ETF Evaluator: PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF () Follow This ETF

PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF Overview

PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF (MFEM) is a passively managed International Equity Diversified Emerging Mkts exchange-traded fund (ETF). PIMCO launched the ETF in 2017.

The investment seeks to track the investment results of the RAFI Dynamic Multi-Factor Emerging Markets Index. The fund seeks to achieve its investment objective by investing at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities of the RAFI Dynamic Multi-Factor Emerging Markets Index. The underlying index is constructed by RAFI Indices, LLC using a rules-based approach to construct factor portfolios within the underlying index. The underlying index consists of "factor portfolios," each of which emphasizes one of the following factors: value, low volatility, quality and momentum.

About PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF (MFEM)

There are 2 members of the management team with an average tenure of 8.92 years: Eden Simmer (2017) and Alexander Steiner (2017). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI EM NR USD index with a weighting of 100% and RAFI Dynamic Multi-Factor EM TR USD index with a weighting of 100%. PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF has 704 securities in its portfolio. The top 10 holdings constitute 18.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF is part of the Equity global asset class and is within the International Equity ETF group. PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF has 98.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.3% There is 98.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF has 0.7% of the portfolio in cash.

Assets Under Management

The fund has $141 million in total assets, which is below the $3 billion average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

MFEM Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF expense ratio is average compared to funds in the Diversified Emerging Mkts category. PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF has an expense ratio of 0.49%, which is 5% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF has a portfolio turnover rate of 39%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 44% for the Diversified Emerging Mkts category.

Recently, in the month of July 2026, PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF returned -5.2%, which earned it a grade of D, as the Diversified Emerging Mkts category had an average return of -3.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF has a trailing yield of 2.38%, which is below the 2.41% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PIMCO RAFI Dyn Mlt-Fctr Emrg Mkts Eq ETF Grades

Year to date, the ETF has returned 15.6%, 1.5 percentage points worse than the category, which translates into a grade of D. The fund has returned 28.1% over the past year (grade of D), 15.4% over the past three years (grade of D) and 7.2% per year over the past five years (grade of C).

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