ESMV vs. RAFE

Last updated Jul 14, 2026

ESMV (iShares ESG MSCI USA Min Vol Factor ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - ESMV tracks the MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 3 years, ESMV returned 10.66%/yr vs 18.76%/yr for RAFE. Their correlation of 0.81 suggests significant overlap in exposure. ESMV charges 0.18%/yr vs 0.30%/yr for RAFE.

Performance

ESMV vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares ESG MSCI USA Min Vol Factor ETF (ESMV) and PIMCO RAFI ESG U.S. ETF (RAFE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESMV achieves a 7.54% return, which is significantly lower than RAFE's 15.70% return.

ESMV

• 1D: 0.00%
• 1M: 2.40%
• 6M: 6.50%
• YTD: 7.54%
• 1Y: 9.20%
• 3Y*: 10.66%
• 5Y*: —
• 10Y*: —

RAFE

• 1D: -0.06%
• 1M: 1.59%
• 6M: 13.30%
• YTD: 15.70%
• 1Y: 28.06%
• 3Y*: 18.76%
• 5Y*: 11.46%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ESMV vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
ESMV iShares ESG MSCI USA Min Vol Factor ETF	7.54%	5.34%	13.06%	12.20%	-11.08%	3.13%
RAFE PIMCO RAFI ESG U.S. ETF	15.70%	17.60%	13.81%	18.80%	-13.76%	2.13%

Correlation

The correlation between ESMV and RAFE is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.76
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (All Time) Calculated using the full available price history since Nov 4, 2021	0.81

The correlation between ESMV and RAFE has been stable across timeframes, ranging from 0.76 to 0.83 - a consistent structural relationship.

Return for Risk

ESMV vs. RAFE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ESMV

ESMV Risk / Return Rank: 32
ESMV Sharpe Ratio Rank: 31
ESMV Sortino Ratio Rank: 29
ESMV Omega Ratio Rank: 31
ESMV Calmar Ratio Rank: 32
ESMV Martin Ratio Rank: 34

RAFE

RAFE Risk / Return Rank: 89
RAFE Sharpe Ratio Rank: 91
RAFE Sortino Ratio Rank: 91
RAFE Omega Ratio Rank: 89
RAFE Calmar Ratio Rank: 86
RAFE Martin Ratio Rank: 88

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ESMV vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) 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.

	ESMV	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	0.92	2.49	-1.57
Sortino ratio: Return per unit of downside risk	1.32	3.48	-2.16
Omega ratio: Gain probability vs. loss probability	1.18	1.45	-0.27
Calmar ratio: Return relative to maximum drawdown	1.32	3.78	-2.46
Martin ratio: Return relative to average drawdown	4.04	14.72	-10.68

ESMV vs. RAFE - Sharpe Ratio Comparison

The current ESMV Sharpe Ratio is 0.92, which is lower than the RAFE Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of ESMV and RAFE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ESMV vs. RAFE - Drawdown Comparison

The maximum ESMV drawdown since its inception was -19.77%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for ESMV and RAFE.

Drawdown Indicators

	ESMV	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-35.74%	+15.97%
Max Drawdown (1Y) Largest decline over 1 year	-7.01%	-7.46%	+0.45%
Max Drawdown (3Y) Largest decline over 3 years	-12.16%	-16.36%	+4.20%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-0.25%	-0.06%	-0.19%
Average Drawdown Average peak-to-trough decline	-5.23%	-6.13%	+0.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.28%	1.91%	+0.37%

Volatility

ESMV vs. RAFE - Volatility Comparison

The current volatility for iShares ESG MSCI USA Min Vol Factor ETF (ESMV) is 2.24%, while PIMCO RAFI ESG U.S. ETF (RAFE) has a volatility of 2.78%. This indicates that ESMV experiences smaller price fluctuations and is considered to be less risky than RAFE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESMV	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.24%	2.78%	-0.54%
Volatility (6M) Calculated over the trailing 6-month period	6.50%	8.59%	-2.09%
Volatility (1Y) Calculated over the trailing 1-year period	10.02%	11.34%	-1.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.15%	15.07%	-1.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.15%	19.33%	-6.18%

ESMV vs. RAFE - Expense Ratio Comparison

ESMV has a 0.18% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

ESMV vs. RAFE - Dividend Comparison

ESMV's dividend yield for the trailing twelve months is around 1.50%, which matches RAFE's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
ESMV iShares ESG MSCI USA Min Vol Factor ETF	1.50%	1.56%	1.71%	1.75%	1.66%	0.24%	0.00%
RAFE PIMCO RAFI ESG U.S. ETF	1.49%	1.67%	1.79%	1.81%	2.22%	1.42%	2.36%

Frequently Asked Questions

Can I hold both ESMV and RAFE in my portfolio?

ESMV and RAFE have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESMV or RAFE?

RAFE has higher volatility (2.78%) compared to ESMV (2.24%). In terms of maximum drawdown, ESMV dropped -19.77% vs RAFE's -35.74%.

Which ETF is better, ESMV or RAFE?

On 3-year performance, RAFE leads with 18.76% vs 10.66% for ESMV. On fees, ESMV is cheaper at 0.18% per year. On volatility, ESMV has been the lower-risk option at 2.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESMV or RAFE?

Over the 3-year period, RAFE has performed better with a 18.76% return vs 10.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESMV or RAFE?

ESMV is cheaper with a 0.18% expense ratio, compared with 0.30% for RAFE.

Which ETF pays a higher dividend yield, ESMV or RAFE?

ESMV and RAFE have nearly identical dividend yields, around 1.50%.

What is the main difference between ESMV and RAFE?

ESMV tracks MSCI USA Minimum Volatility Extended ESG Reduced Carbon Target Index - Benchmark TR Gross, while RAFE tracks RAFI ESG US Index. They also come from different issuers: iShares and PIMCO. Their fees differ too: 0.18% for ESMV and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.49 vs 0.92), 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.