RWLC vs. RAFE

Last updated Jul 14, 2026

RWLC (Rayliant Wilshire NxtGen US Large Cap Equity ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - RWLC tracks the S&P 500 while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 3 years, RWLC returned 22.57%/yr vs 18.76%/yr for RAFE. A 0.77 correlation means they provide meaningful diversification when combined. RWLC charges 0.32%/yr vs 0.30%/yr for RAFE.

Performance

RWLC vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Rayliant Wilshire NxtGen US Large Cap Equity ETF (RWLC) and PIMCO RAFI ESG U.S. ETF (RAFE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RWLC achieves a 13.37% return, which is significantly lower than RAFE's 15.70% return.

RWLC

• 1D: -0.21%
• 1M: 2.97%
• 6M: 12.19%
• YTD: 13.37%
• 1Y: 20.28%
• 3Y*: 22.57%
• 5Y*: —
• 10Y*: —

RAFE

• 1D: -0.06%
• 1M: 1.59%
• 6M: 13.30%
• YTD: 15.70%
• 1Y: 28.06%
• 3Y*: 18.76%
• 5Y*: 11.46%
• 10Y*: —

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

RWLC vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
RWLC Rayliant Wilshire NxtGen US Large Cap Equity ETF	13.37%	20.23%	28.58%	14.40%	-12.40%	1.69%
RAFE PIMCO RAFI ESG U.S. ETF	15.70%	17.60%	13.81%	18.80%	-13.76%	1.59%

Correlation

The correlation between RWLC and RAFE is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (All Time) Calculated using the full available price history since Dec 16, 2021	0.77

Over the past year, the correlation between RWLC and RAFE has dropped to 0.54 - well below their long-term average of 0.77, suggesting their price drivers have been diverging.

Return for Risk

RWLC vs. RAFE — Risk / Return Rank

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

RWLC

RWLC Risk / Return Rank: 54
RWLC Sharpe Ratio Rank: 51
RWLC Sortino Ratio Rank: 55
RWLC Omega Ratio Rank: 51
RWLC Calmar Ratio Rank: 55
RWLC Martin Ratio Rank: 57

RAFE

RAFE Risk / Return Rank: 89
RAFE Sharpe Ratio Rank: 91
RAFE Sortino Ratio Rank: 91
RAFE Omega Ratio Rank: 89
RAFE Calmar Ratio Rank: 86
RAFE Martin Ratio Rank: 88

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.

RWLC vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Rayliant Wilshire NxtGen US Large Cap Equity ETF (RWLC) 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.

	RWLC	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.39	2.49	-1.10
Sortino ratio: Return per unit of downside risk	2.13	3.48	-1.36
Omega ratio: Gain probability vs. loss probability	1.26	1.45	-0.19
Calmar ratio: Return relative to maximum drawdown	2.18	3.78	-1.60
Martin ratio: Return relative to average drawdown	7.86	14.72	-6.86

RWLC vs. RAFE - Sharpe Ratio Comparison

The current RWLC Sharpe Ratio is 1.39, which is lower than the RAFE Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of RWLC and RAFE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

RWLC vs. RAFE - Drawdown Comparison

The maximum RWLC drawdown since its inception was -21.00%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for RWLC and RAFE.

Drawdown Indicators

	RWLC	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-21.00%	-35.74%	+14.74%
Max Drawdown (1Y) Largest decline over 1 year	-9.33%	-7.46%	-1.87%
Max Drawdown (3Y) Largest decline over 3 years	-16.20%	-16.36%	+0.16%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-0.23%	-0.06%	-0.17%
Average Drawdown Average peak-to-trough decline	-5.34%	-6.13%	+0.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.59%	1.91%	+0.68%

Volatility

RWLC vs. RAFE - Volatility Comparison

Rayliant Wilshire NxtGen US Large Cap Equity ETF (RWLC) has a higher volatility of 4.67% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 2.78%. This indicates that RWLC'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.

Volatility by Period

	RWLC	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.67%	2.78%	+1.89%
Volatility (6M) Calculated over the trailing 6-month period	10.10%	8.59%	+1.51%
Volatility (1Y) Calculated over the trailing 1-year period	14.63%	11.34%	+3.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.49%	15.07%	+1.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.49%	19.33%	-2.84%

RWLC vs. RAFE - Expense Ratio Comparison

RWLC has a 0.32% expense ratio, which is higher than RAFE's 0.30% expense ratio.

Dividends

RWLC vs. RAFE - Dividend Comparison

RWLC's dividend yield for the trailing twelve months is around 12.95%, more than RAFE's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
RAFE PIMCO RAFI ESG U.S. ETF	1.49%	1.67%	1.79%	1.81%	2.22%	1.42%	2.36%
RWLC Rayliant Wilshire NxtGen US Large Cap Equity ETF	12.95%	14.69%	0.98%	1.63%	1.39%	0.01%	0.00%

Frequently Asked Questions

Can I hold both RWLC and RAFE in my portfolio?

RWLC and RAFE have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RWLC or RAFE?

RWLC has higher volatility (4.67%) compared to RAFE (2.78%). In terms of maximum drawdown, RWLC dropped -21.00% vs RAFE's -35.74%.

Which ETF is better, RWLC or RAFE?

On 3-year performance, RWLC leads with 22.57% vs 18.76% for RAFE. On fees, RAFE is cheaper at 0.30% per year. On volatility, RAFE has been the lower-risk option at 2.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RWLC or RAFE?

Over the 3-year period, RWLC has performed better with a 22.57% return vs 18.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RWLC or RAFE?

RAFE is cheaper with a 0.30% expense ratio, compared with 0.32% for RWLC.

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

RWLC has the higher dividend yield at 12.95%, compared with 1.49% for RAFE.

What is the main difference between RWLC and RAFE?

RWLC tracks S&P 500, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Rayliant and PIMCO. Their fees differ too: 0.32% for RWLC and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.49 vs 1.39), 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.