ETF Research Center

The PIMCO RAFI Dynamic Multi-Factor International Equity ETF is a smart beta strategy that seeks to track the investment results of the RAFI Dynamic Multi-Factor Developed Ex-U.S. Index, which provides dynamically-weighted exposure to multiple equity factors, including value, quality, low volatility, momentum and size.

FUND BASICS
Category	International Equities
Fund Sponsor	PIMCO
Website	www.pimcoetfs.com
Inception date	Aug 31, 2017
Assets (mns)	$40
Currency	USD
Expense ratio	39 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	1266
Wgt avg mkt cap (mns)	$41,848
Large cap (>$10bn)	66.3%
Mid cap ($2-10bn)	26.6%
Small cap (<$2bn)	7.0%
Developed mkts	99.7%
Emerging mkts	0.3%

TOP TEN HOLDINGS
Total	8.5 %
NESTLE SA-REG	1.4 %
ROCHE HOLDING AG-GENUSSCHEIN	1.2 %
GLAXOSMITHKLINE PLC	1.1 %
ZURICH FINANCIAL SERVICES AG	1.0 %
HITACHI LTD	0.7 %
SAP AG	0.7 %
ASML HOLDING NV	0.6 %
NOVO NORDISK A/S-B	0.6 %
TOYOTA MOTOR CORP	0.6 %
ASTRAZENECA PLC	0.6 %

TOP COUNTRY EXPOSURE
	JAPAN	25.5 %
	BRITAIN	15.1 %
	SWITZERLAND	7.9 %
	CANADA	7.5 %
	GERMANY	6.1 %
	AUSTRALIA	5.9 %
	FRANCE	5.9 %
	SWEDEN	3.7 %
	NETHERLANDS	3.6 %
	SPAIN	3.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
19.9%	19.9%	--	--	3.3%

Market Correlations
versus...	Beta	R-squared
S&P500	0.70	76%
MSCI EAFE	0.90	96%
MSCI Emg. Mkts.	0.63	79%

Technical Indicators
Recent close	$26.13
30d moving avg.	$26.07
Annualized volatility	11.2%
Short interest (ETF)	0.0%
Relative strength (RSI)	57

Liquidity measures
Avg. volume (thou.)	5
Turnover	0.3%
Bid/Ask (% of price)	0.17%
ADV underlying (mns)	$38,718

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the PIMCO RAFI Dynamic Multi-Factor International Equity ETF based on the alternatives' overlap in portfolio holdings with MFDX. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

MFDX

Expense:

39 bp

ALTAR Score™:

6.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH MFDX
Ticker	Fund Name	Overlap¹ vs MFDX (%)	Expense ratio (bp)	Savings vs MFDX (bp)	ALTAR Score™ (%)	ALTAR vs MFDX (%)
IDEV	iShares Core MSCI Int'l Developed Markets	57.0	5	34	6.9	+0.8
IEFA	iShares Core MSCI EAFE	56.8	7	32	6.9	+0.8
EFA	iShares MSCI EAFE	55.7	31	8	6.7	+0.6
SCHF	Schwab International Equity	55.5	6	33	7.1	+1.0
SPDW	SPDR Portfolio World ex-US	55.5	4	35	6.9	+0.8
PBDM	Invesco PureBeta FTSE Developed ex-North America	54.9	7	32	7.3	+1.2
DBEF	Xtrackers MSCI EAFE Hedged	54.7	35	4	6.6	+0.5
VEA	Vanguard Europe Pacific	54.2	5	34	7.1	+1.0
EFAX	SPDR MSCI EAFE Fossil Fuel Free	53.5	20	19	6.8	+0.7
HFXI	IQ 50 Percent Hedged FTSE Int'l	53.2	20	19	7.0	+0.9
GSIE	Goldman Sachs ActiveBeta Int'l Equity	51.2	25	14	6.4	+0.3
FNDF	Schwab Fundamental Intl Large Cap	50.4	25	14	7.5	+1.4
PXF	Invesco FTSE-RAFI Developed ex-US	50.0	45	-6	7.9	+1.8
JHMD	John Hancock Multifactor Developed International	49.8	45	-6	7.0	+0.9
QEFA	SPDR MSCI EAFE Quality Mix	49.2	30	9	6.4	+0.3
DWM	WisdomTree DEFA Fund	49.1	48	-9	7.4	+1.4
PDEV	Principal International Multi-Factor Core Index	48.2	25	14	6.5	+0.4
DDWM	WisdomTree Dynamic Currency Hedged Int'l Equity	47.7	35	4	7.6	+1.5
ESGD	iShares MSCI EAFE ESG Optimized	47.2	20	19	6.7	+0.6

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	PIMCO RAFI Dynamic Multi-Factor International Equity
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.2	%
Divided by: Fwd. P/BV	1.6	x
Less: Expense ratio	39	bp
Equals: ALTAR Score	6.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.67	CATEGORY AVERAGE	1.63

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.