ETF Research Center

The PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF is a smart beta strategy that seeks to track the investment results of the RAFI Dynamic Multi-Factor U.S. Index. The fund is designed to provide investors with the benefits of dynamically-weighted exposure to multiple equity factors, including value, quality, low volatility.

FUND BASICS
Category	US Equities
Fund Sponsor	PIMCO
Website	www.pimcoetfs.com
Inception date	Aug 31, 2017
Assets (mns)	$129
Currency	USD
Expense ratio	29 bp
Distributions	Quarterly

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	863
Wgt avg mkt cap (mns)	$136,297
Large cap (>$10bn)	83.7%
Mid cap ($2-10bn)	14.2%
Small cap (<$2bn)	2.2%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	19.8 %
VERIZON COMMUNICATIONS INC	2.5 %
WAL-MART STORES INC	2.5 %
PROCTER & GAMBLE CO/THE	2.4 %
WALT DISNEY CO/THE	1.9 %
TARGET CORP	1.8 %
PEPSICO INC	1.8 %
COCA-COLA CO/THE	1.8 %
INTL BUSINESS MACHINES CORP	1.8 %
CVS CAREMARK CORP	1.7 %
AT&T INC	1.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	96.4 %
	BRITAIN	1.2 %
	IRELAND	0.9 %
	SWITZERLAND	0.5 %
	BERMUDA	0.2 %
	CANADA	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
23.8%	12.4%	--	--	10.6%

Market Correlations
versus...	Beta	R-squared
S&P500	0.90	96%
MSCI EAFE	0.90	72%
MSCI Emg. Mkts.	0.62	53%

Technical Indicators
Recent close	$30.67
30d moving avg.	$30.48
Annualized volatility	13.0%
Short interest (ETF)	0.1%
Relative strength (RSI)	63

Liquidity measures
Avg. volume (thou.)	6
Turnover	0.1%
Bid/Ask (% of price)	0.17%
ADV underlying (mns)	$116,567

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the PIMCO RAFI Dynamic Multi-Factor U.S. Equity ETF based on the alternatives' overlap in portfolio holdings with MFUS. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

MFUS

Expense:

29 bp

ALTAR Score™:

6.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH MFUS
Ticker	Fund Name	Overlap¹ vs MFUS (%)	Expense ratio (bp)	Savings vs MFUS (bp)	ALTAR Score™ (%)	ALTAR vs MFUS (%)
FNDB	Schwab Fundamental Broad Mkt	57.5	25	4	6.0	-0.3
FNDX	Schwab Fundamental Large Cap	56.6	25	4	6.0	-0.3
PRF	Invesco FTSE-RAFI U.S. 1000	55.6	39	-10	6.6	+0.3
DTD	WisdomTree Total Dividend	55.1	28	1	6.6	+0.3
MMTM	SPDR S&P1500 Momentum Tilt	54.3	12	17	5.4	-0.9
OMOM	Invesco Russell 1000 Momentum Factor ETF	53.8	19	10	5.3	-1.0
IYY	iShares DJ US Total Market	52.9	20	9	5.7	-0.6
SCHK	Schwab 1000 Index	52.8	5	24	5.9	-0.4
DYNF	BlackRock U.S. Equity Factor Rotation	52.6	30	-1	6.5	+0.2
JHML	John Hancock Multifactor Large Cap	52.6	34	-5	6.0	-0.3
QUS	SPDR MSCI USA Quality Mix	52.5	15	14	6.0	-0.3
IWB	iShares Russell 1000	52.5	15	14	5.7	-0.5
SPLG	SPDR Portfolio Large Cap	52.5	3	26	5.8	-0.5
VONE	Vanguard Russell 1000	52.4	12	17	5.8	-0.5
SPTM	SPDR Portfolio Total Stock Market	52.4	3	26	5.7	-0.6
VLU	SPDR S&P 1500 Value Tilt	52.2	12	17	7.4	+1.1
SCHX	Schwab U.S. Large-Cap	52.2	3	26	5.8	-0.5
SCHB	Schwab U.S. Broad Market	52.1	3	26	5.7	-0.6
VTI	Vanguard Total Market	52.0	3	26	5.7	-0.6
ITOT	iShares Core S&P Total US	52.0	3	26	5.6	-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 U.S. Equity
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	18.1	%
Divided by: Fwd. P/BV	2.8	x
Less: Expense ratio	29	bp
Equals: ALTAR Score	6.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.57	CATEGORY AVERAGE	1.56

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.