RAFE vs VYM
RAFE vs VYM
PIMCO RAFI ESG US ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. RAFE delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | RAFE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $165M | $79.0B | |
| Dividend Yield | 1.51% | 2.86% | |
| Holdings | 285 | 568 | |
| YTD Return | +18.52% | +15.57% | |
| 1Y Return | +32.78% | +25.99% | |
| 3Y Return (annualized) | +19.46% | +18.02% | |
| 5Y Return (annualized) | +12.05% | +12.71% | |
| Volatility (annualized) | 16.7% | 14.6% | |
| Max Drawdown | -35.7% | -58.8% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 18, 2019 | Nov 10, 2006 |
RAFE vs VYM Performance
PIMCO RAFI ESG US ETF (RAFE) is a ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year RAFE returned +32.78% while VYM returned +25.99%. Year to date, RAFE is up 18.52% versus a gain of 15.57% for VYM.
Over three years, RAFE compounded at +19.46% per year against +18.02% for VYM; over five years the annualized figures are +12.05% and +12.71% respectively. Across the full 7-year window we track, RAFE has the edge at +12.40% annualized vs +7.07%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.96. 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 VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, RAFE currently yields 1.51% against 2.86% for VYM.
Holdings Overlap
RAFE and VYM share 133 holdings out of 704 unique holdings combined, representing a 40.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in RAFE | Weight in VYM | Difference |
|---|---|---|---|
| AVGO | 1.06% | 6.47% | 5.41% |
| JNJ | 3.24% | 2.62% | 0.62% |
| JPM | 2.41% | 3.36% | 0.95% |
| UNH | Pro | Pro | Pro |
| PG | Pro | Pro | Pro |
| MRK | Pro | Pro | Pro |
| CSCO | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
| C | Pro | Pro | Pro |
See all 10 holdings RAFE shares with VYM 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 VYM?
RAFE has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, RAFE or VYM?
Over the past year RAFE returned +32.78% vs +25.99% for VYM, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.40% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, RAFE or VYM?
RAFE has been the more volatile fund at 16.7% annualized versus 14.6% for VYM. Worst drawdown: RAFE -35.7% vs VYM -58.8%.
Should I hold both RAFE and VYM?
RAFE and VYM have a monthly-return correlation of 0.96, 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 VYM?
RAFE and VYM share 133 common holdings with a 40.0% weight overlap. Combined, they hold 704 unique securities.
Which pays a higher dividend, RAFE or VYM?
RAFE yields 1.51% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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