IVV vs RAFE
IVV vs RAFE
iShares Core S&P 500 ETF vs PIMCO RAFI ESG US ETF
Quick Verdict
IVV has a lower expense ratio. RAFE delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IVV | RAFE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.29% | |
| AUM | $865.2B | $165M | |
| Dividend Yield | 1.09% | 1.51% | |
| Holdings | 508 | 285 | |
| YTD Return | +13.80% | +19.12% | |
| 1Y Return | +23.70% | +33.09% | |
| 3Y Return (annualized) | +21.49% | +19.80% | |
| 5Y Return (annualized) | +13.43% | +11.89% | |
| Volatility (annualized) | 15.1% | 16.7% | |
| Max Drawdown | -56.5% | -35.7% | |
| Fund Family | iShares by BlackRock (US) | PIMCO (US) | |
| Category | Equity | Equity | |
| Inception | May 15, 2000 | Dec 18, 2019 |
IVV vs RAFE Performance
iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US) and PIMCO RAFI ESG US ETF (RAFE) is a ETF from PIMCO (US). Over the past year IVV returned +23.70% while RAFE returned +33.09%. Year to date, IVV is up 13.80% versus a gain of 19.12% for RAFE.
Over three years, IVV compounded at +21.49% per year against +19.80% for RAFE; over five years the annualized figures are +13.43% and +11.89% respectively. Across the full 7-year window we track, RAFE has the edge at +12.47% annualized vs +7.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RAFE has been the more volatile fund, with annualized monthly volatility of 16.7% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for IVV and -35.7% for RAFE. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IVV charges 0.03% per year while RAFE charges 0.29%. On a $10,000 position that is $3 vs $29 annually, a gap of $26 per year that compounds over a long holding period. On income, IVV currently yields 1.09% against 1.51% for RAFE.
Holdings Overlap
IVV and RAFE share 230 holdings out of 554 unique holdings combined, representing a 42.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IVV | Weight in RAFE | Difference |
|---|---|---|---|
| AAPL | 7.44% | 5.43% | 2.01% |
| NVDA | 7.76% | 1.41% | 6.35% |
| MSFT | 4.57% | 3.94% | 0.63% |
| JNJ | Pro | Pro | Pro |
| UNH | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| JPM:US | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| MRK | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
See all 10 holdings IVV shares with RAFE Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, IVV or RAFE?
IVV has an expense ratio of 0.03% while RAFE charges 0.29%. IVV is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, IVV or RAFE?
Over the past year IVV returned +23.70% vs +33.09% for RAFE, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), IVV annualized +7.05% vs +12.47% for RAFE. Past performance does not guarantee future results.
Which is riskier, IVV or RAFE?
RAFE has been the more volatile fund at 16.7% annualized versus 15.1% for IVV. Worst drawdown: IVV -56.5% vs RAFE -35.7%.
Should I hold both IVV and RAFE?
IVV and RAFE have a monthly-return correlation of 0.94, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IVV and RAFE?
IVV and RAFE share 230 common holdings with a 42.9% weight overlap. Combined, they hold 554 unique securities.
Which pays a higher dividend, IVV or RAFE?
IVV yields 1.09% while RAFE yields 1.51%, so RAFE currently pays the higher dividend yield.
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