RAFE vs SPY
RAFE vs SPY
PIMCO RAFI ESG US ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. RAFE delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | RAFE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.09% | |
| AUM | $165M | $789.1B | |
| Dividend Yield | 1.51% | 1.01% | |
| Holdings | 285 | 505 | |
| YTD Return | +18.49% | +13.28% | |
| 1Y Return | +32.76% | +23.94% | |
| 3Y Return (annualized) | +19.43% | +21.07% | |
| 5Y Return (annualized) | +11.92% | +13.27% | |
| Volatility (annualized) | 16.7% | 15.3% | |
| Max Drawdown | -35.7% | -56.5% | |
| Fund Family | PIMCO (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Dec 18, 2019 | Jan 22, 1993 |
RAFE vs SPY Performance
PIMCO RAFI ESG US ETF (RAFE) is a ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year RAFE returned +32.76% while SPY returned +23.94%. Year to date, RAFE is up 18.49% versus a gain of 13.28% for SPY.
Over three years, RAFE compounded at +19.43% per year against +21.07% for SPY; over five years the annualized figures are +11.92% and +13.27% respectively. Across the full 7-year window we track, RAFE has the edge at +12.39% annualized vs +8.84%. 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 15.3% for SPY. 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 -56.5% for SPY. 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
RAFE charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, RAFE currently yields 1.51% against 1.01% for SPY.
Holdings Overlap
RAFE and SPY share 230 holdings out of 552 unique holdings combined, representing a 43.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in RAFE | Weight in SPY | Difference |
|---|---|---|---|
| AAPL | 5.43% | 7.09% | 1.66% |
| NVDA | 1.41% | 7.31% | 5.90% |
| MSFT | 3.94% | 4.43% | 0.49% |
| JNJ | Pro | Pro | Pro |
| UNH | Pro | Pro | Pro |
| JPM | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| MRK | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
See all 10 holdings RAFE shares with SPY 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 SPY?
RAFE has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, RAFE or SPY?
Over the past year RAFE returned +32.76% vs +23.94% for SPY, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.39% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, RAFE or SPY?
RAFE has been the more volatile fund at 16.7% annualized versus 15.3% for SPY. Worst drawdown: RAFE -35.7% vs SPY -56.5%.
Should I hold both RAFE and SPY?
RAFE and SPY 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 RAFE and SPY?
RAFE and SPY share 230 common holdings with a 43.9% weight overlap. Combined, they hold 552 unique securities.
Which pays a higher dividend, RAFE or SPY?
RAFE yields 1.51% while SPY yields 1.01%, so RAFE currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.