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RAFE - AI Analysis
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PIMCO RAFI ESG U.S. ETF (RAFE)
Rating:73Outperform
Price Target:
$46.00
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)
AUM102.75M
RegionNorth America
Expense Ratio0.29%
Beta0.86
IssuerPIMCO
Inception DateDec 18, 2019
Dividend Yield1.7%
Asset ClassEquity
Index TrackedRAFI ESG US Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume8,726
30 Day Avg. Volume8,899
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
46.40Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering261
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 on technology and healthcare, with Microsoft and Apple driving steady gains thanks to their strong focus on AI and cloud innovation. Johnson & Johnson adds a healthy dose of stability, rising on robust growth in its core segments. However, UnitedHealth is lagging, weighed down by rising medical costs, while AT&T struggles with bearish momentum despite its 5G investments. With a clear U.S. focus and a tilt toward ESG-friendly names, this fund offers a balanced mix of growth and resilience, though some holdings face headwinds.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Apple | 5.54% | $5.69M | $4.01T | 21.29% | 80 Outperform | |
| Microsoft | 5.43% | $5.57M | $3.85T | 26.18% | 82 Outperform | |
| Johnson & Johnson | 3.35% | $3.44M | $455.04B | 17.95% | 78 Outperform | |
| JPMorgan Chase | 2.88% | $2.96M | $855.50B | 39.55% | 70 Outperform | |
| Cisco Systems | 2.21% | $2.27M | $289.02B | 31.73% | 79 Outperform | |
| Citigroup | 2.11% | $2.17M | $186.35B | 58.89% | 67 Neutral | |
| UnitedHealth | 2.06% | $2.11M | $309.40B | -39.82% | 76 Outperform | |
| Procter & Gamble | 2.04% | $2.09M | $351.37B | -8.92% | 74 Outperform | |
| AT&T | 1.91% | $1.96M | $176.97B | 11.89% | 72 Outperform | |
| Merck & Company | 1.85% | $1.90M | $214.76B | -15.61% | 79 Outperform |
RAFE Technical Analysis
Positive
―
Price Trends
40.28
Positive
39.11
Positive
37.50
Positive
Market Momentum
0.32
Positive
55.87
Neutral
43.90
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 40.89, equal to the 50-day MA of 40.28, and equal to the 200-day MA of 37.50, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 43.90 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
Performance Comparison
RAFE
PIMCO RAFI ESG U.S. ETF
41.13
5.49
15.40%
SYLD
Cambria Shareholder Yield ETF
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PLDR
Putnam Sustainable Leaders ETF
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HLAL
Wahed FTSE USA Shariah ETF
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ABFL
Fcf Us Quality Etf
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PFM
Invesco Dividend Achievers ETF
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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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