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Is AAM Transformers ETF (TRFM) a Strong ETF Right Now?
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The AAM Transformers ETF (TRFM - Free Report) made its debut on 07/11/2022, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Advisors Asset Management. TRFM has been able to amass assets over $219.84 million, making it one of the average sized ETFs in the Technology ETFs. Before fees and expenses, this particular fund seeks to match the performance of the PENCE TRANSFORMERS INDEX .
The Pence Transformers Index is rules-based index that measures the performance of U.S.-listed common equity securities, including American Depositary Receipts for foreign securities, of companies poised to benefit from a significant disruption and transformation of consumer behaviour and technological innovation.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.49% for TRFM, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.13%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 56.7% of the portfolio. Industrials and Utilities round out the top three.
When you look at individual holdings, Ciena Corp (CIEN) accounts for about 0.95% of the fund's total assets, followed by Lumentum Holdings Inc (LITE) and Sandisk Corp/de (SNDK).
TRFM's top 10 holdings account for about 8.16% of its total assets under management.
Performance and Risk
Year-to-date, the AAM Transformers ETF has added about 31.93% so far, and is up roughly 57.7% over the last 12 months (as of 06/03/2026). TRFM has traded between $40.33 $62.86 in this past 52-week period.
TRFM has a beta of 1.40 and standard deviation of 24.21% for the trailing three-year period. With about 260 holdings, it effectively diversifies company-specific risk .
Alternatives
AAM Transformers ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $128.93 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $151.89 billion. XLK has an expense ratio of 0.08% and VGT changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is AAM Transformers ETF (TRFM) a Strong ETF Right Now?
The AAM Transformers ETF (TRFM - Free Report) made its debut on 07/11/2022, and is a smart beta exchange traded fund that provides broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Advisors Asset Management. TRFM has been able to amass assets over $219.84 million, making it one of the average sized ETFs in the Technology ETFs. Before fees and expenses, this particular fund seeks to match the performance of the PENCE TRANSFORMERS INDEX .
The Pence Transformers Index is rules-based index that measures the performance of U.S.-listed common equity securities, including American Depositary Receipts for foreign securities, of companies poised to benefit from a significant disruption and transformation of consumer behaviour and technological innovation.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.49% for TRFM, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.13%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 56.7% of the portfolio. Industrials and Utilities round out the top three.
When you look at individual holdings, Ciena Corp (CIEN) accounts for about 0.95% of the fund's total assets, followed by Lumentum Holdings Inc (LITE) and Sandisk Corp/de (SNDK).
TRFM's top 10 holdings account for about 8.16% of its total assets under management.
Performance and Risk
Year-to-date, the AAM Transformers ETF has added about 31.93% so far, and is up roughly 57.7% over the last 12 months (as of 06/03/2026). TRFM has traded between $40.33 $62.86 in this past 52-week period.
TRFM has a beta of 1.40 and standard deviation of 24.21% for the trailing three-year period. With about 260 holdings, it effectively diversifies company-specific risk .
Alternatives
AAM Transformers ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well.
State Street Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology Index Fund ETF Shares (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. State Street Technology Select Sector SPDR ETF has $128.93 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $151.89 billion. XLK has an expense ratio of 0.08% and VGT changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.