RAFE vs. VTI

Last updated Jun 3, 2026

RAFE (PIMCO RAFI ESG U.S. ETF) and VTI (Vanguard Total Stock Market ETF) are both Large Cap Blend Equities funds - RAFE tracks the RAFI ESG US Index while VTI tracks the CRSP US Total Market Index. Both are passively managed. Over the past 5 years, RAFE returned 10.92%/yr vs 13.05%/yr for VTI. Their correlation of 0.88 suggests significant overlap in exposure. RAFE charges 0.30%/yr vs 0.03%/yr for VTI.

Performance

RAFE vs. VTI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PIMCO RAFI ESG U.S. ETF (RAFE) and Vanguard Total Stock Market ETF (VTI). 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 VTI's 12.01% return.

RAFE

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

VTI

• 1D: 0.26%
• 1M: 5.37%
• YTD: 12.01%
• 6M: 12.40%
• 1Y: 30.01%
• 3Y*: 22.37%
• 5Y*: 13.05%
• 10Y*: 15.13%

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

RAFE vs. VTI - 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%
VTI Vanguard Total Stock Market ETF	12.01%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	0.71%

Correlation

The correlation between RAFE and VTI 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	0.88
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (All Time) Calculated using the full available price history since Dec 20, 2019	0.88

The correlation between RAFE and VTI has been stable across timeframes, ranging from 0.85 to 0.90 - a consistent structural relationship.

RAFE vs. VTI - Sectors Allocation Comparison

Sectors	RAFE	VTI
Technology	29.8%	33.5%
Healthcare	23.1%	9.2%
Financial Services	13.3%	12.0%
Consumer Defensive	7.7%	4.7%
Communication Services	7.2%	10.3%
Consumer Cyclical	6.5%	10.0%
Industrials	5.0%	9.8%
Basic Materials	4.2%	2.0%
Real Estate	2.7%	2.4%
Utilities	0.6%	2.3%
Energy	-	3.7%

Return for Risk

RAFE vs. VTI — 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

VTI

VTI Risk / Return Rank: 74
VTI Sharpe Ratio Rank: 75
VTI Sortino Ratio Rank: 74
VTI Omega Ratio Rank: 74
VTI Calmar Ratio Rank: 68
VTI Martin Ratio Rank: 80

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. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PIMCO RAFI ESG U.S. ETF (RAFE) and Vanguard Total Stock Market ETF (VTI). 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	VTI	Difference
Sharpe ratio Return per unit of total volatility	2.93	2.48	+0.45
Sortino ratio Return per unit of downside risk	4.06	3.37	+0.69
Omega ratio Gain probability vs. loss probability	1.52	1.45	+0.07
Calmar ratio Return relative to maximum drawdown	4.42	3.44	+0.98
Martin ratio Return relative to average drawdown	17.30	15.88	+1.42
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. VTI - Sharpe Ratio Comparison

The current RAFE Sharpe Ratio is 2.93, which is comparable to the VTI Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of RAFE and VTI, 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	VTI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	2.48	+0.45
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.75	-0.03
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	0.51	+0.14

Drawdowns

RAFE vs. VTI - Drawdown Comparison

The maximum RAFE drawdown since its inception was -35.74%, smaller than the maximum VTI drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for RAFE and VTI.

Drawdown Indicators

	RAFE	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-35.74%	-55.45%	+19.71%
Max Drawdown (1Y) Largest decline over 1 year	-7.46%	-8.92%	+1.46%
Max Drawdown (3Y) Largest decline over 3 years	-16.36%	-19.30%	+2.94%
Max Drawdown (5Y) Largest decline over 5 years	-24.28%	-25.36%	+1.08%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.00%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.22%	-8.03%	+1.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.91%	1.93%	-0.02%

Volatility

RAFE vs. VTI - Volatility Comparison

PIMCO RAFI ESG U.S. ETF (RAFE) has a higher volatility of 3.01% compared to Vanguard Total Stock Market ETF (VTI) at 2.86%. This indicates that RAFE's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RAFE	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.01%	2.86%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	8.27%	9.11%	-0.84%
Volatility (1Y) Calculated over the trailing 1-year period	11.33%	12.15%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.08%	17.40%	-2.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.44%	18.30%	+1.14%

RAFE vs. VTI - Expense Ratio Comparison

RAFE has a 0.30% expense ratio, which is higher than VTI's 0.03% expense ratio.

Dividends

RAFE vs. VTI - Dividend Comparison

RAFE's dividend yield for the trailing twelve months is around 1.49%, more than VTI's 1.01% 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%
VTI Vanguard Total Stock Market ETF	1.01%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both RAFE and VTI in my portfolio?

RAFE and VTI 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.

Which is riskier, RAFE or VTI?

RAFE has higher volatility (3.01%) compared to VTI (2.86%). In terms of maximum drawdown, RAFE dropped -35.74% vs VTI's -55.45%.

Which ETF is better, RAFE or VTI?

On 5-year performance, VTI leads with 13.05% vs 10.92% for RAFE. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 2.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RAFE or VTI?

Over the 5-year period, VTI has performed better with a 13.05% 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 VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.49%, compared with 1.01% for VTI.

What is the main difference between RAFE and VTI?

RAFE tracks RAFI ESG US Index, while VTI tracks CRSP US Total Market Index. They also come from different issuers: PIMCO and Vanguard. Their fees differ too: 0.30% for RAFE and 0.03% for VTI.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.93 vs 2.48), 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.