MFDX Profile
The PIMCO RAFI Dynamic Multi-Factor International Equity ETF aims to provide investors with diversified exposure to international equities by focusing on a dynamic multi-factor investment strategy. Under normal market conditions, the fund invests at least 80% of its total assets, excluding collateral from securities lending, in the securities that make up the RAFI Dynamic Multi-Factor Developed Ex-U.S. Index. This index targets developed markets outside the United States and incorporates a multi-factor approach to identify and capitalize on equity opportunities.
The RAFI Dynamic Multi-Factor Developed Ex-U.S. Index utilizes a rules-based methodology to construct factor-based portfolios, aiming to capture excess returns through various investment factors such as value, quality, momentum, and low volatility. This approach is designed to enhance performance by selecting stocks that exhibit favorable characteristics across multiple investment factors, thus providing a robust and diversified exposure to international equity markets. The index construction methodology involves dynamic adjustments to factor exposures based on prevailing market conditions, which helps in adapting to changing investment environments.
Managed by PIMCO, a global leader in fixed income and multi-asset solutions, the ETF benefits from the firm’s expertise in quantitative and fundamental research. PIMCO’s investment process leverages extensive data analysis and factor research to build and maintain a portfolio that aligns with the index's multi-factor strategy. This includes selecting stocks with high value, strong quality metrics, favorable momentum, and lower volatility, aiming to deliver superior risk-adjusted returns compared to traditional benchmarks.
By focusing on developed markets outside the U.S., the ETF offers investors a way to gain exposure to a broad range of international equities that are selected based on a sophisticated multi-factor framework. The fund's approach aims to balance risk and return by integrating various investment factors into the selection process. This strategic emphasis on multi-factor investing helps the ETF align with PIMCO’s objective of delivering enhanced performance while managing risk effectively, catering to investors seeking diversified international equity exposure with a focus on dynamic factor-driven strategies.
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