RAFE vs VOO
PIMCO RAFI ESG US ETF vs Vanguard S&P 500 ETF
Which is better, RAFE or VOO?
Large Cap Value against Large Cap Blend.
VOO has a lower expense ratio. RAFE led over 1Y, VOO 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 37.6%.
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 | VOO |
|---|---|---|
| Expense Ratio | 0.29% | 0.03%Best |
| AUM | $171M | $997.4B |
| Dividend Yield | 1.43% | 1.04% |
| Holdings | 295 | 509 |
| YTD Return | +19.19%Best | +12.25% |
| 1Y Return | +26.41%Best | +17.03% |
| 3Y Return (annualized) | +20.51% | +21.25%Best |
| 5Y Return (annualized) | +12.07% | +13.08%Best |
| Volatility (annualized) | 16.6%Best | 16.9% |
| Max Drawdown | -35.7% | -34.3%Best |
| $10,000 over 5 years | $17,679 | $18,490Best |
| Top 10 Weight | 28.9%Best | 37.6% |
| Fund Family | PIMCO (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Dec 18, 2019 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Sep 17, 2026 (6.7 years).
RAFE vs VOO 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 VOO Performance
PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year RAFE returned +26.41% while VOO returned +17.03%. Year to date, RAFE is up 19.19% versus a gain of 12.25% for VOO.
Over three years, RAFE compounded at +20.51% per year against +21.25% for VOO; over five years the annualized figures are +12.07% and +13.08% respectively. Across the full 7-year window we track, VOO has the edge at +14.94% annualized vs +12.26%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO 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 -34.3% for VOO. 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 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 1.43% against 1.04% for VOO.
Holdings Overlap
95.1% of RAFE's money is in holdings VOO also owns. 60.7% of VOO's money is in holdings RAFE also owns.
Most of RAFE is already inside VOO. Owning both mostly buys the same companies twice.
235 positions in common, counted across the 288 positions we hold weights for in RAFE and 494 in VOO, against full books of 295 and 509.
What only one of them owns
Our book lists 256 positions for VOO that do not appear in our book for RAFE (38.6% of the fund), and 45 for RAFE that do not appear in VOO (3.9%).
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 VOO | Difference |
|---|---|---|---|
| AAPLApple, Inc | 5.29% | 7.05% | 1.76% |
| MSFTMicrosoft Corp | 4.65% | 5.36% | 0.71% |
| NVDANvidia Corp | 1.34% | 7.55% | 6.21% |
| JNJJohnson & Johnson - Common | 3.35% | 0.96% | 2.39% |
| JPMJpmorgan Chase | 2.57% | 1.46% | 1.11% |
| UNHUnitedhealth Group Incorporated | 3.16% | 0.58% | 2.58% |
| AVGOBroadcom Inc | 0.49% | 2.86% | 2.37% |
| MRKMerck & Company Inc | 2.48% | 0.50% | 1.98% |
| VZVerizon Communic | 2.07% | 0.30% | 1.77% |
| PGProcter & Gamble Company | 1.83% | 0.52% | 1.31% |
95.1% of RAFE is already inside VOO.
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 VOO?
RAFE has an expense ratio of 0.29% while VOO charges 0.03%. VOO is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, RAFE or VOO?
Over the past year RAFE returned +26.41% vs +17.03% for VOO, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.26% vs +14.94% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RAFE or VOO?
VOO has been the more volatile fund at 16.9% annualized versus 16.6% for RAFE. 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. 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 VOO?
95.1% of RAFE's money is in holdings VOO also owns. 60.7% of VOO's is in holdings RAFE also owns. They hold 235 positions in common, counted across the 288 positions we hold weights for in RAFE and 494 in VOO.
Which pays a higher dividend, RAFE or VOO?
RAFE yields 1.43% while VOO yields 1.04%, so RAFE currently pays the higher dividend yield.
Is VOO better than RAFE?
VOO has a lower expense ratio. RAFE led over 1Y, VOO 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 37.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.