The RACWI US ETF (ticker: RAUS) is a distinctive investment vehicle designed for investors seeking exposure to the entire U.S. equity market with a strategic emphasis on value. This ETF falls under the Size and Style category, specifically targeting the Total Market with a niche focus on identifying undervalued stocks. RAUS is passively managed, with its primary objective being to track an index that meticulously selects U.S. stocks based on four fundamental value factors: price-to-earnings, price-to-book, price-to-sales, and price-to-cash flow ratios. By incorporating these value metrics, the ETF aims to identify companies that exhibit strong potential for price appreciation relative to their intrinsic worth.
Once the stocks are selected, RAUS employs a market-cap weighting approach within its portfolio, which aligns the holdings proportionally to the size of each company in the market. This strategic weighting is designed to enhance the potential for returns by balancing the influence of both large and small companies. The overarching goal of RAUS is to outperform traditional market-cap weighted U.S. equity indexes by capitalizing on the value investing philosophy, which seeks to uncover opportunities where the market may have undervalued certain stocks.
Investors in RAUS can expect a diversified exposure to the U.S. equity market, with a portfolio composition that prioritizes financial soundness and growth potential. This makes the RACWI US ETF an appealing choice for those who wish to harness the benefits of value investing while maintaining broad market exposure.
For ETFs, the calculations for the Smart Score, Analyst Consensus, Price Target, Blogger Sentiment, News Sentiment and Insider Transactions are based on the weighted average of the ETF's holdings and some additional factors. Hedge Fund Trend, Crowd Wisdom and Technicals are based on the actual ETF ticker.