RAFE vs SPY
PIMCO RAFI ESG US ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, RAFE or SPY?
Large Cap Value against Large Cap Blend.
SPY has a lower expense ratio. RAFE led over 1Y, SPY over 3Y, 5Y and the full window. 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 | RAFE | SPY |
|---|---|---|
| Expense Ratio | 0.29% | 0.09%Best |
| AUM | $171M | $804.7B |
| Dividend Yield | 1.43% | 0.98% |
| Holdings | 295 | 505 |
| YTD Return | +19.12%Best | +11.45% |
| 1Y Return | +26.46%Best | +15.87% |
| 3Y Return (annualized) | +20.53% | +20.93%Best |
| 5Y Return (annualized) | +11.89% | +12.59%Best |
| Volatility (annualized) | 16.6%Best | 16.9% |
| Max Drawdown | -35.7% | -34.1%Best |
| $10,000 over 5 years | $17,537 | $18,093Best |
| Top 10 Weight | 28.9%Best | 37.8% |
| Fund Family | PIMCO (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Dec 18, 2019 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Sep 15, 2026 (6.7 years).
RAFE vs SPY 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.
RAFE vs SPY Performance
PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year RAFE returned +26.46% while SPY returned +15.87%. Year to date, RAFE is up 19.12% versus a gain of 11.45% for SPY.
Over three years, RAFE compounded at +20.53% per year against +20.93% for SPY; over five years the annualized figures are +11.89% and +12.59% respectively. Across the full 7-year window we track, SPY has the edge at +14.86% annualized vs +12.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 16.9% 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 -35.7% for RAFE and -34.1% for SPY. 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
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 1.43% against 0.98% for SPY.
Holdings Overlap
96.2% of RAFE's money is in holdings SPY also owns. 62.3% of SPY's money is in holdings RAFE also owns.
Most of RAFE is already inside SPY. Owning both mostly buys the same companies twice.
242 positions in common, counted across the 288 positions we hold weights for in RAFE and 504 in SPY, against full books of 295 and 505.
What only one of them owns
Our book lists 259 positions for SPY that do not appear in our book for RAFE (37.4% of the fund), and 39 for RAFE that do not appear in SPY (3.0%).
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 SPY | Difference |
|---|---|---|---|
| AAPLApple, Inc | 5.29% | 7.26% | 1.97% |
| MSFTMicrosoft Corp | 4.65% | 5.66% | 1.01% |
| NVDANvidia Corp | 1.34% | 8.01% | 6.67% |
| JNJJohnson & Johnson - Common | 3.35% | 0.99% | 2.36% |
| JPMJpmorgan Chase | 2.57% | 1.45% | 1.12% |
| UNHUnitedhealth Group Incorporated | 3.16% | 0.55% | 2.61% |
| AVGOBroadcom Inc | 0.49% | 2.66% | 2.17% |
| MRKMerck & Company Inc | 2.48% | 0.56% | 1.92% |
| VZVerizon Communic | 2.07% | 0.32% | 1.75% |
| PGProcter & Gamble Company | 1.83% | 0.52% | 1.31% |
96.2% of RAFE is already inside SPY.
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 SPY?
RAFE has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option, by $20 a year on a $10,000 investment.
Which performed better, RAFE or SPY?
Over the past year RAFE returned +26.46% vs +15.87% for SPY, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.26% vs +14.86% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RAFE or SPY?
SPY has been the more volatile fund at 16.9% annualized versus 16.6% for RAFE. Worst drawdown: RAFE -35.7% vs SPY -34.1%.
Should I hold both RAFE and SPY?
RAFE and SPY 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 RAFE and SPY?
96.2% of RAFE's money is in holdings SPY also owns. 62.3% of SPY's is in holdings RAFE also owns. They hold 242 positions in common, counted across the 288 positions we hold weights for in RAFE and 504 in SPY.
Which pays a higher dividend, RAFE or SPY?
RAFE yields 1.43% while SPY yields 0.98%, so RAFE currently pays the higher dividend yield.
Is SPY better than RAFE?
SPY has a lower expense ratio. RAFE led over 1Y, SPY over 3Y, 5Y and the full window. 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.