At a glance
MFEM charges 0.49% a year, above the 0.25% average of the 8 funds most like it (the 8th cheapest of 9). It has $149.9M in assets, the 9th largest of that group; it paid 2.33% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +20.5% with distributions reinvested (S&P 500: +11.5%), 2nd of those 9 funds; over three years it returned +21.3% a year. At its worst it fell 35.5% in the 2020 crash (S&P 500: 33.7%) and 29.6% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 24 months after the lows. Its ten largest positions make up 18.9% of the fund, out of 699 in all.
The short version
PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) tracks a rules-based index of about 700 emerging-market stocks. The stocks are chosen on company fundamentals and tilted toward value, low volatility, quality and momentum. Taiwan and South Korea made up nearly half the portfolio as of June 30, 2026. Its 0.49% expense ratio is about double the 0.25% average of similar funds, and with about $150 million in assets it is the smallest in its peer group.
Price history
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MFEM +20.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MFEM official prospectus, to Dec 31, 2025 | — | +25.72% | — | +6.20% | — | +5.67% |
| MFEM price data to Oct 27, 2026 | +19.4% | +20.5% | +21.3% | +7.5% | — | +7.2% |
- Over the year to Oct 27, 2026, MFEM returned +20.5%, 2nd of 9 among similar funds.
- Its 5-year annualized return was +7.5%.
- In the 2020 COVID crash it fell 35.5% and regained its old high 7.5 months after the low.
- Its worst full calendar year was 2022 (-19.5%); its best was 2025 (+25.3%).
- The deepest fall in its price history was 42.2% (Jan 26, 2018 to Mar 23, 2020), recovered by Dec 15, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +19.4% | — |
| 2025 | +25.3% | +25.72% |
| 2024 | +4.7% | +4.93% |
| 2023 | +15.1% | +14.34% |
| 2022 | -19.5% | -19.41% |
| 2021 | +10.8% | +11.12% |
| 2020 | +11.3% | +12.02% |
| 2019 | +15.3% | +14.99% |
| 2018 | -13.1% | -12.73% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 35.5% over that stretch · deepest drop along the way 35.5%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.9% over that stretch · deepest drop along the way 29.6%, back to its old high 23.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5600 | |
| 2025 | $0.6400 | -42.9% |
| 2024 | $1.1200 | +45.5% |
| 2023 | $0.7700 | -36.9% |
| 2022 | $1.2200 | -82.4% |
| 2021 | $6.9300 | +1406.5% |
| 2020 | $0.4600 | -23.3% |
| 2019 | $0.6000 | -10.4% |
| 2018 | $0.6700 |
What's inside
As of Jun 30, 2026, the fund held 699 securities; the ten largest made up 18.88% of assets.
| Holding | Weight | |
|---|---|---|
| ASE Technology Holding Co Ltd | 2.86% | |
| Samsung Electro-Mechanics Co Ltd | 2.38% | |
| Delta Electronics Inc | 2.35% | |
| Hyundai Motor Co | 2.18% | |
| SK hynix Inc | 1.97% | |
| MediaTek Inc | 1.64% | |
| Samsung Electronics Co Ltd | 1.56% | |
| Taiwan Semiconductor Manufacturing Co Ltd | 1.37% | |
| Yageo Corp | 1.34% | |
| Hon Hai Precision Industry Co Ltd | 1.24% | |
| Lenovo Group Ltd | 1.24% | |
| Elite Material Co Ltd | 1.15% | |
| Nan Ya Plastics Corp | 1.06% | |
| Petroleo Brasileiro SA - Petrobras Preferred stock | 1.05% | |
| Accton Technology Corp | 1.01% |
By country
Taiwan 27.44%South Korea 20.59%China 17.34%Cayman Islands 5.4%India 5.03%By asset type
Stocks 97.34%Preferred stock 2.04%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +12.49%, +8.22%, -5.75%.
How it works
MFEM aims to track the RAFI Dynamic Multi-Factor Emerging Markets Index, built by RAFI Indices, LLC. The index starts with stocks from countries it classes as emerging markets, which numbered 24 as of September 30, 2026. Most index funds size companies by stock-market value. This index ranks them by "fundamental weight" instead. That blends five-year averages of sales, operating cash flow, and dividends plus buybacks with the latest book value (assets minus debts). Companies in the top 86% of cumulative fundamental weight qualify.
From that pool, the index builds four factor portfolios. Value favors stocks that are cheap relative to their fundamentals. Low volatility favors steadier stocks. Quality favors high profits and low investment spending. Momentum favors recent winners. Each quarter the index starts from equal weights and shifts up to 15% toward or away from a factor, based on each factor's recent trend and a long-term reversal signal. Value, low volatility and quality are rebuilt each March and rebalanced in four staggered slices, one per quarter. Momentum is fully refreshed every quarter.
PIMCO runs the fund using representative sampling. It holds index stocks, and sometimes other instruments, in proportions that may differ from the index, so it may track the index less closely than a full copy would. It does not try to beat the index. Portfolio turnover was 56%, which means a fair amount of trading, and trading adds costs beyond the expense ratio.
What it really costs
- MFEM charges 0.49% a year, versus an average of 0.25% for the similar funds below (8th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $616 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MFEM | $50 | $157 | $274 | $616 |
In a retirement portfolio
It offers fundamentally weighted emerging-market stocks, but its deep drops, high cost compared with peers and small size make it better suited to a smaller slice than a core position.
MFEM could add emerging-market stocks to a portfolio, led by Taiwanese and South Korean companies such as ASE Technology and Samsung Electro-Mechanics. It launched in 2017, so it has no 2008 record. It fell 35.5% in the 2020 COVID crash and recovered by November 2020. In 2022 it dropped 29.6% and took until September 2024 to recover. Its worst calendar year was 2022, down about 19.4%. Its deepest fall, 42.2% from January 2018 to March 2020, was recovered in December 2020. Selling shares for spending during stretches like these would lock in losses.
It yielded 2.33% over the 12 months to October 27, 2026, paid quarterly. At 0.49% a year, it costs about $50 in the first year on $10,000 under the SEC's standard example, roughly double the 0.25% peer average. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a RAFI index that picks emerging-markets companies by sales, cash flow and payouts, then tilts toward value, quality, low volatility and momentum.
- Those comfortable with Taiwan (27%) and South Korea (21%) dominating, with ASE Technology and Samsung Electro-Mechanics the largest holdings as of June 30, 2026.
- Long-term holders wanting some income: it pays quarterly, and the yield over the past year was 2.33% as of October 27, 2026.
Look elsewhere if
- Cost-focused investors: its 0.49% yearly fee (expense ratio) is well above the 0.25% average of similar funds; iShares' IEMG charges 0.09%.
- Retirees who need stable balances: it fell 42.2% from January 2018 to March 2020 and needed about 24 months to regain its January 2022 peak.
- Those who prefer large funds: net assets were about $150 million as of June 30, 2026, versus about $10.3 billion for Schwab's FNDE.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| MFEM this fund | — | 0.49% | $149.9M | +20.5% | +21.3% |
| FNDE Schwab Fundamental Emerging Markets Equity … | 41% | 0.39% | $10.31B | +15.0% | +22.8% |
| EEM iShares MSCI Emerging Markets ETF | 35% | 0.72% | $31.21B | +12.7% | +20.3% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 33% | 0.25% | $24.92B | +27.3% | +24.6% |
| IEMG iShares Core MSCI Emerging Markets ETF | 33% | 0.09% | $160.90B | +11.7% | +19.8% |
| SCHE Schwab Emerging Markets Equity ETF | 32% | 0.11% | $13.00B | +4.4% | +16.7% |
| SPEM SPDR Portfolio Emerging Markets ETF | 31% | 0.07% | $17.31B | +5.0% | +16.8% |
| AVEM Avantis Emerging Markets Equity ETF | 30% | 0.33% | $28.05B | +14.1% | +21.5% |
Questions investors ask
Is MFEM a good ETF for retirement?
It may fit as a smaller, higher-risk slice rather than a core holding. MFEM holds about 700 emerging-market stocks and has swung widely. It fell 35.5% in the 2020 COVID crash and 29.6% in 2022, and it took until September 2024 to recover from the 2022 drop. Its trailing yield was 2.33% as of October 27, 2026, paid quarterly. Those drops matter for anyone who may need to sell shares during a downturn.
What's the difference between MFEM and FNDE?
Both weight emerging-market stocks by company fundamentals rather than market value, and about 41% of their holdings overlap. MFEM adds tilts toward value, low volatility, quality and momentum. FNDE, from Schwab, costs 0.39% against MFEM's 0.49%. It is also far larger, at about $10.3 billion against about $150 million. As of October 27, 2026, MFEM returned 20.5% over one year and 21.3% a year over three years. FNDE returned 15% and 22.8%.
Does MFEM pay dividends monthly?
No. MFEM pays dividends quarterly. Over the 12 months to October 27, 2026, it paid $0.63 per share, a trailing yield of 2.33%. The payments come from dividends paid by its emerging-market holdings. That means amounts can change from quarter to quarter as company profits change and as foreign currencies move against the US dollar. Investors who want monthly income may want to compare other funds.
What are MFEM's top holdings?
As of June 30, 2026, the largest positions were ASE Technology (2.9%), Samsung Electro-Mechanics (2.4%), Delta Electronics (2.3%), Hyundai Motor (2.2%) and SK hynix (2.0%). Taiwan Semiconductor was 1.4%. The top 10 made up just 18.9% of assets across 699 holdings, so no single stock dominates. By country, Taiwan was 27.4%, South Korea 20.6% and China 17.3%. India was 5.0% and Brazil 4.4%.
How has MFEM performed since launch?
From its August 2017 launch through December 31, 2025, MFEM returned 5.67% a year, according to its prospectus. Its five-year average was 6.2% a year, and it returned 25.72% in 2025. Results have been uneven: it lost 12.73% in 2018 and 19.41% in 2022. Based on prices as of October 27, 2026, it was up 19.4% year to date and 20.5% over one year. These returns already reflect the fund's 0.49% expense ratio.