IUS vs. RAFE

Last updated Jun 25, 2026

IUS (Invesco RAFI Strategic US ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - IUS tracks the Invesco Strategic US Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 5 years, IUS returned 13.63%/yr vs 11.13%/yr for RAFE. Their correlation of 0.93 suggests significant overlap in exposure. IUS charges 0.19%/yr vs 0.30%/yr for RAFE.

Performance

IUS vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco RAFI Strategic US ETF (IUS) 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, IUS achieves a 14.47% return, which is significantly higher than RAFE's 13.50% return.

IUS

• 1D: 0.03%
• 1M: 0.21%
• YTD: 14.47%
• 6M: 13.60%
• 1Y: 29.78%
• 3Y*: 19.92%
• 5Y*: 13.63%
• 10Y*: —

RAFE

• 1D: 0.04%
• 1M: 2.27%
• YTD: 13.50%
• 6M: 12.30%
• 1Y: 28.30%
• 3Y*: 19.09%
• 5Y*: 11.13%
• 10Y*: —

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

IUS vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IUS Invesco RAFI Strategic US ETF	14.47%	16.94%	16.51%	20.79%	-8.34%	32.17%	15.09%	0.91%
RAFE PIMCO RAFI ESG U.S. ETF	13.50%	17.60%	13.81%	18.80%	-13.76%	30.16%	5.29%	0.43%

Correlation

The correlation between IUS and RAFE is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (All Time) Calculated using the full available price history since Dec 19, 2019	0.93

The correlation between IUS and RAFE has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

Return for Risk

IUS vs. RAFE — Risk / Return Rank

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

IUS

IUS Risk / Return Rank: 91
IUS Sharpe Ratio Rank: 91
IUS Sortino Ratio Rank: 91
IUS Omega Ratio Rank: 90
IUS Calmar Ratio Rank: 89
IUS Martin Ratio Rank: 92

RAFE

RAFE Risk / Return Rank: 84
RAFE Sharpe Ratio Rank: 86
RAFE Sortino Ratio Rank: 87
RAFE Omega Ratio Rank: 83
RAFE Calmar Ratio Rank: 81
RAFE Martin Ratio Rank: 83

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.

IUS vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco RAFI Strategic US ETF (IUS) 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.

	IUS	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	2.81	2.48	+0.32
Sortino ratio: Return per unit of downside risk	3.84	3.46	+0.37
Omega ratio: Gain probability vs. loss probability	1.51	1.44	+0.07
Calmar ratio: Return relative to maximum drawdown	4.87	3.81	+1.05
Martin ratio: Return relative to average drawdown	20.20	14.74	+5.46

IUS vs. RAFE - Sharpe Ratio Comparison

The current IUS Sharpe Ratio is 2.81, which is comparable to the RAFE Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of IUS 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

IUS vs. RAFE - Drawdown Comparison

The maximum IUS drawdown since its inception was -34.67%, roughly equal to the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for IUS and RAFE.

Drawdown Indicators

	IUS	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-34.67%	-35.74%	+1.07%
Max Drawdown (1Y) Largest decline over 1 year	-6.15%	-7.46%	+1.31%
Max Drawdown (3Y) Largest decline over 3 years	-15.61%	-16.36%	+0.75%
Max Drawdown (5Y) Largest decline over 5 years	-18.72%	-24.28%	+5.56%
Current Drawdown Current decline from peak	-1.73%	-1.21%	-0.52%
Average Drawdown Average peak-to-trough decline	-3.85%	-6.17%	+2.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.48%	1.93%	-0.45%

Volatility

IUS vs. RAFE - Volatility Comparison

Invesco RAFI Strategic US ETF (IUS) and PIMCO RAFI ESG U.S. ETF (RAFE) have volatilities of 3.77% and 3.71%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IUS	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.77%	3.71%	+0.06%
Volatility (6M) Calculated over the trailing 6-month period	8.03%	8.70%	-0.67%
Volatility (1Y) Calculated over the trailing 1-year period	10.69%	11.51%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.03%	15.10%	-0.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.02%	19.39%	-1.37%

IUS vs. RAFE - Expense Ratio Comparison

IUS has a 0.19% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

IUS vs. RAFE - Dividend Comparison

IUS's dividend yield for the trailing twelve months is around 1.30%, less than RAFE's 1.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
IUS Invesco RAFI Strategic US ETF	1.30%	1.48%	1.52%	1.72%	1.78%	1.46%	1.74%	1.77%	0.73%
RAFE PIMCO RAFI ESG U.S. ETF	1.50%	1.67%	1.79%	1.81%	2.22%	1.42%	2.36%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IUS and RAFE in my portfolio?

With a correlation of 0.92, IUS and RAFE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IUS or RAFE?

IUS has higher volatility (3.77%) compared to RAFE (3.71%). In terms of maximum drawdown, IUS dropped -34.67% vs RAFE's -35.74%.

Which ETF is better, IUS or RAFE?

On 5-year performance, IUS leads with 13.63% vs 11.13% for RAFE. On fees, IUS is cheaper at 0.19% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IUS or RAFE?

Over the 5-year period, IUS has performed better with a 13.63% return vs 11.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IUS or RAFE?

IUS is cheaper with a 0.19% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.50%, compared with 1.30% for IUS.

What is the main difference between IUS and RAFE?

IUS tracks Invesco Strategic US Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Invesco and PIMCO. Their fees differ too: 0.19% for IUS and 0.30% for RAFE.

Which has better risk-adjusted returns?

IUS currently has the higher Sharpe Ratio (2.81 vs 2.48), 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.