- Sector
- Financial Services
- Industry
- Asset Management - Global
- Address
- 650 Newport Center Drive Newport Beach CA United States of America 92660
- IPO Date
- Sep 7, 2017
- Business
- PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is an exchange-traded fund that seeks to track the investment results, before fees and expenses, of the RAFI Dynamic Multi-Factor Emerging Markets Index. The fund employs a smart beta strategy providing dynamically weighted exposure to emerging markets equities selected and weighted based on multiple factors including value, quality, low volatility, momentum, and size; it invests at least 80% of its assets in securities of the index or instruments with similar economic characteristics, with top holdings such as MediaTek Inc., Hon Hai Precision Industry Co., Ltd., Petrobras, Ping An Insurance, and Vale S.A. across sectors like technology, financials, energy, and materials in regions including Asia, Latin America, the Middle East, and Africa. MFEM, listed on NYSE Arca, serves institutional and retail investors targeting diversified emerging markets equity with improved return potential through factor-based tilts and features quarterly distributions, an expense ratio of 0.50%, and approximately 760 holdings as of late 2025.
The ETF was launched on August 31, 2017 and is issued and managed by Pacific Investment Management Company LLC (PIMCO), a global investment management firm founded in 1971 and headquartered in Newport Beach, California. PIMCO, with over $2 trillion in assets under management, operates worldwide through 22 offices and offers a broad range of active fixed income, equity, and alternative strategies; MFEM forms part of its suite of RAFI-branded ETFs developed in strategic alliance with Research Affiliates, which provides the underlying index methodology.
In recent developments, PIMCO has expanded its private credit capabilities, raising over $2 billion in October 2024 for an asset-based private lending strategy and an additional $7 billion by December 2025 for asset-based finance initiatives, bringing total assets in such funds beyond $20 billion. The firm also announced mergers of certain closed-end funds in Canada in September 2024, set to complete by year-end subject to approvals, alongside tactical adjustments in emerging markets positioning within broader funds amid U.S. policy shifts under President Trump. These moves reflect PIMCO's ongoing strategic diversification into private assets and global opportunistic fixed income while maintaining MFEM's core focus on dynamic multi-factor emerging markets equity exposure.