RAFE vs. SCHG

Last updated Jun 3, 2026

RAFE (PIMCO RAFI ESG U.S. ETF) and SCHG (Schwab U.S. Large-Cap Growth ETF) are both exchange-traded funds - RAFE is a Large Cap Blend Equities fund tracking the RAFI ESG US Index, while SCHG is a Large Cap Growth Equities fund tracking the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. Both are passively managed. Over the past 5 years, RAFE returned 10.92%/yr vs 15.59%/yr for SCHG. A 0.71 correlation means they provide meaningful diversification when combined. RAFE charges 0.30%/yr vs 0.04%/yr for SCHG.

Performance

RAFE vs. SCHG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO RAFI ESG U.S. ETF (RAFE) and Schwab U.S. Large-Cap Growth ETF (SCHG). 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 higher than SCHG's 6.42% return.

RAFE

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

SCHG

• 1D: -1.23%
• 1M: 4.81%
• YTD: 6.42%
• 6M: 5.81%
• 1Y: 24.64%
• 3Y*: 25.02%
• 5Y*: 15.59%
• 10Y*: 18.77%

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

RAFE vs. SCHG - 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%
SCHG Schwab U.S. Large-Cap Growth ETF	6.42%	17.50%	34.95%	50.10%	-31.80%	28.11%	39.14%	0.81%

Correlation

The correlation between RAFE and SCHG is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (All Time) Calculated using the full available price history since Dec 20, 2019	0.71

The correlation between RAFE and SCHG shifts across timeframes, from 0.65 (1 year) to 0.75 (5 years), reflecting how their relationship changes across market environments.

RAFE vs. SCHG - Sectors Allocation Comparison

Sectors	RAFE	SCHG
Technology	29.8%	46.3%
Healthcare	23.1%	7.7%
Financial Services	13.3%	6.7%
Consumer Defensive	7.7%	1.7%
Communication Services	7.2%	16.0%
Consumer Cyclical	6.5%	12.7%
Industrials	5.0%	5.8%
Basic Materials	4.2%	1.4%
Real Estate	2.7%	0.5%
Utilities	0.6%	0.4%
Energy	-	0.8%

Return for Risk

RAFE vs. SCHG — 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

SCHG

SCHG Risk / Return Rank: 39
SCHG Sharpe Ratio Rank: 45
SCHG Sortino Ratio Rank: 43
SCHG Omega Ratio Rank: 43
SCHG Calmar Ratio Rank: 30
SCHG Martin Ratio Rank: 33

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. SCHG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO RAFI ESG U.S. ETF (RAFE) and Schwab U.S. Large-Cap Growth ETF (SCHG). 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	SCHG	Difference
Sharpe ratio Return per unit of total volatility	2.93	1.60	+1.33
Sortino ratio Return per unit of downside risk	4.06	2.18	+1.89
Omega ratio Gain probability vs. loss probability	1.52	1.28	+0.24
Calmar ratio Return relative to maximum drawdown	4.42	1.51	+2.91
Martin ratio Return relative to average drawdown	17.30	5.04	+12.25
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. SCHG - Sharpe Ratio Comparison

The current RAFE Sharpe Ratio is 2.93, which is higher than the SCHG Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of RAFE and SCHG, 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	SCHG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	1.60	+1.33
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.70	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.87	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.65	0.84	-0.19

Drawdowns

RAFE vs. SCHG - Drawdown Comparison

The maximum RAFE drawdown since its inception was -35.74%, roughly equal to the maximum SCHG drawdown of -34.59%. Use the drawdown chart below to compare losses from any high point for RAFE and SCHG.

Drawdown Indicators

	RAFE	SCHG	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-34.59%	-1.15%
Max Drawdown (1Y) Largest decline over 1 year	-7.46%	-16.41%	+8.95%
Max Drawdown (3Y) Largest decline over 3 years	-16.36%	-23.39%	+7.03%
Max Drawdown (5Y) Largest decline over 5 years	-24.28%	-34.59%	+10.31%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.59%	—
Current Drawdown Current decline from peak	0.00%	-1.78%	+1.78%
Average Drawdown Average peak-to-trough decline	-6.22%	-5.20%	-1.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.91%	4.90%	-2.99%

Volatility

RAFE vs. SCHG - Volatility Comparison

The current volatility for PIMCO RAFI ESG U.S. ETF (RAFE) is 3.01%, while Schwab U.S. Large-Cap Growth ETF (SCHG) has a volatility of 3.61%. This indicates that RAFE experiences smaller price fluctuations and is considered to be less risky than SCHG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RAFE	SCHG	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.01%	3.61%	-0.60%
Volatility (6M) Calculated over the trailing 6-month period	8.27%	11.62%	-3.35%
Volatility (1Y) Calculated over the trailing 1-year period	11.33%	15.50%	-4.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.08%	22.27%	-7.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.44%	21.55%	-2.11%

RAFE vs. SCHG - Expense Ratio Comparison

RAFE has a 0.30% expense ratio, which is higher than SCHG's 0.04% expense ratio.

Dividends

RAFE vs. SCHG - Dividend Comparison

RAFE's dividend yield for the trailing twelve months is around 1.49%, more than SCHG's 0.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
SCHG Schwab U.S. Large-Cap Growth ETF	0.36%	0.36%	0.39%	0.46%	0.55%	0.42%	0.52%	0.82%	1.27%	1.01%	1.04%	1.22%

Frequently Asked Questions

Can I hold both RAFE and SCHG in my portfolio?

RAFE and SCHG have a correlation of 0.65, 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 SCHG?

SCHG has higher volatility (3.61%) compared to RAFE (3.01%). In terms of maximum drawdown, RAFE dropped -35.74% vs SCHG's -34.59%.

Which ETF is better, RAFE or SCHG?

On 5-year performance, SCHG leads with 15.59% vs 10.92% for RAFE. On fees, SCHG is cheaper at 0.04% 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 SCHG?

Over the 5-year period, SCHG has performed better with a 15.59% 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 SCHG?

SCHG is cheaper with a 0.04% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.49%, compared with 0.36% for SCHG.

What is the main difference between RAFE and SCHG?

RAFE is categorized as Large Cap Blend Equities, while SCHG is Large Cap Growth Equities. RAFE tracks RAFI ESG US Index, while SCHG tracks Dow Jones U.S. Large-Cap Growth Total Stock Market Index. They also come from different issuers: PIMCO and Charles Schwab. Their fees differ too: 0.30% for RAFE and 0.04% for SCHG.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.93 vs 1.60), 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.