RAFE vs VXUS
PIMCO RAFI ESG US ETF vs Vanguard Total International Stock ETF
Which is better, RAFE or VXUS?
Large Cap Value against Large Cap Blend.
VXUS has a lower expense ratio. RAFE led over 1Y, 3Y, 5Y and the full window.
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 | VXUS |
|---|---|---|
| Expense Ratio | 0.29% | 0.05%Best |
| AUM | $171M | $158.1B |
| Dividend Yield | 1.43% | 2.51% |
| Holdings | 295 | 8,747 |
| YTD Return | +19.19%Best | +13.64% |
| 1Y Return | +26.41%Best | +20.82% |
| 3Y Return (annualized) | +20.51%Best | +19.58% |
| 5Y Return (annualized) | +12.07%Best | +9.14% |
| Volatility (annualized) | 16.6% | 16.4%Best |
| Max Drawdown | -35.7% | -35.1%Best |
| $10,000 over 5 years | $17,679Best | $15,485 |
| Fund Family | PIMCO (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | Dec 18, 2019 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Sep 17, 2026 (6.7 years).
RAFE vs VXUS 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 VXUS Performance
PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year RAFE returned +26.41% while VXUS returned +20.82%. Year to date, RAFE is up 19.19% versus a gain of 13.64% for VXUS.
Over three years, RAFE compounded at +20.51% per year against +19.58% for VXUS; over five years the annualized figures are +12.07% and +9.14% respectively. Across the full 7-year window we track, RAFE has the edge at +12.26% annualized vs +9.36%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
RAFE has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 16.4% for VXUS. 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 -35.1% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
RAFE charges 0.29% per year while VXUS charges 0.05%. On a $10,000 position that is $29 vs $5 annually, a gap of $24 per year that compounds over a long holding period. On income, RAFE currently yields 1.43% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 288 holdings in RAFE and 8,082 in VXUS, totalling 99.6% and 88.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 288 positions we hold weights for in RAFE and 8,082 in VXUS, against full books of 295 and 8,747.
You are not choosing between two funds in isolation.
Whichever of RAFE and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, RAFE or VXUS?
RAFE has an expense ratio of 0.29% while VXUS charges 0.05%. VXUS is the cheaper option, by $24 a year on a $10,000 investment.
Which performed better, RAFE or VXUS?
Over the past year RAFE returned +26.41% vs +20.82% for VXUS, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.26% vs +9.36% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RAFE or VXUS?
RAFE has been the more volatile fund at 16.6% annualized versus 16.4% for VXUS. Worst drawdown: RAFE -35.7% vs VXUS -35.1%.
Should I hold both RAFE and VXUS?
RAFE and VXUS have a monthly-return correlation of 0.88, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, RAFE or VXUS?
RAFE yields 1.43% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than RAFE?
VXUS has a lower expense ratio. RAFE led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.