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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 thanks to meaningful positions in high-quality companies like Microsoft, Apple, and Merck, which combine strong financial performance with attractive long-term growth drivers such as cloud, AI, and robust drug pipelines. Verizon and Johnson & Johnson also support the fund with solid cash flows and strategic execution, though holdings like AT&T and Procter & Gamble introduce some drag due to bearish technical trends, high debt, or valuation concerns. The main risk factor is that several key holdings face leverage, valuation, or competitive pressures, which could weigh on returns if market conditions worsen.
Positive Factors
Broad Sector Diversification
The fund spreads its investments across many sectors, which can help reduce the impact if any one industry struggles.
Defensive Blue-Chip Holdings
Several top positions are large, established companies in health care, consumer staples, and financials that tend to provide steadier performance over time.
Moderate Expense Ratio
The fund’s fee is reasonable for an actively constructed ESG strategy, helping investors keep more of their returns compared with higher-cost options.
Negative Factors
Heavy U.S. Concentration
With almost all assets in U.S. stocks, the ETF offers very little geographic diversification and is highly tied to the U.S. market.
Weak Performance in Key Top Holdings
Several of the largest positions, including major technology and financial names, have shown weak year-to-date performance, which can drag on the fund’s results.
Tech and Health Care Dominance
A large share of the portfolio is in technology and health care, so a downturn in these sectors could hurt the ETF more than a more evenly balanced fund.

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

RAFE Summary

PIMCO RAFI ESG U.S. ETF (RAFE) tracks the RAFI ESG US Index, aiming to cover a wide range of U.S. stocks while focusing on companies that score better on environmental, social, and governance (ESG) practices. It holds many well-known names like Apple and Microsoft, along with health care, financial, and consumer companies, giving investors broad diversification across the U.S. market. Someone might invest in RAFE to seek long-term growth while aligning their money with more responsible businesses. A key risk is that it can still go up and down with the overall stock market, especially U.S. tech and health care stocks.
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 more like brakes than engines lately as both have been losing steam and weighing on returns. On the flip side, steady pharma giants Johnson & Johnson and Merck have been quietly pulling their weight, helping offset some of that tech softness. In communications, Verizon and AT&T have been relative bright spots, adding a bit of lift. Overall, the fund is broadly diversified across the U.S. market but still feels the push and pull of a few big, familiar names.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple5.16%$6.51M$3.73T13.35%
79
Outperform
Microsoft3.85%$4.85M$2.75T-3.13%
79
Outperform
Johnson & Johnson3.84%$4.84M$589.08B57.34%
78
Outperform
JPMorgan Chase2.56%$3.23M$793.36B19.66%
72
Outperform
Merck & Company2.55%$3.22M$297.40B38.07%
80
Outperform
Verizon2.54%$3.21M$211.73B12.20%
81
Outperform
UnitedHealth2.53%$3.20M$245.61B-48.28%
72
Outperform
AT&T2.50%$3.16M$202.95B3.02%
71
Outperform
Procter & Gamble2.05%$2.59M$335.68B-14.78%
69
Neutral
Citigroup2.03%$2.56M$198.39B58.04%
68
Neutral

RAFE Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
42.68
Negative
100DMA
42.25
Negative
200DMA
40.72
Positive
Market Momentum
MACD
-0.47
Positive
RSI
45.69
Neutral
STOCH
31.51
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RAFE, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 41.79, equal to the 50-day MA of 42.68, and equal to the 200-day MA of 40.72, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 31.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RAFE.

RAFE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$124.41M0.29%
72
Outperform
$945.14M0.10%
75
Outperform
$902.28M0.59%
69
Neutral
$858.68M1.30%
60
Neutral
$822.77M0.27%
71
Outperform
$719.76M0.52%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAFE
PIMCO RAFI ESG U.S. ETF
41.61
5.70
15.87%
SUSL
iShares ESG MSCI USA Leaders ETF
SYLD
Cambria Shareholder Yield ETF
ULTY
YieldMax Ultra Option Income Strategy ETF
AUSF
Global X Adaptive U.S. Factor ETF
PFM
Invesco Dividend Achievers 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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