RAFE - ETF AI Analysis

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PIMCO RAFI ESG U.S. ETF (RAFE)

Rating:72Outperform

Price Target:―

The PIMCO RAFI ESG U.S. ETF (RAFE) benefits from strong contributions by top holdings like Apple and Microsoft, which drive the fund’s rating with their robust financial performance and strategic focus on growth areas such as services, cloud, and AI. However, weaker holdings like Citigroup and UnitedHealth, which face challenges such as high leverage and rising medical costs, slightly temper the overall rating. The fund’s concentration in large-cap stocks across diverse sectors helps balance risks, but investors should be mindful of valuation concerns in some of its top holdings.

Positive Factors

Strong Top Holdings

Several major positions, like Microsoft and Johnson & Johnson, have delivered strong year-to-date performance, supporting the fund's overall returns.

Sector Diversification

The ETF is spread across multiple sectors, including Technology, Health Care, and Financials, reducing reliance on any single industry.

Reasonable Expense Ratio

With a relatively low expense ratio of 0.29%, the fund allows investors to keep more of their returns compared to higher-cost ETFs.

Negative Factors

Over-Concentration in U.S. Market

The ETF has over 99% exposure to U.S. companies, limiting diversification across global markets.

Mixed Performance Among Holdings

Some top holdings, like UnitedHealth and Procter & Gamble, have underperformed year-to-date, which could drag on overall returns.

Heavy Reliance on Technology

With nearly 32% of the portfolio in Technology, the fund is vulnerable to downturns in this sector.

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

AUM112.24M

RegionNorth America

Expense Ratio0.29%

Beta0.84

IssuerPIMCO

Inception DateDec 18, 2019

Dividend Yield1.68%

Asset ClassEquity

Index TrackedRAFI ESG US Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume26,532

30 Day Avg. Volume12,248

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

47.14

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering260

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

RAFE Summary

The PIMCO RAFI ESG U.S. ETF (Ticker: RAFE) is an investment fund that focuses on U.S. companies while incorporating environmental, social, and governance (ESG) principles. It follows the RAFI ESG US Index, which selects stocks based on financial fundamentals like sales and dividends, as well as sustainable business practices. This ETF includes well-known companies like Microsoft and Apple, offering exposure to sectors such as technology and healthcare. Investors might consider RAFE for its diversification across large, mid, and small-cap stocks and its focus on ethical investing. However, new investors should note that its performance can fluctuate with the overall U.S. stock market.

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

The PIMCO RAFI ESG U.S. ETF leans heavily into technology and healthcare, with Apple and Microsoft leading the charge in its tech allocation. Apple has shown steady growth, but Microsoft is losing momentum recently, which could weigh on the fund’s performance. Healthcare names like Johnson & Johnson are rising, providing a stabilizing force, while UnitedHealth has been lagging due to cost pressures. Financials like JPMorgan Chase and Citigroup add diversity, though their performance has been mixed. Overall, the fund is concentrated in U.S. equities, with a tilt toward ESG-friendly giants and steady performers.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AAPL	Apple	5.59%	$6.31M	$4.18T	18.16%	80 Outperform
MSFT	Microsoft	4.99%	$5.63M	$3.62T	12.88%	73 Outperform
JNJ	Johnson & Johnson	3.60%	$4.06M	$494.72B	34.77%	78 Outperform
JPM	JPMorgan Chase	2.87%	$3.23M	$840.96B	26.18%	72 Outperform
CSCO	Cisco Systems	2.30%	$2.59M	$300.44B	27.84%	77 Outperform
MRK	Merck & Company	2.21%	$2.49M	$252.74B	1.21%	76 Outperform
C	Citigroup	2.14%	$2.42M	$183.72B	43.83%	67 Neutral
PG	Procter & Gamble	1.99%	$2.24M	$344.53B	-15.95%	74 Outperform
T	AT&T	1.98%	$2.24M	$182.84B	8.64%	72 Outperform
UNH	UnitedHealth	1.93%	$2.18M	$292.78B	-46.60%	67 Neutral

RAFE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

40.81

Positive

100DMA

39.81

Positive

200DMA

37.89

Positive

Market Momentum

MACD

0.16

Negative

RSI

57.69

Neutral

STOCH

93.41

Negative

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 40.90, equal to the 50-day MA of 40.81, and equal to the 200-day MA of 37.89, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 57.69 is Neutral, neither overbought nor oversold. The STOCH value of 93.41 is Negative, 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
RAFE	―	―	$112.24M	0.29%	―
SYLD	―	―	$882.00M	0.59%	―
PLDR	―	―	$856.80M	0.60%	―
ABFL	―	―	$781.14M	0.49%	―
PFM	―	―	$746.41M	0.52%	―
AUSF	―	―	$736.74M	0.27%	―

Performance Comparison

RAFE

PIMCO RAFI ESG U.S. ETF

41.55

4.26

11.42%

SYLD

Cambria Shareholder Yield ETF

―

PLDR

Putnam Sustainable Leaders ETF

―

ABFL

Fcf Us Quality Etf

―

PFM

Invesco Dividend Achievers ETF

―

AUSF

Global X Adaptive U.S. Factor 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.

Disclaimer

This 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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