TRFM - ETF AI Analysis

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AAM Transformers ETF (TRFM)

Rating:67Neutral

Price Target:―

TRFM, the AAM Transformers ETF, earns a solid overall rating thanks to high-quality semiconductor and industrial leaders like Micron, Lam Research, KLA, and Texas Instruments, which benefit from strong financial performance, positive earnings calls, and strategic positioning in AI and advanced technologies. These strengths are partially offset by weaker spots such as SanDisk and Lumentum, where financial and valuation concerns introduce more uncertainty. The main risk factor is elevated valuation and cash flow challenges across several holdings, which could make the fund more sensitive to market pullbacks despite its generally positive outlook.

Positive Factors

Strong Recent Performance

The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Leading Technology and Industrial Holdings

Many of the top holdings in technology and industrials, such as major chipmakers and aerospace companies, have delivered strong year-to-date performance that supports the fund’s returns.

Focused Yet Multi-Sector Exposure

While the ETF is tilted toward technology and industrials, it still includes several other sectors, which helps spread risk across different parts of the economy.

Negative Factors

High U.S. Concentration

With almost all assets invested in U.S. companies, the fund offers little geographic diversification and is heavily tied to the U.S. market.

Sector Concentration Risk

More than half of the portfolio is in technology and a large portion in industrials, so a downturn in these sectors could hurt the ETF more than a broadly diversified fund.

Moderate Expense Ratio

The fund’s expense ratio is not especially low, meaning fees may take a noticeable bite out of long-term returns compared with cheaper ETFs.

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

AUM128.18M

RegionNorth America

Expense Ratio0.49%

Beta1.48

IssuerAAM

Inception DateJul 11, 2022

Dividend Yield0.17%

Asset ClassEquity

Index TrackedPence Transformers Index - Benchmark TR Gross

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume20,465

30 Day Avg. Volume24,274

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

59.32

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering238

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

TRFM Summary

The AAM Transformers ETF (TRFM) tracks the Pence Transformers Index, focusing on companies driving big technology changes, such as artificial intelligence, robotics, renewable energy, and advanced manufacturing. It mainly holds U.S. stocks in technology and industrials, including well-known names like Micron and Advanced Micro Devices (AMD). An investor might consider TRFM to seek long-term growth and to get diversified exposure to several cutting-edge tech themes in a single fund. However, because it is heavily tilted toward technology and innovation-focused companies, its price can be quite volatile and may rise or fall sharply with shifts in the tech sector.

How much will it cost me?The AAM Transformers ETF (TRFM) has an expense ratio of 0.49%, meaning you’ll pay $4.90 per year for every $1,000 invested. This is slightly higher than average because it’s actively managed to focus on transformative technology trends, requiring more research and specialized expertise.

What would affect this ETF?The AAM Transformers ETF (TRFM) could benefit from growing demand for transformative technologies like artificial intelligence, robotics, and renewable energy, especially as its top holdings include innovative companies such as Nvidia, Tesla, and Apple. However, potential risks include rising interest rates, which can negatively impact technology and growth-focused sectors, as well as regulatory changes in the U.S. that could affect key industries or companies within the ETF. Economic slowdowns or reduced consumer spending could also weigh on the ETF’s performance, particularly in cyclical sectors like Consumer and Industrials.

TRFM Top 10 Holdings

TRFM is leaning hard into U.S. transformative tech, with chip and hardware names like Micron, Lam Research, and Western Digital doing much of the heavy lifting as AI and data demand keep them rising. Lumentum has been a standout, adding extra spark with strong momentum tied to cloud and AI infrastructure. On the industrial side, GE Aerospace and GE Vernova are steady contributors, while Boeing is more of a problem child, its ongoing challenges quietly tugging at returns. Overall, the fund is clearly concentrated in U.S. semiconductors and advanced industrials.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SNDK	SanDisk Corp	1.28%	$1.62M	$96.74B	1199.42%	55 Neutral
MU	Micron	1.22%	$1.55M	$471.24B	341.28%	79 Outperform
LRCX	Lam Research	0.97%	$1.24M	$273.32B	185.77%	77 Outperform
GEV	GE Vernova Inc.	0.95%	$1.21M	$228.47B	183.80%	69 Neutral
LITE	Lumentum Holdings	0.95%	$1.21M	$47.98B	949.67%	61 Neutral
KLAC	KLA	0.86%	$1.09M	$192.03B	115.32%	77 Outperform
GE	GE Aerospace	0.83%	$1.05M	$341.02B	66.74%	72 Outperform
NEE	NextEra Energy	0.79%	$1.00M	$190.98B	26.03%	71 Outperform
CIEN	Ciena	0.79%	$999.26K	$48.07B	411.97%	70 Outperform
ANET	Arista Networks	0.78%	$987.11K	$173.69B	72.25%	83 Outperform

TRFM Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

49.32

Negative

100DMA

48.88

Negative

200DMA

46.69

Positive

Market Momentum

MACD

-0.29

Positive

RSI

47.02

Neutral

STOCH

53.57

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For TRFM, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 49.01, equal to the 50-day MA of 49.32, and equal to the 200-day MA of 46.69, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 53.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TRFM.

TRFM Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
TRFM	―	―	$128.18M	0.49%	67 Neutral
IYZ	―	―	$811.47M	0.38%	71 Outperform
SAMT	―	―	$491.07M	0.65%	60 Neutral
FFOX	―	―	$198.68M	1.02%	65 Neutral
DUNK	―	―	$128.47M	0.75%	73 Outperform
FITE	―	―	$111.47M	0.45%	65 Neutral

Performance Comparison

TRFM

AAM Transformers ETF

47.30

12.30

35.14%

IYZ

iShares U.S. Telecommunications ETF

―

SAMT

Strategas Macro Thematic Opportunities ETF

―

FFOX

FundX Future Fund Opportunities ETF

―

DUNK

Dana Unconstrained Equity ETF

―

FITE

SPDR S&P Kensho Future Security 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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