PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF MFUS is an interesting strategy, but it has some shortcomings. It only has modest exposure to the factors it targets and relies heavily on fundamental weighting, which hurts factor diversification and pushes this fund toward value territory. Additionally, its dynamic weighting strategy has not proven to be worth the turnover and factor concentration it invites. It earns a Morningstar Analyst Rating of Neutral.
Will MFUS outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable MFUS’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the MFUS management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of MFUS’s parent organization’s priorities and whether they’re in line with investors’ interests.