MFEM ETF — Holdings & Analysis

The PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is an equity ETF with $0.14 billion in assets under management.

It aims to track the RAFI Dynamic Multi-Factor Emerging Markets Index, employing a multi-factor approach to select and weight emerging market equities. With an expense ratio of 0.50%, MFEM offers exposure to a diversified portfolio of 816 emerging market stocks, differentiating itself through its dynamic multi-factor strategy that seeks to enhance returns by capitalizing on factors like value, momentum, and quality. Past performance does not guarantee future results.

PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) ETF — Price, Holdings & Analysis

The PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is an equity ETF with $0.14 billion in assets under management. It aims to track the RAFI Dynamic Multi-Factor Emerging Markets Index, employing a multi-factor approach to select and weight emerging market equities. With an expense ratio of 0.50%, MFEM offers exposure to a diversified portfolio of 816 emerging market stocks, differentiating itself through its dynamic multi-factor strategy that seeks to enhance returns by capitalizing on factors like value, momentum, and quality. Past performance does not guarantee future results.

ETF Overview

The Fund seeks to track the investment results of the RAFI Dynamic Multi-Factor Emerging Markets Index.

MFEM seeks to replicate the performance of the RAFI Dynamic Multi-Factor Emerging Markets Index. This index employs a unique approach by using multiple factors, including value, momentum, and quality, to select and weight securities within the emerging markets equity universe. The ETF's holdings reflect this strategy, with significant allocations to companies like Hyundai Motor Co (3.04%), Samsung Electronics Co Ltd (1.97%), and Delta Electronics Inc (1.74%). The fund provides exposure to a broad range of emerging market countries, with China (25.9%), South Korea (21.4%), and Taiwan (16.1%) representing the largest geographic allocations. Sector-wise, MFEM is heavily weighted towards Financial Services (20.0%), Technology (19.1%), and Basic Materials (16.4%). This ETF is designed for investors seeking diversified exposure to emerging market equities through a factor-based investment approach, potentially offering enhanced returns compared to traditional market-cap weighted indices. Past performance does not guarantee future results.

Risk Metrics

MFEM, with its focus on emerging markets, carries inherent risks associated with these economies, including political instability, currency fluctuations, and regulatory changes. The ETF's country exposure is concentrated in China (25.9%), South Korea (21.4%), and Taiwan (16.1%), exposing it to specific risks within these regions. Sector concentration is also a factor, with approximately 20.0% allocated to Financial Services and 19.1% to Technology, making the fund susceptible to sector-specific downturns. The ETF's beta of 0.98 indicates that it generally moves in line with the broader market. The expense ratio of 0.50% will create a drag on performance over time. these may be worth researching factors when evaluating MFEM's risk profile. Past performance does not guarantee future results.

Expense Ratio

0.50%

What does MFEM hold?

Holding	Weight
Hyundai Motor Co (005380.KS)	3.04%
Samsung Electronics Co Ltd (005930.KS)	1.97%
Delta Electronics Inc (2308.TW)	1.74%
SK Hynix Inc (000660.KS)	1.63%
Hon Hai Precision Industry Co Ltd (2317.TW)	1.61%
Korea Electric Power Corp (015760.KS)	1.46%
POSCO Holdings Inc (005490.KS)	1.20%
Petroleo Brasileiro SA Petrobras Participating Preferred (PETR4)	1.15%
Taiwan Semiconductor Manufacturing Co Ltd (2330.TW)	1.12%
Doosan Corp Ordinary Shares (000150.KS)	1.12%

How Is the Fund Allocated?

Sector	Weight
Financial Services	20.0%
Technology	19.1%
Basic Materials	16.4%
Industrials	10.5%
Consumer Cyclical	9.3%
Energy	7.2%
Communication Services	5.8%
Utilities	4.5%
Consumer Defensive	3.7%
Healthcare	1.8%
Real Estate	1.7%

Country	Weight
China	25.9%
South Korea	21.4%
Taiwan	16.1%
Brazil	7.0%
India	6.2%
South Africa	5.5%
Thailand	3.0%
Mexico	2.5%
Hong Kong	2.4%
Malaysia	1.4%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund (CORP) (Fixed Income) — 0.41% expense ratio
PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund (STPZ) (Fixed Income) — 0.20% expense ratio
PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund (EMNT) (Fixed Income) — 0.36% expense ratio

Risk Metrics

Beta: 0.98

Questions & Answers

What is MFEM and what does it track?

The PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is an exchange-traded fund that aims to track the investment results of the RAFI Dynamic Multi-Factor Emerging Markets Index.

This index uses a multi-factor approach, considering value, momentum, and quality factors, to select and weight companies within the emerging markets equity universe.

What is the expense ratio for MFEM?

The expense ratio for MFEM is 0.50%. This means that for every $10,000 invested in the fund, investors will pay $50 in annual fees to cover the fund's operating expenses.

While this is a cost to consider, it is important to weigh it against the potential benefits of the fund's investment strategy and diversification.

What are the top holdings in MFEM?

As of 2026-03-15, the top holdings in MFEM are Hyundai Motor Co (3.04%), Samsung Electronics Co Ltd (1.97%), and Delta Electronics Inc (1.74%). Other significant holdings include SK Hynix Inc (1.63%) and Hon Hai Precision Industry Co Ltd (1.61%).

These top holdings reflect the fund's focus on large-cap companies within the emerging markets, particularly in South Korea and Taiwan.

Is MFEM a good long-term investment?

Whether MFEM is a suitable long-term investment depends on an individual investor's risk tolerance, investment goals, and time horizon. MFEM offers exposure to emerging market equities, which can provide growth potential but also carry higher volatility compared to developed markets.

The fund's multi-factor strategy aims to enhance returns, but there is no guarantee of outperformance.

How does MFEM compare to similar ETFs?

MFEM distinguishes itself from other emerging market ETFs through its RAFI Dynamic Multi-Factor Index tracking. While many ETFs track standard market-cap weighted indices like the MSCI Emerging Markets Index, MFEM employs a multi-factor approach. MFEM's expense ratio is 0.50%.

The AUM is $0.14B, which may be smaller than some of the more established emerging market ETFs.

Does MFEM pay dividends?

As of 2026-03-15, the PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) has a dividend yield of 0.00%. This indicates that the fund is not currently distributing any dividend income to its shareholders.

Investors seeking current income may want to consider other ETFs with a higher dividend yield. However, MFEM's primary focus is on capital appreciation through its multi-factor investment strategy.