IVV vs RAFE
iShares Core S&P 500 ETF vs PIMCO RAFI ESG US ETF
Which is better, IVV or RAFE?
Large Cap Blend against Large Cap Value.
IVV has a lower expense ratio. IVV led over 3Y, 5Y and the full window, RAFE over 1Y. The two have moved almost in lockstep, correlation 0.94. RAFE is less concentrated, with 28.9% of the fund in its ten largest positions against 37.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IVV | RAFE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.29% |
| AUM | $876.4B | $171M |
| Dividend Yield | 1.06% | 1.43% |
| Holdings | 508 | 295 |
| YTD Return | +11.03% | +18.33%Best |
| 1Y Return | +15.62% | +25.89%Best |
| 3Y Return (annualized) | +20.81%Best | +20.24% |
| 5Y Return (annualized) | +12.61%Best | +11.77% |
| Volatility (annualized) | 17.0% | 16.6%Best |
| Max Drawdown | -33.9%Best | -35.7% |
| $10,000 over 5 years | $18,109Best | $17,443 |
| Top 10 Weight | 37.8% | 28.9%Best |
| Fund Family | iShares by BlackRock (US) | PIMCO (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | May 15, 2000 | Dec 18, 2019 |
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Sep 16, 2026 (6.7 years).
IVV vs RAFE growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.7 years both funds cover.
IVV vs RAFE Performance
iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US) and PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US). Over the past year IVV returned +15.62% while RAFE returned +25.89%. Year to date, IVV is up 11.03% versus a gain of 18.33% for RAFE.
Over three years, IVV compounded at +20.81% per year against +20.24% for RAFE; over five years the annualized figures are +12.61% and +11.77% respectively. Across the full 7-year window we track, IVV has the edge at +14.82% annualized vs +12.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 16.6% for RAFE. 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 -33.9% for IVV and -35.7% for RAFE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.06% against 1.43% for RAFE.
Holdings Overlap
61.6% of IVV's money is in holdings RAFE also owns. 94.5% of RAFE's money is in holdings IVV also owns.
Most of RAFE is already inside IVV. Owning both mostly buys the same companies twice.
234 positions in common, counted across the 490 positions we hold weights for in IVV and 288 in RAFE, against full books of 508 and 295.
What only one of them owns
Our book lists 46 positions for RAFE that do not appear in our book for IVV (4.4% of the fund), and 251 for IVV that do not appear in RAFE (37.3%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IVV | Weight in RAFE | Difference |
|---|---|---|---|
| AAPLApple, Inc | 7.02% | 5.29% | 1.73% |
| MSFTMicrosoft Corp | 5.69% | 4.65% | 1.04% |
| NVDANvidia Corp | 8.07% | 1.34% | 6.73% |
| JNJJohnson & Johnson - Common | 0.97% | 3.35% | 2.38% |
| JPMJpmorgan Chase | 1.44% | 2.57% | 1.13% |
| UNHUnitedhealth Group Incorporated | 0.53% | 3.16% | 2.63% |
| AVGOBroadcom Inc | 2.65% | 0.49% | 2.16% |
| MRKMerck & Company Inc | 0.55% | 2.48% | 1.93% |
| VZVerizon Communic | 0.32% | 2.07% | 1.75% |
| PGProcter & Gamble Company | 0.51% | 1.83% | 1.32% |
94.5% of RAFE is already inside IVV.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $26 a year on a $10,000 investment.
Which performed better, IVV or RAFE?
Over the past year IVV returned +15.62% vs +25.89% for RAFE, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), IVV annualized +14.82% vs +12.15% for RAFE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IVV or RAFE?
IVV has been the more volatile fund at 17.0% annualized versus 16.6% for RAFE. Worst drawdown: IVV -33.9% 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. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between IVV and RAFE?
94.5% of RAFE's money is in holdings IVV also owns. 94.5% of RAFE's is in holdings IVV also owns. They hold 234 positions in common, counted across the 490 positions we hold weights for in IVV and 288 in RAFE.
Which pays a higher dividend, IVV or RAFE?
IVV yields 1.06% while RAFE yields 1.43%, so RAFE currently pays the higher dividend yield.
Is RAFE better than IVV?
IVV has a lower expense ratio. IVV led over 3Y, 5Y and the full window, RAFE over 1Y. The two have moved almost in lockstep, correlation 0.94. RAFE is less concentrated, with 28.9% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.