%$4.30M$322.15B-15.55%
72
Outperform
JPMorgan Chase2.54%$3.47M$831.44B28.13%
72
Outperform
Merck & Company2.25%$3.08M$276.38B32.50%
80
Outperform
Verizon2.18%$2.98M$195.62B11.11%
81
Outperform
Citigroup2.17%$2.96M$219.47B89.13%
68
Neutral
AT&T2.13%$2.91M$182.97B-6.38%
71
Outperform
Procter & Gamble2.00%$2.74M$344.37B-8.31%
69
Neutral

RAFE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
42.62
Positive
100DMA
42.52
Positive
200DMA
41.03
Positive
Market Momentum
MACD
0.56
Negative
RSI
65.25
Neutral
STOCH
50.26
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RAFE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 43.26, equal to the 50-day MA of 42.62, and equal to the 200-day MA of 41.03, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 50.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAFE.

RAFE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$138.76M0.29%
72
Outperform
$950.18M0.59%
69
Neutral
$874.18M0.27%
71
Outperform
$866.63M1.30%
64
Neutral
$825.56M0.15%
73
Outperform
$805.18M0.50%
76
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAFE
PIMCO RAFI ESG U.S. ETF
44.02
9.43
27.26%
SYLD
Cambria Shareholder Yield ETF
AUSF
Global X Adaptive U.S. Factor ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
FDMO
Fidelity Momentum Factor ETF
HLAL
Wahed FTSE USA Shariah ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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