RAFE vs VTI
PIMCO RAFI ESG US ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, RAFE or VTI?
Large Cap Value against Large Cap Blend.
VTI has a lower expense ratio. RAFE led over 1Y and 5Y, VTI over 3Y 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 33.3%.
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 | VTI |
|---|---|---|
| Expense Ratio | 0.29% | 0.03%Best |
| AUM | $171M | $666.9B |
| Dividend Yield | 1.43% | 1.03% |
| Holdings | 295 | 3,543 |
| YTD Return | +18.33%Best | +11.06% |
| 1Y Return | +25.89%Best | +15.41% |
| 3Y Return (annualized) | +20.24% | +20.48%Best |
| 5Y Return (annualized) | +11.77%Best | +11.52% |
| Volatility (annualized) | 16.6%Best | 17.4% |
| Max Drawdown | -35.7% | -35.0%Best |
| $10,000 over 5 years | $17,443Best | $17,249 |
| Top 10 Weight | 28.9%Best | 33.3% |
| Fund Family | PIMCO (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Dec 18, 2019 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Sep 16, 2026 (6.7 years).
RAFE vs VTI 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 VTI Performance
PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year RAFE returned +25.89% while VTI returned +15.41%. Year to date, RAFE is up 18.33% versus a gain of 11.06% for VTI.
Over three years, RAFE compounded at +20.24% per year against +20.48% for VTI; over five years the annualized figures are +11.77% and +11.52% respectively. Across the full 7-year window we track, VTI has the edge at +14.16% annualized vs +12.15%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 17.4% 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 -35.0% for VTI. 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 VTI 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 1.03% for VTI.
Holdings Overlap
98.5% of RAFE's money is in holdings VTI also owns. 54.6% of VTI's money is in holdings RAFE also owns.
Most of RAFE is already inside VTI. Owning both mostly buys the same companies twice.
276 positions in common, counted across the 288 positions we hold weights for in RAFE and 3,463 in VTI, against full books of 295 and 3,543.
What only one of them owns
Our book lists 887 positions for VTI that do not appear in our book for RAFE (43.0% of the fund), and 4 for RAFE that do not appear in VTI (0.5%).
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 VTI | Difference |
|---|---|---|---|
| AAPLApple, Inc | 5.29% | 6.29% | 1.00% |
| MSFTMicrosoft Corp | 4.65% | 4.79% | 0.14% |
| NVDANvidia Corp | 1.34% | 6.40% | 5.06% |
| JNJJohnson & Johnson - Common | 3.35% | 0.86% | 2.49% |
| JPMJpmorgan Chase | 2.57% | 1.31% | 1.26% |
| UNHUnitedhealth Group Incorporated | 3.16% | 0.52% | 2.64% |
| AVGOBroadcom Inc | 0.49% | 2.56% | 2.07% |
| MRKMerck & Company Inc | 2.48% | 0.45% | 2.03% |
| VZVerizon Communic | 2.07% | 0.24% | 1.83% |
| PGProcter & Gamble Company | 1.83% | 0.47% | 1.36% |
98.5% of RAFE is already inside VTI.
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 VTI?
RAFE has an expense ratio of 0.29% while VTI charges 0.03%. VTI is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, RAFE or VTI?
Over the past year RAFE returned +25.89% vs +15.41% for VTI, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.15% vs +14.16% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RAFE or VTI?
VTI has been the more volatile fund at 17.4% annualized versus 16.6% for RAFE. Worst drawdown: RAFE -35.7% vs VTI -35.0%.
Should I hold both RAFE and VTI?
RAFE and VTI 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 VTI?
98.5% of RAFE's money is in holdings VTI also owns. 54.6% of VTI's is in holdings RAFE also owns. They hold 276 positions in common, counted across the 288 positions we hold weights for in RAFE and 3,463 in VTI.
Which pays a higher dividend, RAFE or VTI?
RAFE yields 1.43% while VTI yields 1.03%, so RAFE currently pays the higher dividend yield.
Is VTI better than RAFE?
VTI has a lower expense ratio. RAFE led over 1Y and 5Y, VTI over 3Y 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 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.