MGC vs. RAFE

Last updated Jun 25, 2026

MGC (Vanguard Mega Cap ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - MGC tracks the CRSP US Mega Cap Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 5 years, MGC returned 13.53%/yr vs 11.13%/yr for RAFE. Their correlation of 0.85 suggests significant overlap in exposure. MGC charges 0.05%/yr vs 0.30%/yr for RAFE.

Performance

MGC vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Mega Cap ETF (MGC) 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, MGC achieves a 7.15% return, which is significantly lower than RAFE's 13.50% return.

MGC

• 1D: -0.26%
• 1M: -2.14%
• YTD: 7.15%
• 6M: 5.92%
• 1Y: 22.72%
• 3Y*: 21.82%
• 5Y*: 13.53%
• 10Y*: 16.30%

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)

MGC vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
MGC Vanguard Mega Cap ETF	7.15%	19.31%	27.16%	29.77%	-19.95%	27.58%	21.57%	1.20%
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 MGC and RAFE is 0.77, 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	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.82
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Dec 19, 2019	0.85

The correlation between MGC and RAFE shifts across timeframes, from 0.77 (1 year) to 0.87 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

MGC vs. RAFE — Risk / Return Rank

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

MGC

MGC Risk / Return Rank: 57
MGC Sharpe Ratio Rank: 57
MGC Sortino Ratio Rank: 56
MGC Omega Ratio Rank: 56
MGC Calmar Ratio Rank: 52
MGC Martin Ratio Rank: 61

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.

MGC vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap ETF (MGC) 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.

	MGC	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.75	2.48	-0.73
Sortino ratio: Return per unit of downside risk	2.40	3.46	-1.06
Omega ratio: Gain probability vs. loss probability	1.31	1.44	-0.13
Calmar ratio: Return relative to maximum drawdown	2.32	3.81	-1.49
Martin ratio: Return relative to average drawdown	9.94	14.74	-4.80

MGC vs. RAFE - Sharpe Ratio Comparison

The current MGC Sharpe Ratio is 1.75, which is comparable to the RAFE Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of MGC 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

MGC vs. RAFE - Drawdown Comparison

The maximum MGC drawdown since its inception was -52.26%, which is greater than RAFE's maximum drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for MGC and RAFE.

Drawdown Indicators

	MGC	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-52.26%	-35.74%	-16.52%
Max Drawdown (1Y) Largest decline over 1 year	-9.85%	-7.46%	-2.39%
Max Drawdown (3Y) Largest decline over 3 years	-19.28%	-16.36%	-2.92%
Max Drawdown (5Y) Largest decline over 5 years	-25.74%	-24.28%	-1.46%
Max Drawdown (10Y) Largest decline over 10 years	-33.07%	—	—
Current Drawdown Current decline from peak	-4.06%	-1.21%	-2.85%
Average Drawdown Average peak-to-trough decline	-7.17%	-6.17%	-1.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.29%	1.93%	+0.36%

Volatility

MGC vs. RAFE - Volatility Comparison

Vanguard Mega Cap ETF (MGC) has a higher volatility of 5.20% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 3.71%. This indicates that MGC'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

	MGC	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.20%	3.71%	+1.49%
Volatility (6M) Calculated over the trailing 6-month period	10.28%	8.70%	+1.58%
Volatility (1Y) Calculated over the trailing 1-year period	13.06%	11.51%	+1.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.39%	15.10%	+2.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.24%	19.39%	-1.15%

MGC vs. RAFE - Expense Ratio Comparison

MGC has a 0.05% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

MGC vs. RAFE - Dividend Comparison

MGC's dividend yield for the trailing twelve months is around 0.90%, less than RAFE's 1.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGC Vanguard Mega Cap ETF	0.90%	0.93%	1.15%	1.35%	1.65%	1.17%	1.45%	1.81%	2.10%	1.83%	2.14%	2.11%
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%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MGC and RAFE in my portfolio?

MGC and RAFE have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MGC or RAFE?

MGC has higher volatility (5.20%) compared to RAFE (3.71%). In terms of maximum drawdown, MGC dropped -52.26% vs RAFE's -35.74%.

Which ETF is better, MGC or RAFE?

On 5-year performance, MGC leads with 13.53% vs 11.13% for RAFE. On fees, MGC is cheaper at 0.05% 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, MGC or RAFE?

Over the 5-year period, MGC has performed better with a 13.53% return vs 11.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MGC or RAFE?

MGC is cheaper with a 0.05% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.50%, compared with 0.90% for MGC.

What is the main difference between MGC and RAFE?

MGC tracks CRSP US Mega Cap Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Vanguard and PIMCO. Their fees differ too: 0.05% for MGC and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.48 vs 1.75), 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.