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Is AAM Transformers ETF (TRFM) a Strong ETF Right Now?
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A smart beta exchange traded fund, the AAM Transformers ETF (TRFM - Free Report) debuted on 07/11/2022, and offers broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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, and has been able to amass over $348.12 million, which makes it one of the average sized ETFs in the Technology ETFs. This particular fund, before fees and expenses, 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.
TRFM's 12-month trailing dividend yield is 0.13%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 55.2% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Utilities round out the top three.
When you look at individual holdings, Snowflake Inc (SNOW) accounts for about 0.95% of the fund's total assets, followed by Salesforce Inc (CRM) and Airbnb Inc (ABNB).
Its top 10 holdings account for approximately 8.47% of TRFM's total assets under management.
Performance and Risk
The ETF has added roughly 27.71% and is up roughly 23.77% so far this year and in the past one year (as of 10/08/2026), respectively. TRFM has traded between $44.40 and $63.17 during this last 52-week period.
The fund has a beta of 1.39 and standard deviation of 24.85% for the trailing three-year period. With about 309 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 $131.28 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $159.07 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?
A smart beta exchange traded fund, the AAM Transformers ETF (TRFM - Free Report) debuted on 07/11/2022, and offers broad exposure to the Technology ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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, and has been able to amass over $348.12 million, which makes it one of the average sized ETFs in the Technology ETFs. This particular fund, before fees and expenses, 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.
TRFM's 12-month trailing dividend yield is 0.13%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 55.2% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Utilities round out the top three.
When you look at individual holdings, Snowflake Inc (SNOW) accounts for about 0.95% of the fund's total assets, followed by Salesforce Inc (CRM) and Airbnb Inc (ABNB).
Its top 10 holdings account for approximately 8.47% of TRFM's total assets under management.
Performance and Risk
The ETF has added roughly 27.71% and is up roughly 23.77% so far this year and in the past one year (as of 10/08/2026), respectively. TRFM has traded between $44.40 and $63.17 during this last 52-week period.
The fund has a beta of 1.39 and standard deviation of 24.85% for the trailing three-year period. With about 309 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 $131.28 billion in assets, Vanguard Information Technology Index Fund ETF Shares has $159.07 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.