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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 largely because it holds high‑quality leaders like Apple, Microsoft, Merck, and Verizon, which combine strong financial performance with attractive growth or valuation profiles. These strengths are partly offset by holdings such as Citigroup, Procter & Gamble, and AbbVie, where valuation, financial stability, or technical pressures are more mixed. A key risk is that several major positions face specific challenges—like high leverage, overbought or bearish technical signals, or segment headwinds—which could weigh on the fund if market conditions worsen.
Positive Factors
Strong Overall Performance
The ETF has shown strong gains so far this year and solid recent momentum, which suggests its strategy has been working well in the current market.
Healthy Top Holdings
Many of the largest positions, especially in health care and consumer staples, have delivered strong or steady performance, helping support the fund’s returns.
Broad Sector Diversification
The fund spreads its investments across several major sectors, which helps reduce the impact if any single industry experiences a downturn.
Negative Factors
Heavy U.S. Concentration
Almost all of the ETF’s assets are invested in U.S. companies, offering little protection if the U.S. market faces a prolonged slump.
Sector Tilts Toward Technology and Health Care
Large weights in technology and health care mean the fund’s performance is more sensitive to swings in these sectors than a more evenly balanced portfolio would be.
Mixed Results Among Top Tech Holding
One of the major technology positions has shown weak performance this year, which can drag on returns if that stock continues to lag.

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

RAFE Summary

PIMCO RAFI ESG U.S. ETF (RAFE) is a fund that follows the RAFI ESG US Index, focusing on U.S. companies that score well on environmental, social, and governance (ESG) practices. It invests across the whole U.S. stock market, including large, mid, and small companies, with big positions in well-known names like Apple and Microsoft, plus major health care and financial firms. Someone might invest in RAFE to get broad diversification in U.S. stocks while supporting more responsible business practices and seeking long-term growth. A key risk is that the value of the ETF can go up and down with the overall 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

RAFE leans heavily on U.S. tech and health care, with Apple acting as a key engine thanks to its steadily rising share price and ongoing strength in services. Microsoft, while still a heavyweight, has been more of a mixed performer lately, losing some near-term momentum. On the health care side, UnitedHealth, Johnson & Johnson, and Merck are all pulling their weight, giving the fund a solid defensive backbone. Financials like JPMorgan add support, but overall this is a U.S.-centric, ESG-tilted portfolio where a handful of blue-chip names do most of the heavy lifting.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Apple5.15%$8.70M$4.57T35.69%
79
Outperform
Microsoft4.75%$8.03M$3.71T-3.01%
79
Outperform
UnitedHealth3.26%$5.52M$369.69B61.96%
72
Outperform
Johnson & Johnson3.20%$5.42M$624.74B50.62%
78
Outperform
JPMorgan Chase2.62%$4.42M$950.35B24.25%
72
Outperform
Merck & Company2.13%$3.61M$317.57B63.59%
80
Outperform
Verizon1.97%$3.32M$195.52B8.92%
81
Outperform
Procter & Gamble1.84%$3.11M$338.88B-5.51%
69
Neutral
Citigroup1.80%$3.03M$226.45B46.48%
68
Neutral
AT&T1.66%$2.81M$163.02B-14.53%
71
Outperform

RAFE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
48.02
Positive
100DMA
45.89
Positive
200DMA
43.85
Positive
Market Momentum
MACD
0.55
Negative
RSI
67.74
Neutral
STOCH
93.59
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 48.80, equal to the 50-day MA of 48.02, and equal to the 200-day MA of 43.85, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 67.74 is Neutral, neither overbought nor oversold. The STOCH value of 93.59 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
$169.18M0.29%
72
Outperform
$950.94M0.50%
76
Outperform
$933.61M0.18%
71
Outperform
$922.39M0.15%
73
Outperform
$906.42M0.27%
71
Outperform
$824.95M0.45%
74
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAFE
PIMCO RAFI ESG U.S. ETF
49.83
11.27
29.23%
HLAL
Wahed FTSE USA Shariah ETF
VFMF
Vanguard U.S. Multifactor ETF
FDMO
Fidelity Momentum Factor ETF
AUSF
Global X Adaptive U.S. Factor ETF
BGDV
Bahl & Gaynor Dividend 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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