RAFE - ETF AI Analysis

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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 strong, diversified holdings like Microsoft, Apple, and Merck, which combine robust financial performance with attractive growth prospects in areas such as cloud, AI, and healthcare innovation. Verizon and Johnson & Johnson further support the fund with healthy cash flows and strategic execution, while weaker spots like Procter & Gamble and Citigroup, which face valuation, technical, or operational challenges, slightly temper the rating. The main risk factor is that several key holdings still carry issues such as high debt, competitive pressures, or mixed technical signals, which could add volatility even within this broadly diversified U.S. portfolio.

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)

AUM126.90M

RegionNorth America

Expense Ratio0.29%

Beta0.84

IssuerPIMCO

Inception DateDec 18, 2019

Dividend Yield1.65%

Asset ClassEquity

Index TrackedRAFI ESG US Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume11,058

30 Day Avg. Volume13,144

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

50.10

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering251

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 is leaning heavily into U.S. tech and health care, but its story right now is a tug-of-war between winners and laggards. On the upside, defensive names like Johnson & Johnson, Merck, Verizon, AT&T, and Procter & Gamble are quietly pulling the fund forward with steady to rising performance. On the other side, big tech heavyweight Microsoft and health care giant UnitedHealth are losing steam, while Apple and JPMorgan look more mixed. With all holdings U.S.-based, this is a domestically focused, ESG-tilted play with notable concentration in a few mega-cap names.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
AAPL	Apple	5.04%	$6.39M	$3.82T	14.24%	79 Outperform
JNJ	Johnson & Johnson	4.20%	$5.33M	$584.62B	44.66%	78 Outperform
MSFT	Microsoft	4.01%	$5.08M	$3.04T	7.69%	79 Outperform
MRK	Merck & Company	2.59%	$3.29M	$289.54B	22.98%	80 Outperform
VZ	Verizon	2.54%	$3.21M	$212.78B	8.52%	81 Outperform
JPM	JPMorgan Chase	2.50%	$3.17M	$781.92B	24.85%	72 Outperform
T	AT&T	2.40%	$3.04M	$192.73B	0.92%	71 Outperform
UNH	UnitedHealth	2.32%	$2.94M	$258.84B	-40.62%	72 Outperform
PG	Procter & Gamble	2.17%	$2.75M	$360.73B	-11.94%	69 Neutral
CSCO	Cisco Systems	2.11%	$2.67M	$301.02B	22.80%	77 Outperform

RAFE Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

43.02

Negative

100DMA

42.18

Positive

200DMA

40.33

Positive

Market Momentum

MACD

-0.13

Positive

RSI

38.82

Neutral

STOCH

29.52

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RAFE, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 43.39, equal to the 50-day MA of 43.02, and equal to the 200-day MA of 40.33, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.82 is Neutral, neither overbought nor oversold. The STOCH value of 29.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RAFE.

RAFE Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
RAFE	―	―	$126.90M	0.29%	72 Outperform
ULTY	―	―	$953.40M	1.30%	60 Neutral
SYLD	―	―	$925.18M	0.59%	69 Neutral
AUSF	―	―	$843.63M	0.27%	71 Outperform
HLAL	―	―	$752.63M	0.50%	76 Outperform
PFM	―	―	$752.21M	0.52%	73 Outperform

Performance Comparison

RAFE

PIMCO RAFI ESG U.S. ETF

42.36

6.87

19.36%

ULTY

YieldMax Ultra Option Income Strategy ETF

―

SYLD

Cambria Shareholder Yield ETF

―

AUSF

Global X Adaptive U.S. Factor ETF

―

HLAL

Wahed FTSE USA Shariah 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.

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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