RAFE vs. USMV
RAFE (PIMCO RAFI ESG U.S. ETF) and USMV (iShares MSCI USA Min Vol Factor ETF) are both Large Cap Blend Equities funds - RAFE tracks the RAFI ESG US Index while USMV tracks the MSCI USA Minimum Volatility Index. Both are passively managed. Over the past 5 years, RAFE returned 11.46%/yr vs 7.16%/yr for USMV. A 0.80 correlation means they provide meaningful diversification when combined. RAFE charges 0.30%/yr vs 0.15%/yr for USMV.
Performance
RAFE vs. USMV - Performance Comparison
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Returns By Period
In the year-to-date period, RAFE achieves a 15.70% return, which is significantly higher than USMV's 4.64% return.
RAFE
- 1D
- -0.06%
- 1M
- 1.59%
- 6M
- 13.30%
- YTD
- 15.70%
- 1Y
- 28.06%
- 3Y*
- 18.76%
- 5Y*
- 11.46%
- 10Y*
- —
USMV
- 1D
- 0.06%
- 1M
- 2.16%
- 6M
- 3.87%
- YTD
- 4.64%
- 1Y
- 7.10%
- 3Y*
- 11.43%
- 5Y*
- 7.16%
- 10Y*
- 9.58%
RAFE vs. USMV - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
RAFE PIMCO RAFI ESG U.S. ETF | 15.70% | 17.60% | 13.81% | 18.80% | -13.76% | 30.16% | 5.29% | 0.43% |
USMV iShares MSCI USA Min Vol Factor ETF | 4.64% | 7.65% | 15.74% | 10.33% | -9.43% | 20.85% | 5.64% | 1.14% |
Correlation
The correlation between RAFE and USMV is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.77 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.81 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2019 | 0.80 |
The correlation between RAFE and USMV shifts across timeframes, from 0.67 (1 year) to 0.81 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
RAFE vs. USMV — Risk / Return Rank
RAFE
USMV
RAFE vs. USMV - 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 Min Vol Factor ETF (USMV). 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.
| RAFE | USMV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.65 | ||
| Sortino ratioReturn per unit of downside risk | +2.25 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.15 | +0.30 |
| Calmar ratioReturn relative to maximum drawdown | 3.78 | 1.10 | +2.68 |
| Martin ratioReturn relative to average drawdown | 14.72 | 3.61 | +11.11 |
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Drawdowns
RAFE vs. USMV - Drawdown Comparison
The maximum RAFE drawdown since its inception was -35.74%, which is greater than USMV's maximum drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for RAFE and USMV.
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Drawdown Indicators
| RAFE | USMV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.74% | -33.10% | -2.64% |
Max Drawdown (1Y)Largest decline over 1 year | -7.46% | -6.46% | -1.00% |
Max Drawdown (3Y)Largest decline over 3 years | -16.36% | -9.36% | -7.00% |
Max Drawdown (5Y)Largest decline over 5 years | -24.28% | -17.93% | -6.35% |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.10% | — |
Current DrawdownCurrent decline from peak | -0.06% | -0.54% | +0.48% |
Average DrawdownAverage peak-to-trough decline | -6.13% | -2.87% | -3.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.91% | 1.97% | -0.06% |
Volatility
RAFE vs. USMV - Volatility Comparison
PIMCO RAFI ESG U.S. ETF (RAFE) has a higher volatility of 2.78% compared to iShares MSCI USA Min Vol Factor ETF (USMV) at 2.54%. This indicates that RAFE's price experiences larger fluctuations and is considered to be riskier than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| RAFE | USMV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.78% | 2.54% | +0.24% |
Volatility (6M)Calculated over the trailing 6-month period | 8.59% | 6.22% | +2.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 11.34% | 8.48% | +2.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.07% | 12.36% | +2.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.33% | 14.49% | +4.84% |
RAFE vs. USMV - Expense Ratio Comparison
RAFE has a 0.30% expense ratio, which is higher than USMV's 0.15% expense ratio.
Dividends
RAFE vs. USMV - Dividend Comparison
RAFE's dividend yield for the trailing twelve months is around 1.49%, which matches USMV's 1.48% 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% |
USMV iShares MSCI USA Min Vol Factor ETF | 1.48% | 1.49% | 1.67% | 1.82% | 1.62% | 1.26% | 1.81% | 1.88% | 2.12% | 1.77% | 2.22% | 2.02% |
Frequently Asked Questions
RAFE and USMV have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
RAFE has higher volatility (2.78%) compared to USMV (2.54%). In terms of maximum drawdown, RAFE dropped -35.74% vs USMV's -33.10%.
On 5-year performance, RAFE leads with 11.46% vs 7.16% for USMV. On fees, USMV is cheaper at 0.15% per year. On volatility, USMV has been the lower-risk option at 2.54%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, RAFE has performed better with a 11.46% return vs 7.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USMV is cheaper with a 0.15% expense ratio, compared with 0.30% for RAFE.
RAFE and USMV have nearly identical dividend yields, around 1.49%.
RAFE tracks RAFI ESG US Index, while USMV tracks MSCI USA Minimum Volatility Index. They also come from different issuers: PIMCO and iShares. Their fees differ too: 0.30% for RAFE and 0.15% for USMV.
RAFE currently has the higher Sharpe Ratio (2.49 vs 0.84), 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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