RAFE vs. MTUM

Last updated Jun 3, 2026

RAFE (PIMCO RAFI ESG U.S. ETF) and MTUM (iShares MSCI USA Momentum Factor ETF) are both exchange-traded funds - RAFE is a Large Cap Blend Equities fund tracking the RAFI ESG US Index, while MTUM is a Momentum fund tracking the MSCI USA Momentum SR Variant Index. Both are passively managed. Over the past 5 years, RAFE returned 10.92%/yr vs 15.21%/yr for MTUM. A 0.70 correlation means they provide meaningful diversification when combined. RAFE charges 0.30%/yr vs 0.15%/yr for MTUM.

Performance

RAFE vs. MTUM - Performance Comparison

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

Returns By Period

In the year-to-date period, RAFE achieves a 13.86% return, which is significantly lower than MTUM's 31.75% return.

RAFE

• 1D: 0.94%
• 1M: 6.78%
• YTD: 13.86%
• 6M: 15.30%
• 1Y: 33.02%
• 3Y*: 19.71%
• 5Y*: 10.92%
• 10Y*: —

MTUM

• 1D: 1.06%
• 1M: 15.90%
• YTD: 31.75%
• 6M: 32.38%
• 1Y: 41.76%
• 3Y*: 34.75%
• 5Y*: 15.21%
• 10Y*: 17.31%

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

RAFE vs. MTUM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
RAFE PIMCO RAFI ESG U.S. ETF	13.86%	17.60%	13.81%	18.80%	-13.76%	30.16%	5.29%	0.55%
MTUM iShares MSCI USA Momentum Factor ETF	31.75%	22.15%	32.89%	9.15%	-18.27%	13.36%	29.86%	0.70%

Correlation

The correlation between RAFE and MTUM is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (All Time) Calculated using the full available price history since Dec 20, 2019	0.70

The correlation between RAFE and MTUM shifts across timeframes, from 0.66 (1 year) to 0.77 (5 years), reflecting how their relationship changes across market environments.

RAFE vs. MTUM - Sectors Allocation Comparison

Sectors	RAFE	MTUM
Technology	29.8%	44.4%
Healthcare	23.1%	6.9%
Financial Services	13.3%	10.4%
Consumer Defensive	7.7%	3.3%
Communication Services	7.2%	7.4%
Consumer Cyclical	6.5%	3.6%
Industrials	5.0%	15.6%
Basic Materials	4.2%	1.7%
Real Estate	2.7%	1.8%
Utilities	0.6%	1.6%
Energy	-	3.5%

Return for Risk

RAFE vs. MTUM — Risk / Return Rank

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

RAFE

RAFE Risk / Return Rank: 85
RAFE Sharpe Ratio Rank: 87
RAFE Sortino Ratio Rank: 88
RAFE Omega Ratio Rank: 84
RAFE Calmar Ratio Rank: 82
RAFE Martin Ratio Rank: 83

MTUM

MTUM Risk / Return Rank: 67
MTUM Sharpe Ratio Rank: 64
MTUM Sortino Ratio Rank: 62
MTUM Omega Ratio Rank: 63
MTUM Calmar Ratio Rank: 71
MTUM Martin Ratio Rank: 75

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.

RAFE vs. MTUM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO RAFI ESG U.S. ETF (RAFE) and iShares MSCI USA Momentum Factor ETF (MTUM). 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.

	RAFE	MTUM	Difference
Sharpe ratio Return per unit of total volatility	2.93	2.20	+0.72
Sortino ratio Return per unit of downside risk	4.06	2.98	+1.09
Omega ratio Gain probability vs. loss probability	1.52	1.39	+0.13
Calmar ratio Return relative to maximum drawdown	4.42	3.64	+0.79
Martin ratio Return relative to average drawdown	17.30	14.50	+2.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RAFE vs. MTUM - Sharpe Ratio Comparison

The current RAFE Sharpe Ratio is 2.93, which is higher than the MTUM Sharpe Ratio of 2.20. The chart below compares the historical Sharpe Ratios of RAFE and MTUM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	RAFE	MTUM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	2.20	+0.72
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.74	-0.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.83	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	0.85	-0.20

Drawdowns

RAFE vs. MTUM - Drawdown Comparison

The maximum RAFE drawdown since its inception was -35.74%, roughly equal to the maximum MTUM drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for RAFE and MTUM.

Drawdown Indicators

	RAFE	MTUM	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-34.08%	-1.66%
Max Drawdown (1Y) Largest decline over 1 year	-7.46%	-11.54%	+4.08%
Max Drawdown (3Y) Largest decline over 3 years	-16.36%	-20.99%	+4.63%
Max Drawdown (5Y) Largest decline over 5 years	-24.28%	-32.28%	+8.00%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.08%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.22%	-6.21%	-0.01%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.91%	2.89%	-0.98%

Volatility

RAFE vs. MTUM - Volatility Comparison

The current volatility for PIMCO RAFI ESG U.S. ETF (RAFE) is 3.01%, while iShares MSCI USA Momentum Factor ETF (MTUM) has a volatility of 7.68%. This indicates that RAFE experiences smaller price fluctuations and is considered to be less risky than MTUM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RAFE	MTUM	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.01%	7.68%	-4.67%
Volatility (6M) Calculated over the trailing 6-month period	8.27%	16.46%	-8.19%
Volatility (1Y) Calculated over the trailing 1-year period	11.33%	19.04%	-7.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.08%	20.60%	-5.52%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.44%	21.03%	-1.59%

RAFE vs. MTUM - Expense Ratio Comparison

RAFE has a 0.30% expense ratio, which is higher than MTUM's 0.15% expense ratio.

Dividends

RAFE vs. MTUM - Dividend Comparison

RAFE's dividend yield for the trailing twelve months is around 1.49%, more than MTUM's 0.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MTUM iShares MSCI USA Momentum Factor ETF	0.60%	0.91%	0.75%	1.35%	1.80%	0.55%	0.83%	1.48%	1.27%	1.02%	1.43%	1.12%
RAFE PIMCO RAFI ESG U.S. ETF	1.49%	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 RAFE and MTUM in my portfolio?

RAFE and MTUM have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RAFE or MTUM?

MTUM has higher volatility (7.68%) compared to RAFE (3.01%). In terms of maximum drawdown, RAFE dropped -35.74% vs MTUM's -34.08%.

Which ETF is better, RAFE or MTUM?

On 5-year performance, MTUM leads with 15.21% vs 10.92% for RAFE. On fees, MTUM is cheaper at 0.15% per year. On volatility, RAFE has been the lower-risk option at 3.01%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RAFE or MTUM?

Over the 5-year period, MTUM has performed better with a 15.21% return vs 10.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RAFE or MTUM?

MTUM is cheaper with a 0.15% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.49%, compared with 0.60% for MTUM.

What is the main difference between RAFE and MTUM?

RAFE is categorized as Large Cap Blend Equities, while MTUM is Momentum. RAFE tracks RAFI ESG US Index, while MTUM tracks MSCI USA Momentum SR Variant Index. They also come from different issuers: PIMCO and iShares. Their fees differ too: 0.30% for RAFE and 0.15% for MTUM.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.93 vs 2.20), 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.