PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM)

Overview

The fund is designed to provide investors with exposure to emerging markets through a strategy that emphasizes multiple factors. By investing at least 80% of its assets in the securities that make up the RAFI Dynamic Multi-Factor Emerging Markets Index, the fund seeks to achieve its investment objective. This index, constructed by RAFI Indices, LLC, adopts a rules-based approach to create diversified factor portfolios, aiming to capitalize on various market inefficiencies. These factor portfolios focus on specific investment traits such as value, low volatility, quality, and momentum, each chosen for its potential to enhance returns and reduce risk compared to the broader market.

Products and Services

• RAFI Dynamic Multi-Factor Emerging Markets Index Investments

  This represents the fund's core investment, targeting securities that are part of the RAFI Dynamic Multi-Factor Emerging Markets Index. By focusing on this index, the fund seeks to benefit from a diverse range of emerging market securities selected based on value, low volatility, quality, and momentum. This diversified approach aims to mitigate risk while offering the potential for significant returns.

• Factor Portfolios Construction

  The fund utilizes a sophisticated, rules-based strategy to construct its factor portfolios, each emphasizing a different investment factor — value, low volatility, quality, or momentum. This methodological approach to portfolio construction is designed to harness specific market inefficiencies, thereby offering investors an optimized balance of risk and return. Through this strategy, the fund attempts to outperform traditional market-cap-weighted indexes by targeting factors that are most likely to deliver superior performance over time.