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Should You Invest in the AAM Transformers ETF (TRFM)?
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Launched on July 11, 2022, the AAM Transformers ETF (TRFM - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Advisors Asset Management. It has amassed assets over $281.93 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. TRFM seeks to match the performance of the PENCE TRANSFORMERS INDEX before fees and expenses.
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.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.49%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.14%.
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 54.2% of the portfolio. Industrials and Utilities round out the top three.
Looking at individual holdings, Snowflake Inc (SNOW) accounts for about 0.95% of total assets, followed by Salesforce Inc (CRM) and Airbnb Inc (ABNB).
The top 10 holdings account for about 8.47% of total assets under management.
Performance and Risk
The ETF has added about 23.06% so far this year and is up roughly 22.36% in the last one year (as of 09/29/2026). In that past 52-week period, it has traded between $44.402 and $63.17.
The ETF has a beta of 1.39 and standard deviation of 24.93% for the trailing three-year period. With about 309 holdings, it effectively diversifies company-specific risk.
Alternatives
AAM Transformers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, TRFM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that 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 $126.62 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $153.21 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.
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.
View the Zacks #1 Rank List
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Should You Invest in the AAM Transformers ETF (TRFM)?
Launched on July 11, 2022, the AAM Transformers ETF (TRFM - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Broad segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 3, placing it in top 19%.
Index Details
The fund is sponsored by Advisors Asset Management. It has amassed assets over $281.93 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Broad segment of the equity market. TRFM seeks to match the performance of the PENCE TRANSFORMERS INDEX before fees and expenses.
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.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.49%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.14%.
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 54.2% of the portfolio. Industrials and Utilities round out the top three.
Looking at individual holdings, Snowflake Inc (SNOW) accounts for about 0.95% of total assets, followed by Salesforce Inc (CRM) and Airbnb Inc (ABNB).The top 10 holdings account for about 8.47% of total assets under management.
Performance and Risk
The ETF has added about 23.06% so far this year and is up roughly 22.36% in the last one year (as of 09/29/2026). In that past 52-week period, it has traded between $44.402 and $63.17.
The ETF has a beta of 1.39 and standard deviation of 24.93% for the trailing three-year period. With about 309 holdings, it effectively diversifies company-specific risk.
Alternatives
AAM Transformers ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, TRFM is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that 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 $126.62 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $153.21 billion. XLK has an expense ratio of 0.08%, and VGT charges 0.09%.
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.