RAFE vs VTI
RAFE vs VTI
PIMCO RAFI ESG US ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. RAFE delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | RAFE | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.03% | |
| AUM | $165M | $663.5B | |
| Dividend Yield | 1.51% | 1.07% | |
| Holdings | 285 | 3,543 | |
| YTD Return | +18.52% | +13.92% | |
| 1Y Return | +32.78% | +24.07% | |
| 3Y Return (annualized) | +19.46% | +20.88% | |
| 5Y Return (annualized) | +12.05% | +12.47% | |
| Volatility (annualized) | 16.7% | 15.3% | |
| Max Drawdown | -35.7% | -56.6% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 18, 2019 | May 24, 2001 |
RAFE vs VTI Performance
PIMCO RAFI ESG US ETF (RAFE) is a ETF from PIMCO (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year RAFE returned +32.78% while VTI returned +24.07%. Year to date, RAFE is up 18.52% versus a gain of 13.92% for VTI.
Over three years, RAFE compounded at +19.46% per year against +20.88% for VTI; over five years the annualized figures are +12.05% and +12.47% respectively. Across the full 7-year window we track, RAFE has the edge at +12.40% annualized vs +8.13%. 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 VTI. 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 -56.6% for VTI. 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 VTI charges 0.03%. On a $10,000 position that is $29 vs $3 annually, a gap of $26 per year that compounds over a long holding period. On income, RAFE currently yields 1.51% against 1.07% for VTI.
Holdings Overlap
RAFE and VTI share 250 holdings out of 2812 unique holdings combined, representing a 40.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in RAFE | Weight in VTI | Difference |
|---|---|---|---|
| AAPL | 5.43% | 5.84% | 0.41% |
| MSFT | 3.94% | 3.81% | 0.13% |
| NVDA | 1.41% | 6.32% | 4.91% |
| JNJ | Pro | Pro | Pro |
| UNH | Pro | Pro | Pro |
| JPM | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| AMD | Pro | Pro | Pro |
| MRK | Pro | Pro | Pro |
| C | Pro | Pro | Pro |
See all 10 holdings RAFE shares with VTI 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 VTI?
RAFE has an expense ratio of 0.29% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, RAFE or VTI?
Over the past year RAFE returned +32.78% vs +24.07% for VTI, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.40% vs +8.13% for VTI. Past performance does not guarantee future results.
Which is riskier, RAFE or VTI?
RAFE has been the more volatile fund at 16.7% annualized versus 15.3% for VTI. Worst drawdown: RAFE -35.7% vs VTI -56.6%.
Should I hold both RAFE and VTI?
RAFE and VTI 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 VTI?
RAFE and VTI share 250 common holdings with a 40.5% weight overlap. Combined, they hold 2812 unique securities.
Which pays a higher dividend, RAFE or VTI?
RAFE yields 1.51% while VTI yields 1.07%, so RAFE currently pays the higher dividend yield.
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