MFEM vs. ACLO

Last updated Jun 24, 2026

MFEM (PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF) and ACLO (TCW AAA CLO ETF) are both exchange-traded funds - MFEM is a Emerging Markets Equities fund tracking the RAFI Dynamic Multi-Factor Emerging Market Index, while ACLO is a CLO fund actively managed by TCW. MFEM is passively managed, while ACLO is actively managed. Over the past year, MFEM returned 40.87% vs 5.27% for ACLO. At a correlation of -0.06, they often move in opposite directions. MFEM charges 0.49%/yr vs 0.20%/yr for ACLO.

Performance

MFEM vs. ACLO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) and TCW AAA CLO ETF (ACLO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MFEM achieves a 22.43% return, which is significantly higher than ACLO's 2.44% return.

MFEM

• 1D: -4.55%
• 1M: -0.67%
• YTD: 22.43%
• 6M: 23.23%
• 1Y: 40.87%
• 3Y*: 20.13%
• 5Y*: 7.53%
• 10Y*: —

ACLO

• 1D: 0.03%
• 1M: 0.44%
• YTD: 2.44%
• 6M: 2.55%
• 1Y: 5.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

MFEM vs. ACLO - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	22.43%	25.33%	-1.11%
ACLO TCW AAA CLO ETF	2.44%	5.32%	0.81%

Correlation

The correlation between MFEM and ACLO is -0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.09
Correlation (All Time) Calculated using the full available price history since Nov 18, 2024	-0.06

Return for Risk

MFEM vs. ACLO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MFEM

MFEM Risk / Return Rank: 63
MFEM Sharpe Ratio Rank: 62
MFEM Sortino Ratio Rank: 57
MFEM Omega Ratio Rank: 66
MFEM Calmar Ratio Rank: 68
MFEM Martin Ratio Rank: 65

ACLO

ACLO Risk / Return Rank: 99
ACLO Sharpe Ratio Rank: 99
ACLO Sortino Ratio Rank: 99
ACLO Omega Ratio Rank: 99
ACLO Calmar Ratio Rank: 99
ACLO Martin Ratio Rank: 99

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MFEM vs. ACLO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) and TCW AAA CLO ETF (ACLO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MFEM	ACLO	Difference
Sharpe ratio: Return per unit of total volatility	1.92	7.28	-5.36
Sortino ratio: Return per unit of downside risk	2.51	15.06	-12.54
Omega ratio: Gain probability vs. loss probability	1.37	3.42	-2.06
Calmar ratio: Return relative to maximum drawdown	3.19	19.77	-16.57
Martin ratio: Return relative to average drawdown	10.95	164.39	-153.44

MFEM vs. ACLO - Sharpe Ratio Comparison

The current MFEM Sharpe Ratio is 1.92, which is lower than the ACLO Sharpe Ratio of 7.28. The chart below compares the historical Sharpe Ratios of MFEM and ACLO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MFEM vs. ACLO - Drawdown Comparison

The maximum MFEM drawdown since its inception was -43.32%, which is greater than ACLO's maximum drawdown of -1.01%. Use the drawdown chart below to compare losses from any high point for MFEM and ACLO.

Drawdown Indicators

	MFEM	ACLO	Difference
Max Drawdown Largest peak-to-trough decline	-43.32%	-1.01%	-42.31%
Max Drawdown (1Y) Largest decline over 1 year	-12.86%	-0.27%	-12.59%
Max Drawdown (3Y) Largest decline over 3 years	-19.22%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.84%	—	—
Current Drawdown Current decline from peak	-7.95%	0.00%	-7.95%
Average Drawdown Average peak-to-trough decline	-11.45%	-0.04%	-11.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.74%	0.03%	+3.71%

Volatility

MFEM vs. ACLO - Volatility Comparison

PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) has a higher volatility of 11.67% compared to TCW AAA CLO ETF (ACLO) at 0.19%. This indicates that MFEM's price experiences larger fluctuations and is considered to be riskier than ACLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MFEM	ACLO	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.67%	0.19%	+11.48%
Volatility (6M) Calculated over the trailing 6-month period	19.63%	0.58%	+19.05%
Volatility (1Y) Calculated over the trailing 1-year period	21.40%	0.73%	+20.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.16%	1.07%	+16.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.63%	1.07%	+18.56%

MFEM vs. ACLO - Expense Ratio Comparison

MFEM has a 0.49% expense ratio, which is higher than ACLO's 0.20% expense ratio.

Dividends

MFEM vs. ACLO - Dividend Comparison

MFEM's dividend yield for the trailing twelve months is around 2.27%, less than ACLO's 4.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACLO TCW AAA CLO ETF	4.90%	4.87%	0.59%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	2.27%	2.77%	5.89%	4.01%	7.01%	29.96%	1.70%	2.37%	1.18%	0.21%

Frequently Asked Questions

Can I hold both MFEM and ACLO in my portfolio?

MFEM and ACLO have a correlation of -0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MFEM or ACLO?

MFEM has higher volatility (11.67%) compared to ACLO (0.19%). In terms of maximum drawdown, MFEM dropped -43.32% vs ACLO's -1.01%.

Which ETF is better, MFEM or ACLO?

On 1-year performance, MFEM leads with 40.87% vs 5.27% for ACLO. On fees, ACLO is cheaper at 0.20% per year. On volatility, ACLO has been the lower-risk option at 0.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MFEM or ACLO?

Over the 1-year period, MFEM has performed better with a 40.87% return vs 5.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MFEM or ACLO?

ACLO is cheaper with a 0.20% expense ratio, compared with 0.49% for MFEM.

Which ETF pays a higher dividend yield, MFEM or ACLO?

ACLO has the higher dividend yield at 4.90%, compared with 2.27% for MFEM.

What is the main difference between MFEM and ACLO?

MFEM is categorized as Emerging Markets Equities, while ACLO is CLO. They also come from different issuers: PIMCO and TCW. Their fees differ too: 0.49% for MFEM and 0.20% for ACLO.

Which has better risk-adjusted returns?

ACLO currently has the higher Sharpe Ratio (7.28 vs 1.92), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.