The RAUS ETF is a passive product designed to track the performance of the Research Affiliates market-cap-weighted US index. Rather than selecting constituents based on share price movements alone, it first looks at fundamental measures of business activity and then applies market-cap weighting.

It suits long-term investors who want diversified exposure to US large- and mid-cap stocks while also considering selection criteria that differ from price-based indexes.

It is a passive (index-tracking) ETF managed by ETF Architect.

The product assesses a company's economic size using adjusted sales, adjusted cash flow, dividends and share buybacks, and book value and intangible assets. It then applies free-float market-cap weighting to the selected stocks to build its exposure to US large- and mid-cap stocks.

• Selection of constituents that reflects fundamental company measures
• A combination of market-cap weighting and a tendency toward low turnover

Assets under management (AUM) are $77.0M, and the expense ratio is 0.00% per year.

Because this is a newly listed product, trading volume and the bid-ask spread may change with market conditions, so it is advisable to check actual trading conditions.

The performance of the RAUS ETF is affected by the overall direction of the US stock market and by changes in the valuation of large- and mid-cap stocks. Because fundamental measures are factored into index selection, in environments where share price gains are concentrated in a few stocks, its relative performance may diverge from that of a conventional market-cap index.

The product's trading conditions may vary with market participants' interest, awareness of the underlying index, and comparisons of cost and liquidity with similar products. The gap between the bid and ask prices, and the difference between the trading price and net asset value, are factors to check each time you trade.

Its defining feature is the combination of fundamentals-based selection with market-cap weighting; trading conditions and relative performance versus conventional indexes are the main points to check.

In the comparison table, the FNDX ETF offers an approach that selects US large-cap stocks using fundamental measures, and the PRF ETF is a comparable option because it applies fundamentals-based weights to a broad range of US stocks. The FNDA ETF can serve as a reference for the small-cap segment, the JHMM ETF for a multifactor approach to mid-caps, and the RECS ETF for core equity management. However, the inclusion criteria, cost structures, and trading conditions of similarly classified products may differ, so rather than simply comparing performance, you should also check their investment scope and index methodology.

When evaluating the RAUS ETF, you should check how its index selection criteria differ from those of a conventional market-cap index, whether the product's trading conditions suit your own trading style, and how distributions and exchange rates will affect total return.

A decline in the US stock market, volatility in particular sectors, and exchange rate movements can affect the RAUS ETF's net asset value and trading price. As a passive product, it does not defensively adjust its weights according to market conditions, so you should understand this structure and the index inclusion criteria.

The RACWI US ETF (RACWI) applies fundamentals-based selection to US large- and mid-cap stocks and then builds its portfolio using market-cap weighting. For the RAUS ETF, investors should compare how its inclusion method differs from conventional market-cap indexes, along with its trading conditions and distribution policy, and then judge whether it fits their investment objectives.