ESG vs. RAFE
ESG (FlexShares STOXX US ESG Select Index Fund) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - ESG tracks the STOXX USA ESG Select KPIs Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 5 years, ESG returned 11.70%/yr vs 11.54%/yr for RAFE. Their correlation of 0.88 means they have usually moved in the same direction. ESG charges 0.32%/yr vs 0.30%/yr for RAFE.
Performance
ESG vs. RAFE - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, ESG achieves a 11.91% return, which is significantly lower than RAFE's 16.68% return.
ESG
- 1D
- 0.20%
- 1M
- 0.58%
- 6M
- 9.98%
- YTD
- 11.91%
- 1Y
- 22.28%
- 3Y*
- 17.88%
- 5Y*
- 11.70%
- 10Y*
- 14.84%
- ALL TIME*
- 14.86%
RAFE
- 1D
- -0.31%
- 1M
- 1.12%
- 6M
- 14.64%
- YTD
- 16.68%
- 1Y
- 31.75%
- 3Y*
- 18.09%
- 5Y*
- 11.54%
- 10Y*
- —
- ALL TIME*
- 12.67%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $141.70K | $104.98K | $155.55K | |
| $564.44K | $467.39K | $607.84K |
ESG vs. RAFE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
ESG FlexShares STOXX US ESG Select Index Fund | 11.91% | 16.04% | 20.22% | 27.86% | -19.89% | 28.48% | 20.75% | 1.34% |
RAFE PIMCO RAFI ESG U.S. ETF | 16.68% | 17.60% | 13.81% | 18.80% | -13.76% | 30.16% | 5.29% | 0.43% |
Correlation
The correlation between ESG and RAFE is 0.86, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.86 |
Correlation (3Y) Balances recent behavior with more history. | 0.90 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.91 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2019 | 0.88 |
The correlation between ESG and RAFE has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
ESG vs. RAFE — Risk / Return Rank
ESG
RAFE
ESG vs. RAFE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares STOXX US ESG Select Index Fund (ESG) and PIMCO RAFI ESG U.S. ETF (RAFE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ESG | RAFE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.93 | ||
| Sortino ratioReturn per unit of downside risk | -1.28 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.48 | -0.17 |
| Calmar ratioReturn relative to maximum drawdown | 2.36 | 4.09 | -1.72 |
| Martin ratioReturn relative to average drawdown | 9.79 | 16.26 | -6.47 |
Loading charts...
Drawdowns
ESG vs. RAFE - Drawdown Comparison
The maximum ESG drawdown since its inception was -32.53%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for ESG and RAFE.
Loading charts...
Drawdown Indicators
| ESG | RAFE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.53% | -35.74% | +3.21% |
Max Drawdown (1Y)Largest decline over 1 year | -8.68% | -7.46% | -1.22% |
Max Drawdown (3Y)Largest decline over 3 years | -18.32% | -16.36% | -1.96% |
Max Drawdown (5Y)Largest decline over 5 years | -26.04% | -24.28% | -1.76% |
Max Drawdown (10Y)Largest decline over 10 years | -32.53% | — | — |
Current DrawdownCurrent decline from peak | -0.71% | -0.96% | +0.25% |
Average DrawdownAverage peak-to-trough decline | -5.01% | -6.08% | +1.07% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.09% | 1.87% | +0.22% |
Volatility
ESG vs. RAFE - Volatility Comparison
FlexShares STOXX US ESG Select Index Fund (ESG) has a higher volatility of 3.30% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 3.01%. This indicates that ESG's price experiences larger fluctuations and is considered to be riskier than RAFE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| ESG | RAFE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.30% | 3.01% | +0.29% |
Volatility (6M)Calculated over the trailing 6-month period | 9.35% | 8.70% | +0.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.82% | 11.48% | +0.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.79% | 15.05% | +1.74% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.33% | 19.27% | -0.94% |
ESG vs. RAFE - Expense Ratio Comparison
ESG has a 0.32% expense ratio, which is higher than RAFE's 0.30% expense ratio.
Dividends
ESG vs. RAFE - Dividend Comparison
ESG's dividend yield for the trailing twelve months is around 0.87%, less than RAFE's 1.48% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
ESG FlexShares STOXX US ESG Select Index Fund | 0.87% | 0.96% | 1.18% | 1.10% | 1.38% | 1.03% | 1.33% | 1.51% | 1.72% | 1.52% | 0.92% |
RAFE PIMCO RAFI ESG U.S. ETF | 1.48% | 1.67% | 1.79% | 1.81% | 2.22% | 1.42% | 2.36% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ESG and RAFE have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ESG has higher volatility (3.30%) compared to RAFE (3.01%). In terms of maximum drawdown, ESG dropped -32.53% vs RAFE's -35.74%.
On 5-year performance, ESG leads with 11.70% vs 11.54% for RAFE. On fees, RAFE is cheaper at 0.30% per year. On volatility, RAFE has been the lower-risk option at 3.01%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, ESG has performed better with a 11.70% return vs 11.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
RAFE is cheaper with a 0.30% expense ratio, compared with 0.32% for ESG.
RAFE has the higher dividend yield at 1.48%, compared with 0.87% for ESG.
ESG tracks STOXX USA ESG Select KPIs Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Northern Trust and PIMCO. Their fees differ too: 0.32% for ESG and 0.30% for RAFE.
RAFE currently has the higher Sharpe Ratio (2.67 vs 1.74), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for ESG and RAFE
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer