RAFE vs SCHD
RAFE vs SCHD
PIMCO RAFI ESG US ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. RAFE delivered stronger 1-year returns. RAFE offers more diversification with 279 holdings.
Side-by-Side Comparison
| Metric | RAFE | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.06% | |
| AUM | $165M | $103.7B | |
| Dividend Yield | 1.51% | 3.31% | |
| Holdings | 285 | 104 | |
| YTD Return | +18.49% | +23.31% | |
| 1Y Return | +32.76% | +30.42% | |
| 3Y Return (annualized) | +19.43% | +14.66% | |
| 5Y Return (annualized) | +11.92% | +9.59% | |
| Volatility (annualized) | 16.7% | 13.6% | |
| Max Drawdown | -35.7% | -33.4% | |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Dec 18, 2019 | Oct 20, 2011 |
RAFE vs SCHD Performance
PIMCO RAFI ESG US ETF (RAFE) is a ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year RAFE returned +32.76% while SCHD returned +30.42%. Year to date, RAFE is up 18.49% versus a gain of 23.31% for SCHD.
Over three years, RAFE compounded at +19.43% per year against +14.66% for SCHD; over five years the annualized figures are +11.92% and +9.59% respectively. Across the full 7-year window we track, RAFE has the edge at +12.39% annualized vs +11.34%. 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 13.6% for SCHD. 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 -35.7% for RAFE and -33.4% for SCHD. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
RAFE charges 0.29% per year while SCHD charges 0.06%. On a $10,000 position that is $29 vs $6 annually, a gap of $23 per year that compounds over a long holding period. On income, RAFE currently yields 1.51% against 3.31% for SCHD.
Holdings Overlap
RAFE and SCHD share 27 holdings out of 352 unique holdings combined, representing a 20.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in RAFE | Weight in SCHD | Difference |
|---|---|---|---|
| UNH | 3.32% | 4.54% | 1.22% |
| MRK | 2.18% | 4.32% | 2.14% |
| PG | 1.89% | 4.15% | 2.26% |
| VZ | Pro | Pro | Pro |
| ABT | Pro | Pro | Pro |
| HD | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| BMY | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
See all 10 holdings RAFE shares with SCHD 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, RAFE or SCHD?
RAFE has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, RAFE or SCHD?
Over the past year RAFE returned +32.76% vs +30.42% for SCHD, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.39% vs +11.34% for SCHD. Past performance does not guarantee future results.
Which is riskier, RAFE or SCHD?
RAFE has been the more volatile fund at 16.7% annualized versus 13.6% for SCHD. Worst drawdown: RAFE -35.7% vs SCHD -33.4%.
Should I hold both RAFE and SCHD?
RAFE and SCHD have a monthly-return correlation of 0.90, 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 RAFE and SCHD?
RAFE and SCHD share 27 common holdings with a 20.6% weight overlap. Combined, they hold 352 unique securities.
Which pays a higher dividend, RAFE or SCHD?
RAFE yields 1.51% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.
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