LQAI vs. RAFE

Last updated Jun 25, 2026

LQAI (LG QRAFT AI-Powered U.S. Large Cap Core ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds. LQAI is actively managed, while RAFE is passively managed. Over the past year, LQAI returned 35.08% vs 28.30% for RAFE. A 0.79 correlation means they provide meaningful diversification when combined. LQAI charges 0.75%/yr vs 0.30%/yr for RAFE.

Performance

LQAI vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LG QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI) 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, LQAI achieves a 19.04% return, which is significantly higher than RAFE's 13.50% return.

LQAI

• 1D: -0.53%
• 1M: 1.56%
• YTD: 19.04%
• 6M: 17.20%
• 1Y: 35.08%
• 3Y*: —
• 5Y*: —
• 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)

LQAI vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
LQAI LG QRAFT AI-Powered U.S. Large Cap Core ETF	19.04%	13.70%	27.82%	9.29%
RAFE PIMCO RAFI ESG U.S. ETF	13.50%	17.60%	13.81%	10.79%

Correlation

The correlation between LQAI and RAFE is 0.72, 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	0.72
Correlation (All Time) Calculated using the full available price history since Nov 7, 2023	0.79

The correlation between LQAI and RAFE has been stable across timeframes, ranging from 0.72 to 0.79 - a consistent structural relationship.

Return for Risk

LQAI vs. RAFE — Risk / Return Rank

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

LQAI

LQAI Risk / Return Rank: 70
LQAI Sharpe Ratio Rank: 73
LQAI Sortino Ratio Rank: 66
LQAI Omega Ratio Rank: 72
LQAI Calmar Ratio Rank: 77
LQAI Martin Ratio Rank: 62

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.

LQAI vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LG QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI) 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.

	LQAI	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	2.07	2.48	-0.41
Sortino ratio: Return per unit of downside risk	2.67	3.46	-0.80
Omega ratio: Gain probability vs. loss probability	1.38	1.44	-0.07
Calmar ratio: Return relative to maximum drawdown	3.53	3.81	-0.29
Martin ratio: Return relative to average drawdown	9.92	14.74	-4.82

LQAI vs. RAFE - Sharpe Ratio Comparison

The current LQAI Sharpe Ratio is 2.07, which is comparable to the RAFE Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of LQAI 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

LQAI vs. RAFE - Drawdown Comparison

The maximum LQAI drawdown since its inception was -21.24%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for LQAI and RAFE.

Drawdown Indicators

	LQAI	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-21.24%	-35.74%	+14.50%
Max Drawdown (1Y) Largest decline over 1 year	-10.00%	-7.46%	-2.54%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.36%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-3.48%	-1.21%	-2.27%
Average Drawdown Average peak-to-trough decline	-3.04%	-6.17%	+3.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.55%	1.93%	+1.62%

Volatility

LQAI vs. RAFE - Volatility Comparison

LG QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI) has a higher volatility of 8.59% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 3.71%. This indicates that LQAI'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.

Volatility by Period

	LQAI	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.59%	3.71%	+4.88%
Volatility (6M) Calculated over the trailing 6-month period	13.44%	8.70%	+4.74%
Volatility (1Y) Calculated over the trailing 1-year period	17.09%	11.51%	+5.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.50%	15.10%	+2.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.50%	19.39%	-1.89%

LQAI vs. RAFE - Expense Ratio Comparison

LQAI has a 0.75% expense ratio, which is higher than RAFE's 0.30% expense ratio.

Dividends

LQAI vs. RAFE - Dividend Comparison

LQAI's dividend yield for the trailing twelve months is around 0.91%, less than RAFE's 1.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
LQAI LG QRAFT AI-Powered U.S. Large Cap Core ETF	0.91%	1.14%	0.69%	0.16%	0.00%	0.00%	0.00%
RAFE PIMCO RAFI ESG U.S. ETF	1.50%	1.67%	1.79%	1.81%	2.22%	1.42%	2.36%

Frequently Asked Questions

Can I hold both LQAI and RAFE in my portfolio?

LQAI and RAFE have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LQAI or RAFE?

LQAI has higher volatility (8.59%) compared to RAFE (3.71%). In terms of maximum drawdown, LQAI dropped -21.24% vs RAFE's -35.74%.

Which ETF is better, LQAI or RAFE?

On 1-year performance, LQAI leads with 35.08% vs 28.30% for RAFE. On fees, RAFE is cheaper at 0.30% per year. On volatility, RAFE has been the lower-risk option at 3.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LQAI or RAFE?

Over the 1-year period, LQAI has performed better with a 35.08% return vs 28.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LQAI or RAFE?

RAFE is cheaper with a 0.30% expense ratio, compared with 0.75% for LQAI.

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

RAFE has the higher dividend yield at 1.50%, compared with 0.91% for LQAI.

What is the main difference between LQAI and RAFE?

They also come from different issuers: QRAFT and PIMCO. Their fees differ too: 0.75% for LQAI and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.48 vs 2.07), 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.