At a glance
RWLC charges 0.32% a year, the same as the average of the 7 funds most like it (the 5th cheapest of 8). It has $97.1M in assets, the 8th largest of that group; it paid 12.56% of its price in distributions over the past 12 months, annual. Over the past year it returned +16.6% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +27.1% a year. At its worst it fell 20.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 15 months after the low. Its ten largest positions make up 40.9% of the fund, out of 101 in all.
The short version
Rayliant NxtGen Multifactor US Equity ETF (RWLC) is an actively managed fund. It uses machine-learning models, checked by human managers, to pick and weight about 100 US stocks, mostly mid- and large-sized companies. Unlike an index fund, it trades heavily: its prospectus lists a 318% portfolio turnover rate. As of June 30, 2026, it leaned toward technology, with Apple and Nvidia as its largest holdings. Its 0.32% expense ratio matches the average of similar funds.
Price history
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RWLC +16.6% 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 | |
|---|---|---|---|---|---|---|
| RWLC official prospectus, to Dec 31, 2025 | — | +20.12% | — | — | — | +11.99% |
| S&P 500 Total Return Index (reflects reinvestment of dividends and no deduction for fees, expenses or taxes) index, same period | — | +17.88% | — | — | — | +11.34% |
| S&P 500 Index (reflects no deduction for fees, expenses or taxes (except foreign withholding taxes)) index, same period | — | +17.43% | — | — | — | +10.82% |
| MSCI World Index (Net) (USD) (reflects no deduction for fees, expenses or taxes (except foreign withholding taxes)) index, same period | — | +21.09% | — | — | — | +10.22% |
| RWLC price data to Oct 27, 2026 | +17.0% | +16.6% | +27.1% | — | — | +13.6% |
- Over the year to Oct 27, 2026, RWLC returned +16.6%, 1st of 8 among similar funds.
- Its worst full calendar year was 2022 (-12.4%); its best was 2024 (+28.6%).
- The deepest fall in its price history was 21% (Dec 27, 2021 to Sep 30, 2022), recovered by Jan 10, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +17.0% | — |
| 2025 | +20.1% | +20.12% |
| 2024 | +28.6% | +28.03% |
| 2023 | +14.4% | +15.46% |
| 2022 | -12.4% | -12.67% |
| 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 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 19.9% over that stretch · deepest drop along the way 20.1%, back to its old high 14.6 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $4.8800 | +1474.2% |
| 2024 | $0.3100 | -24.4% |
| 2023 | $0.4100 | +32.3% |
| 2022 | $0.3100 |
What's inside
As of Jun 30, 2026, the fund held 101 securities; the ten largest made up 40.94% of assets.
| Holding | Weight | |
|---|---|---|
| APPLE INC. | 8.43% | |
| NVIDIA CORPORATION | 6.29% | |
| MICRON TECHNOLOGY, INC. | 4.46% | |
| LAM RESEARCH CORPORATION | 4.15% | |
| ALPHABET INC. | 4.04% | |
| ALPHABET INC. | 3.59% | |
| WESTERN DIGITAL CORPORATION | 2.77% | |
| MICROSOFT CORPORATION | 2.53% | |
| MASTERCARD INCORPORATED | 2.45% | |
| AMAZON.COM, INC. | 2.24% | |
| Altria Group, Inc. | 1.99% | |
| GILEAD SCIENCES, INC. | 1.79% | |
| GE VERNOVA INC. | 1.74% | |
| ELI LILLY AND COMPANY | 1.63% | |
| The Bank of New York Mellon Corporation | 1.57% |
By country
United States 99.31%Canada 0%By asset type
Stocks 99.31%By sector
Sectors of the companies held, for the 87% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.13%, +6.18%, +9.88%.
How it works
RWLC does not track an index. Its adviser, Rayliant, must normally keep at least 80% of net assets in stocks of US companies. These are mainly common stocks and depositary receipts (certificates that represent shares of a company). The fund may also own preferred stock, REITs (real estate investment trusts) and other funds. It can buy companies of any size but focuses on mid and large caps. A company counts as American if it meets any one test, such as being based in the US or earning at least 50% of its revenue there.
Rayliant's computer models, which use machine learning, sort through large amounts of data. That includes purchased data and alternative sources such as public websites, looked at over periods from months to years. Stocks the models expect to deliver higher risk-adjusted returns (more return for each unit of risk) get more weight. Stocks with weaker prospects get less. The portfolio team can change weights or trades based on news, how easily a stock trades, or its own research.
The prospectus gives no fixed rebalancing schedule, and the fund trades often. A 318% turnover rate means it replaced roughly the value of its whole portfolio three times over in a year. Trading costs from that turnover are not included in the expense ratio. As of June 30, 2026, it held 101 stocks, and the top ten made up 40.9% of assets. It used no derivatives and no leverage.
What it really costs
- RWLC charges 0.32% a year, versus an average of 0.32% for the similar funds below (5th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $33 in the first year and $406 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| RWLC | $33 | $103 | $180 | $406 |
In a retirement portfolio
It is a single manager's machine-learning stock-picking strategy in a small, tech-heavy fund with less than five years of history, so it fits best alongside a broad core holding.
RWLC could add a model-driven tilt to the US stock part of a portfolio, but its record is short. It launched in December 2021, so it was not around for the 2008 or 2020 crashes. Its deepest drop was 21%, from December 27, 2021, to September 30, 2022. It took 15.3 months to recover. Its worst calendar year was 2022, a 12.67% loss. A retiree who sold shares in late 2022 would have locked in that drop. The fund pays once a year. Its trailing yield was 12.56% as of October 27, 2026, but that came from a single payout that may not repeat. Funds that trade a lot can pay out large capital gains, which are taxable in regular accounts. In the SEC's standard example, $10,000 invested costs $33 in the first year and $406 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want an active, machine-learning approach to US large and mid caps at 0.32% a year, in line with similar funds.
- Those comfortable with a tech-heavy mix: technology was 34.8% of the fund and Apple and Nvidia together about 14.7% as of June 30, 2026.
- Long-term holders who can sit through drops like the 21% fall in 2022, which took 15.3 months to recover.
Look elsewhere if
- Those who prefer a low-cost index fund: IWL charges 0.15% and QLC 0.25%, both less than RWLC's 0.32%.
- Income seekers who need steady payments: RWLC pays once a year, and its 12.56% trailing yield came from one payout that may not repeat.
- Investors wary of small funds: net assets were about $97 million as of June 30, 2026, the smallest among eight similar funds.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| RWLC this fund | — | 0.32% | $97.1M | +16.6% | +27.1% |
| QLC FlexShares US Quality Large Cap Index Fund | 49% | 0.25% | $1.01B | +15.1% | +27.0% |
| IWL iShares Russell Top 200 ETF | 46% | 0.15% | $2.19B | +12.5% | +25.5% |
| QQMG Invesco ESG NASDAQ 100 ETF | 44% | 0.2% | $200.0M | +16.4% | +29.5% |
| AFLG First Trust Active Factor Large Cap ETF | 44% | 0.55% | $761.1M | +14.8% | +24.7% |
| QQQ Invesco QQQ Trust Series I | 43% | 0.2% | $490.10B | +8.8% | +24.0% |
| VSLU Applied Finance Valuation Large Cap ETF | 42% | 0.49% | $545.8M | +12.5% | +24.8% |
| FLCG Federated Hermes MDT Large Cap Growth ETF | 38% | 0.39% | $617.3M | +4.1% | — |
Questions investors ask
How does RWLC pick its stocks?
RWLC does not track an index. Rayliant picks US stocks with computer models that use machine learning to favor shares with higher expected returns for the risk taken. Its portfolio team can adjust the weights. The fund trades heavily. Turnover, a measure of how much of the portfolio is replaced in a year, was 318% per the prospectus filed June 9, 2026. The expense ratio, the annual fee, is 0.32%. That is about $33 in the first year on $10,000 under the SEC's standard example, and trading costs come on top.
What are RWLC's top holdings?
As of June 30, 2026, Apple was the largest holding at 8.4% of assets. Next came Nvidia at 6.3%, Micron Technology at 4.5% and Lam Research at 4.2%. Alphabet's Class A and Class C shares held 4.0% and 3.6%. Western Digital, Microsoft, Mastercard and Amazon completed the top 10, which together made up 40.94% of assets. The fund held 101 positions in all. Technology was the largest sector at 34.8%, so results lean heavily on tech stocks.
Has RWLC beaten the S&P 500?
Yes, by a modest margin. As of December 31, 2025, RWLC returned 11.99% a year since its December 16, 2021 launch. The S&P 500 returned 11.34% a year with dividends reinvested. In 2025 the fund gained 20.12%, against 17.88% for the index. It also had rough stretches: a 12.67% loss in 2022 and a 12.74% drop in the quarter that ended June 30, 2022. A record that starts in late 2021 is short for judging whether the models will keep adding value.
RWLC vs QLC: what's the difference?
QLC, the FlexShares US Quality Large Cap Index Fund, is the closest match by holdings, with a 49% overlap. The main difference is approach: QLC follows an index, while machine-learning models actively run RWLC. QLC costs 0.25% a year versus 0.32%. It is also far larger, at about $1.01 billion against $97.1 million in mid-2026 fund reports. As of October 27, 2026, RWLC returned 16.6% over one year and 27.1% a year over three years. QLC returned 15.1% and 27%.
Does RWLC pay dividends?
Yes, but only once a year. Over the 12 months through October 27, 2026, RWLC paid $4.88 per share, a trailing yield of 12.56%. That is unusually high for a stock fund and may not repeat. Funds that trade as heavily as this one can pay out realized capital gains. In a taxable account, those payouts are taxed even when reinvested. Investors who want steady monthly income may find dividend-focused funds a closer fit.