TMFE vs. RAFE

Last updated Jun 25, 2026

TMFE (The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - TMFE tracks the Motley Fool Capital Efficiency 100 Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 3 years, TMFE returned 16.99%/yr vs 19.09%/yr for RAFE. Their correlation of 0.80 suggests significant overlap in exposure. TMFE charges 0.50%/yr vs 0.30%/yr for RAFE.

Performance

TMFE vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) 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, TMFE achieves a -0.93% return, which is significantly lower than RAFE's 13.50% return.

TMFE

• 1D: 0.22%
• 1M: -3.36%
• YTD: -0.93%
• 6M: -1.93%
• 1Y: 4.62%
• 3Y*: 16.99%
• 5Y*: —
• 10Y*: —

RAFE

• 1D: 0.04%
• 1M: 2.27%
• YTD: 13.50%
• 6M: 12.30%
• 1Y: 28.30%
• 3Y*: 19.09%
• 5Y*: 11.13%
• 10Y*: —

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

TMFE vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TMFE The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF	-0.93%	11.10%	27.95%	41.12%	-25.84%	-0.21%
RAFE PIMCO RAFI ESG U.S. ETF	13.50%	17.60%	13.81%	18.80%	-13.76%	-0.33%

Correlation

The correlation between TMFE and RAFE is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (All Time) Calculated using the full available price history since Dec 31, 2021	0.80

The correlation between TMFE and RAFE has been stable across timeframes, ranging from 0.72 to 0.80 - a consistent structural relationship.

Return for Risk

TMFE vs. RAFE — Risk / Return Rank

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

TMFE

TMFE Risk / Return Rank: 14
TMFE Sharpe Ratio Rank: 15
TMFE Sortino Ratio Rank: 13
TMFE Omega Ratio Rank: 13
TMFE Calmar Ratio Rank: 13
TMFE Martin Ratio Rank: 16

RAFE

RAFE Risk / Return Rank: 84
RAFE Sharpe Ratio Rank: 86
RAFE Sortino Ratio Rank: 87
RAFE Omega Ratio Rank: 83
RAFE Calmar Ratio Rank: 81
RAFE Martin Ratio Rank: 83

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.

TMFE vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) 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.

	TMFE	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	0.37	2.48	-2.11
Sortino ratio: Return per unit of downside risk	0.61	3.46	-2.86
Omega ratio: Gain probability vs. loss probability	1.07	1.44	-0.37
Calmar ratio: Return relative to maximum drawdown	0.41	3.81	-3.40
Martin ratio: Return relative to average drawdown	1.50	14.74	-13.24

TMFE vs. RAFE - Sharpe Ratio Comparison

The current TMFE Sharpe Ratio is 0.37, which is lower than the RAFE Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of TMFE 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

TMFE vs. RAFE - Drawdown Comparison

The maximum TMFE drawdown since its inception was -31.21%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for TMFE and RAFE.

Drawdown Indicators

	TMFE	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-31.21%	-35.74%	+4.53%
Max Drawdown (1Y) Largest decline over 1 year	-11.30%	-7.46%	-3.84%
Max Drawdown (3Y) Largest decline over 3 years	-18.81%	-16.36%	-2.45%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-4.17%	-1.21%	-2.96%
Average Drawdown Average peak-to-trough decline	-8.27%	-6.17%	-2.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	1.93%	+1.16%

Volatility

TMFE vs. RAFE - Volatility Comparison

The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF (TMFE) has a higher volatility of 4.33% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 3.71%. This indicates that TMFE'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

	TMFE	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.33%	3.71%	+0.62%
Volatility (6M) Calculated over the trailing 6-month period	9.82%	8.70%	+1.12%
Volatility (1Y) Calculated over the trailing 1-year period	12.51%	11.51%	+1.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.23%	15.10%	+4.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.23%	19.39%	-0.16%

TMFE vs. RAFE - Expense Ratio Comparison

TMFE has a 0.50% expense ratio, which is higher than RAFE's 0.30% expense ratio.

Dividends

TMFE vs. RAFE - Dividend Comparison

TMFE's dividend yield for the trailing twelve months is around 0.32%, less than RAFE's 1.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
RAFE PIMCO RAFI ESG U.S. ETF	1.50%	1.67%	1.79%	1.81%	2.22%	1.42%	2.36%
TMFE The RBB Fund, Inc. - Motley Fool High Capital Efficiency Index ETF	0.32%	0.32%	0.44%	0.45%	0.40%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TMFE and RAFE in my portfolio?

TMFE and RAFE have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TMFE or RAFE?

TMFE has higher volatility (4.33%) compared to RAFE (3.71%). In terms of maximum drawdown, TMFE dropped -31.21% vs RAFE's -35.74%.

Which ETF is better, TMFE or RAFE?

On 3-year performance, RAFE leads with 19.09% vs 16.99% for TMFE. On fees, RAFE is cheaper at 0.30% per year. On volatility, RAFE has been the lower-risk option at 3.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TMFE or RAFE?

Over the 3-year period, RAFE has performed better with a 19.09% return vs 16.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TMFE or RAFE?

RAFE is cheaper with a 0.30% expense ratio, compared with 0.50% for TMFE.

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

RAFE has the higher dividend yield at 1.50%, compared with 0.32% for TMFE.

What is the main difference between TMFE and RAFE?

TMFE tracks Motley Fool Capital Efficiency 100 Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: RBB Fund and PIMCO. Their fees differ too: 0.50% for TMFE and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.48 vs 0.37), 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.