RAFE vs VYM
PIMCO RAFI ESG US ETF vs Vanguard High Dividend Yield ETF
Which is better, RAFE or VYM?
Nearly the same fund. VYM costs less.
VYM has a lower expense ratio. RAFE led over 1Y, 3Y and the full window, VYM over 5Y. The two have moved almost in lockstep, correlation 0.95. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 28.9%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.29% | 0.04%Best |
| AUM | $171M | $81.6B |
| Dividend Yield | 1.43% | 2.22% |
| Holdings | 295 | 613 |
| YTD Return | +19.19%Best | +12.29% |
| 1Y Return | +26.41%Best | +16.61% |
| 3Y Return (annualized) | +20.51%Best | +17.42% |
| 5Y Return (annualized) | +12.07% | +12.12%Best |
| Volatility (annualized) | 16.6% | 15.6%Best |
| Max Drawdown | -35.7%Tie | -35.7%Tie |
| $10,000 over 5 years | $17,679 | $17,718Best |
| Top 10 Weight | 28.9% | 26.1%Best |
| Fund Family | PIMCO (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Value |
| Inception | Dec 18, 2019 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Dec 20, 2019 to Sep 17, 2026 (6.7 years).
RAFE vs VYM 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 VYM Performance
PIMCO RAFI ESG US ETF (RAFE) is an ETF from PIMCO (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year RAFE returned +26.41% while VYM returned +16.61%. Year to date, RAFE is up 19.19% versus a gain of 12.29% for VYM.
Over three years, RAFE compounded at +20.51% per year against +17.42% for VYM; over five years the annualized figures are +12.07% and +12.12% respectively. Across the full 7-year window we track, RAFE has the edge at +12.26% annualized vs +10.78%.
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 15.6% for VYM. 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. 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 VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, RAFE currently yields 1.43% against 2.22% for VYM.
Holdings Overlap
62.3% of RAFE's money is in holdings VYM also owns. 60.4% of VYM's money is in holdings RAFE also owns.
The two portfolios partly overlap.
148 positions in common, counted across the 288 positions we hold weights for in RAFE and 557 in VYM, against full books of 295 and 613.
What only one of them owns
Our book lists 382 positions for VYM that do not appear in our book for RAFE (37.4% of the fund), and 131 for RAFE that do not appear in VYM (36.9%).
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 VYM | Difference |
|---|---|---|---|
| AVGOBroadcom Inc | 0.49% | 7.35% | 6.86% |
| JPMJpmorgan Chase | 2.57% | 3.82% | 1.25% |
| JNJJohnson & Johnson - Common | 3.35% | 2.51% | 0.84% |
| UNHUnitedhealth Group Incorporated | 3.16% | 1.52% | 1.64% |
| MRKMerck & Company Inc | 2.48% | 1.31% | 1.17% |
| ABBVAbbvie Inc. | 1.60% | 1.80% | 0.20% |
| PGProcter & Gamble Company | 1.83% | 1.37% | 0.46% |
| CSCOCisco Systems Inc. - Ordinary Shares | 1.18% | 1.86% | 0.68% |
| VZVerizon Communic | 2.07% | 0.80% | 1.27% |
| CCitigroup Inc. | 1.76% | 0.89% | 0.87% |
62.3% of RAFE is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
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Frequently Asked Questions
Which is cheaper, RAFE or VYM?
RAFE has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, RAFE or VYM?
Over the past year RAFE returned +26.41% vs +16.61% for VYM, so RAFE leads on 1-year performance. Over the longest common window we track (7 years), RAFE annualized +12.26% vs +10.78% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, RAFE or VYM?
RAFE has been the more volatile fund at 16.6% annualized versus 15.6% for VYM. Worst drawdown: RAFE -35.7% vs VYM -35.7%.
Should I hold both RAFE and VYM?
RAFE and VYM have a monthly-return correlation of 0.95, 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 VYM?
62.3% of RAFE's money is in holdings VYM also owns. 60.4% of VYM's is in holdings RAFE also owns. They hold 148 positions in common, counted across the 288 positions we hold weights for in RAFE and 557 in VYM.
Which pays a higher dividend, RAFE or VYM?
RAFE yields 1.43% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than RAFE?
VYM has a lower expense ratio. RAFE led over 1Y, 3Y and the full window, VYM over 5Y. The two have moved almost in lockstep, correlation 0.95. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 28.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.