RAFE vs VOO
PIMCO RAFI ESG US ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. RAFE delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | RAFE | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.03% | |
| AUM | $169M | $997.4B | |
| Dividend Yield | 1.48% | 1.08% | |
| Holdings | 295 | 509 | |
| YTD Return | +21.13% | +12.76% | |
| 1Y Return | +30.56% | +20.14% | |
| 3Y Return (annualized) | +21.32% | +21.69% | |
| 5Y Return (annualized) | +12.13% | +13.00% | |
| Volatility (annualized) | 16.7% | 14.1% | |
| Max Drawdown | -35.7% | -34.3% | |
| Fund Family | PIMCO (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 18, 2019 | Sep 7, 2010 |
RAFE vs VOO Performance
PIMCO RAFI ESG US ETF (RAFE) is a ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year RAFE returned +30.56% while VOO returned +20.14%. Year to date, RAFE is up 21.13% versus a gain of 12.76% for VOO.
Over three years, RAFE compounded at +21.32% per year against +21.69% for VOO; over five years the annualized figures are +12.13% and +13.00% respectively. Across the full 7-year window we track, VOO has the edge at +13.47% annualized vs +12.65%. 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 14.1% for VOO. 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 -34.3% for VOO. 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 VOO 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 1.48% against 1.08% for VOO.
Holdings Overlap
RAFE and VOO share 221 holdings out of 553 unique holdings combined, representing a 43.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, RAFE or VOO?
RAFE has an expense ratio of 0.29% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, RAFE or VOO?
Over the past year RAFE returned +30.56% vs +20.14% for VOO, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.65% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, RAFE or VOO?
RAFE has been the more volatile fund at 16.7% annualized versus 14.1% for VOO. Worst drawdown: RAFE -35.7% vs VOO -34.3%.
Should I hold both RAFE and VOO?
RAFE and VOO 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 VOO?
RAFE and VOO share 221 common holdings with a 43.0% weight overlap. Combined, they hold 553 unique securities.
Which pays a higher dividend, RAFE or VOO?
RAFE yields 1.48% while VOO yields 1.08%, so RAFE currently pays the higher dividend yield.
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