TILT vs. RAFE
TILT (FlexShares Morningstar US Market Factor Tilt Index Fund) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - TILT tracks the Morningstar US Market Factor Tilt Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 5 years, TILT returned 11.68%/yr vs 11.46%/yr for RAFE. Their correlation of 0.92 suggests significant overlap in exposure. TILT charges 0.25%/yr vs 0.30%/yr for RAFE.
Performance
TILT vs. RAFE - Performance Comparison
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Returns By Period
In the year-to-date period, TILT achieves a 11.64% return, which is significantly lower than RAFE's 15.70% return.
TILT
- 1D
- -0.58%
- 1M
- 1.27%
- 6M
- 8.81%
- YTD
- 11.64%
- 1Y
- 22.97%
- 3Y*
- 18.79%
- 5Y*
- 11.68%
- 10Y*
- 13.71%
RAFE
- 1D
- -0.06%
- 1M
- 1.59%
- 6M
- 13.30%
- YTD
- 15.70%
- 1Y
- 28.06%
- 3Y*
- 18.76%
- 5Y*
- 11.46%
- 10Y*
- —
TILT vs. RAFE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
TILT FlexShares Morningstar US Market Factor Tilt Index Fund | 11.64% | 16.59% | 19.88% | 24.70% | -17.25% | 27.61% | 16.05% | 0.99% |
RAFE PIMCO RAFI ESG U.S. ETF | 15.70% | 17.60% | 13.81% | 18.80% | -13.76% | 30.16% | 5.29% | 0.43% |
Correlation
The correlation between TILT and RAFE is 0.89, 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 | 0.89 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.91 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2019 | 0.92 |
The correlation between TILT and RAFE has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.
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Return for Risk
TILT vs. RAFE — Risk / Return Rank
TILT
RAFE
TILT vs. RAFE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) 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.
| TILT | RAFE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.66 | ||
| Sortino ratioReturn per unit of downside risk | -0.93 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.45 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 2.71 | 3.78 | -1.07 |
| Martin ratioReturn relative to average drawdown | 11.64 | 14.72 | -3.08 |
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Drawdowns
TILT vs. RAFE - Drawdown Comparison
The maximum TILT drawdown since its inception was -38.46%, which is greater than RAFE's maximum drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for TILT and RAFE.
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Drawdown Indicators
| TILT | RAFE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.46% | -35.74% | -2.72% |
Max Drawdown (1Y)Largest decline over 1 year | -8.51% | -7.46% | -1.05% |
Max Drawdown (3Y)Largest decline over 3 years | -19.85% | -16.36% | -3.49% |
Max Drawdown (5Y)Largest decline over 5 years | -24.12% | -24.28% | +0.16% |
Max Drawdown (10Y)Largest decline over 10 years | -38.46% | — | — |
Current DrawdownCurrent decline from peak | -0.58% | -0.06% | -0.52% |
Average DrawdownAverage peak-to-trough decline | -4.21% | -6.13% | +1.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.98% | 1.91% | +0.07% |
Volatility
TILT vs. RAFE - Volatility Comparison
FlexShares Morningstar US Market Factor Tilt Index Fund (TILT) has a higher volatility of 3.51% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 2.78%. This indicates that TILT'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.
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Volatility by Period
| TILT | RAFE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.51% | 2.78% | +0.73% |
Volatility (6M)Calculated over the trailing 6-month period | 9.56% | 8.59% | +0.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.63% | 11.34% | +1.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.43% | 15.07% | +2.36% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.69% | 19.33% | -0.64% |
TILT vs. RAFE - Expense Ratio Comparison
TILT has a 0.25% expense ratio, which is lower than RAFE's 0.30% expense ratio.
Dividends
TILT vs. RAFE - Dividend Comparison
TILT's dividend yield for the trailing twelve months is around 1.08%, less than RAFE's 1.49% 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% |
TILT FlexShares Morningstar US Market Factor Tilt Index Fund | 1.08% | 1.15% | 1.23% | 1.44% | 1.60% | 1.16% | 1.49% | 1.54% | 1.97% | 1.55% | 1.60% | 1.98% |
Frequently Asked Questions
TILT and RAFE have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TILT has higher volatility (3.51%) compared to RAFE (2.78%). In terms of maximum drawdown, TILT dropped -38.46% vs RAFE's -35.74%.
On 5-year performance, TILT leads with 11.68% vs 11.46% for RAFE. On fees, TILT is cheaper at 0.25% 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.
Over the 5-year period, TILT has performed better with a 11.68% return vs 11.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TILT is cheaper with a 0.25% expense ratio, compared with 0.30% for RAFE.
RAFE has the higher dividend yield at 1.49%, compared with 1.08% for TILT.
TILT tracks Morningstar US Market Factor Tilt Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: FlexShares and PIMCO. Their fees differ too: 0.25% for TILT and 0.30% for RAFE.
RAFE currently has the higher Sharpe Ratio (2.49 vs 1.83), 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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