RAFE vs SCHD
PIMCO RAFI ESG US ETF vs Schwab US Dividend Equity ETF
Which is better, RAFE or SCHD?
Each has led over a different period.
SCHD has a lower expense ratio. RAFE led over 3Y and 5Y, SCHD over 1Y and the full window. RAFE is less concentrated, with 28.4% of the fund in its ten largest positions against 41.8%.
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 | RAFE | SCHD |
|---|---|---|
| Expense Ratio | 0.29% | 0.06%Best |
| AUM | $174M | $119.9B |
| Dividend Yield | 1.45% | 2.96% |
| Holdings | 591 | 204 |
| YTD Return | +23.97% | +33.09%Best |
| 1Y Return | +27.12% | +37.17%Best |
| 3Y Return (annualized) | +22.47%Best | +20.32% |
| 5Y Return (annualized) | +11.72%Best | +10.36% |
| Volatility (annualized) | 16.4%Best | 17.1% |
| Max Drawdown | -35.7% | -33.4%Best |
| $10,000 over 5 years | $17,404Best | $16,370 |
| Top 10 Weight | 28.4%Best | 41.8% |
| Fund Family | PIMCO (US) | Charles Schwab Asset Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Dec 18, 2019 | Oct 20, 2011 |
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Nov 11, 2026 (6.9 years).
RAFE vs SCHD 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 6.9 years both funds cover.
RAFE vs SCHD Performance
PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US) and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year RAFE returned +27.12% while SCHD returned +37.17%. Year to date, RAFE is up 23.97% versus a gain of 33.09% for SCHD.
Over three years, RAFE compounded at +22.47% per year against +20.32% for SCHD; over five years the annualized figures are +11.72% and +10.36% respectively. Across the full 7-year window we track, SCHD has the edge at +12.66% annualized vs +12.62%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 17.1% compared with 16.4% 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 -35.7% for RAFE and -33.4% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.89. They usually move together, but the gap leaves some room for diversification.
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 1.45% against 2.96% for SCHD.
Holdings Overlap
19.5% of RAFE's money is in holdings SCHD also owns. 62.0% of SCHD's money is in holdings RAFE also owns.
The two portfolios partly overlap.
27 positions in common, counted across the 287 positions we hold weights for in RAFE and 98 in SCHD, against full books of 591 and 204.
What only one of them owns
Our book lists 70 positions for SCHD that do not appear in our book for RAFE (37.8% of the fund), and 253 for RAFE that do not appear in SCHD (79.3%).
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 RAFE | Weight in SCHD | Difference |
|---|---|---|---|
| UNHUnitedhealth Group Incorporated | 2.84% | 4.07% | 1.23% |
| PGProcter & Gamble Company | 1.93% | 4.36% | 2.43% |
| MRKMerck & Company Inc | 2.11% | 4.00% | 1.89% |
| VZVerizon Communic | 1.85% | 3.64% | 1.79% |
| QCOMQualcomm Inc. | 1.20% | 4.18% | 2.98% |
| TXNTexas Instrument Inc | 0.69% | 4.53% | 3.84% |
| ABTAbbot Laboratories | 1.02% | 3.84% | 2.82% |
| PEPPepsico Inc | 0.86% | 3.79% | 2.93% |
| AMGNAmgen Inc. | 0.69% | 3.96% | 3.27% |
| KOCoca Cola Co. | 0.34% | 4.28% | 3.94% |
62.0% of SCHD is already inside RAFE.
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, RAFE or SCHD?
RAFE has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option, by $23 a year on a $10,000 investment.
Which performed better, RAFE or SCHD?
Over the past year RAFE returned +27.12% vs +37.17% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.62% vs +12.66% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RAFE or SCHD?
SCHD has been the more volatile fund at 17.1% annualized versus 16.4% for RAFE. 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 0.89, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between RAFE and SCHD?
62.0% of SCHD's money is in holdings RAFE also owns. 62.0% of SCHD's is in holdings RAFE also owns. They hold 27 positions in common, counted across the 287 positions we hold weights for in RAFE and 98 in SCHD.
Which pays a higher dividend, RAFE or SCHD?
RAFE yields 1.45% while SCHD yields 2.96%, so SCHD currently pays the higher dividend yield.
Is SCHD better than RAFE?
SCHD has a lower expense ratio. RAFE led over 3Y and 5Y, SCHD over 1Y and the full window. RAFE is less concentrated, with 28.4% of the fund in its ten largest positions against 41.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.