QUAL vs. RAFE
QUAL (iShares MSCI USA Quality Factor ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - QUAL tracks the MSCI USA Sector Neutral Quality Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 5 years, QUAL returned 11.48%/yr vs 11.38%/yr for RAFE. Their correlation of 0.87 suggests significant overlap in exposure. QUAL charges 0.15%/yr vs 0.30%/yr for RAFE.
Performance
QUAL vs. RAFE - Performance Comparison
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Returns By Period
In the year-to-date period, QUAL achieves a 10.81% return, which is significantly lower than RAFE's 15.05% return.
QUAL
- 1D
- 0.27%
- 1M
- 1.25%
- 6M
- 8.14%
- YTD
- 10.81%
- 1Y
- 20.35%
- 3Y*
- 18.14%
- 5Y*
- 11.48%
- 10Y*
- 14.14%
RAFE
- 1D
- -0.56%
- 1M
- 1.02%
- 6M
- 13.19%
- YTD
- 15.05%
- 1Y
- 27.32%
- 3Y*
- 18.54%
- 5Y*
- 11.38%
- 10Y*
- —
QUAL vs. RAFE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
QUAL iShares MSCI USA Quality Factor ETF | 10.81% | 12.65% | 22.29% | 30.88% | -20.50% | 26.94% | 17.04% | 1.05% |
RAFE PIMCO RAFI ESG U.S. ETF | 15.05% | 17.60% | 13.81% | 18.80% | -13.76% | 30.16% | 5.29% | 0.43% |
Correlation
The correlation between QUAL and RAFE is 0.85, 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 | 0.85 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.86 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.88 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2019 | 0.87 |
The correlation between QUAL and RAFE has been stable across timeframes, ranging from 0.85 to 0.88 - a consistent structural relationship.
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Return for Risk
QUAL vs. RAFE — Risk / Return Rank
QUAL
RAFE
QUAL vs. RAFE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI USA Quality Factor ETF (QUAL) 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.
| QUAL | RAFE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.74 | ||
| Sortino ratioReturn per unit of downside risk | -0.99 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.43 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.26 | 3.68 | -1.42 |
| Martin ratioReturn relative to average drawdown | 10.17 | 14.34 | -4.17 |
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Drawdowns
QUAL vs. RAFE - Drawdown Comparison
The maximum QUAL drawdown since its inception was -34.06%, roughly equal to the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for QUAL and RAFE.
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Drawdown Indicators
| QUAL | RAFE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.06% | -35.74% | +1.68% |
Max Drawdown (1Y)Largest decline over 1 year | -9.03% | -7.46% | -1.57% |
Max Drawdown (3Y)Largest decline over 3 years | -18.00% | -16.36% | -1.64% |
Max Drawdown (5Y)Largest decline over 5 years | -28.23% | -24.28% | -3.95% |
Max Drawdown (10Y)Largest decline over 10 years | -34.06% | — | — |
Current DrawdownCurrent decline from peak | -0.20% | -0.62% | +0.42% |
Average DrawdownAverage peak-to-trough decline | -4.08% | -6.12% | +2.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.01% | 1.91% | +0.10% |
Volatility
QUAL vs. RAFE - Volatility Comparison
iShares MSCI USA Quality Factor ETF (QUAL) has a higher volatility of 3.53% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 2.40%. This indicates that QUAL'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.
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Volatility by Period
| QUAL | RAFE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.53% | 2.40% | +1.13% |
Volatility (6M)Calculated over the trailing 6-month period | 9.70% | 8.61% | +1.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.15% | 11.34% | +0.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.39% | 15.07% | +2.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.08% | 19.32% | -1.24% |
QUAL vs. RAFE - Expense Ratio Comparison
QUAL has a 0.15% expense ratio, which is lower than RAFE's 0.30% expense ratio.
Dividends
QUAL vs. RAFE - Dividend Comparison
QUAL's dividend yield for the trailing twelve months is around 0.86%, less than RAFE's 1.50% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
QUAL iShares MSCI USA Quality Factor ETF | 0.86% | 0.94% | 1.02% | 1.23% | 1.59% | 1.20% | 1.39% | 1.60% | 2.00% | 1.76% | 1.96% | 1.63% |
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
QUAL and RAFE have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
QUAL has higher volatility (3.53%) compared to RAFE (2.40%). In terms of maximum drawdown, QUAL dropped -34.06% vs RAFE's -35.74%.
On 5-year performance, QUAL leads with 11.48% vs 11.38% for RAFE. On fees, QUAL is cheaper at 0.15% per year. On volatility, RAFE has been the lower-risk option at 2.40%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, QUAL has performed better with a 11.48% return vs 11.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
QUAL is cheaper with a 0.15% expense ratio, compared with 0.30% for RAFE.
RAFE has the higher dividend yield at 1.50%, compared with 0.86% for QUAL.
QUAL tracks MSCI USA Sector Neutral Quality Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: iShares and PIMCO. Their fees differ too: 0.15% for QUAL and 0.30% for RAFE.
RAFE currently has the higher Sharpe Ratio (2.42 vs 1.68), 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.
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