TOPC vs. RAFE

Last updated Jul 21, 2026

TOPC (iShares S&P 500 3% Capped ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - TOPC tracks the S&P 500 3% Capped Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past year, TOPC returned 19.27% vs 27.20% for RAFE. Their correlation of 0.86 suggests significant overlap in exposure. TOPC charges 0.09%/yr vs 0.30%/yr for RAFE.

Performance

TOPC vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares S&P 500 3% Capped ETF (TOPC) 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, TOPC achieves a 9.97% return, which is significantly lower than RAFE's 14.48% return.

TOPC

• 1D: -0.41%
• 1M: -1.19%
• 6M: 7.64%
• YTD: 9.97%
• 1Y: 19.27%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 29.40%

RAFE

• 1D: -0.60%
• 1M: 0.79%
• 6M: 12.50%
• YTD: 14.48%
• 1Y: 27.20%
• 3Y*: 17.63%
• 5Y*: 11.25%
• 10Y*: —
• ALL TIME*: 12.41%

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

TOPC vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025
TOPC iShares S&P 500 3% Capped ETF	9.97%	25.80%
RAFE PIMCO RAFI ESG U.S. ETF	14.48%	24.67%

Correlation

The correlation between TOPC and RAFE is 0.86, 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	0.86
Correlation (All Time) Calculated using the full available price history since Apr 16, 2025	0.86

The correlation between TOPC and RAFE has been stable across timeframes, ranging from 0.86 to 0.86 - a consistent structural relationship.

Return for Risk

TOPC vs. RAFE — Risk / Return Rank

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

TOPC

TOPC Risk / Return Rank: 68
TOPC Sharpe Ratio Rank: 67
TOPC Sortino Ratio Rank: 65
TOPC Omega Ratio Rank: 64
TOPC Calmar Ratio Rank: 66
TOPC Martin Ratio Rank: 79

RAFE

RAFE Risk / Return Rank: 90
RAFE Sharpe Ratio Rank: 91
RAFE Sortino Ratio Rank: 91
RAFE Omega Ratio Rank: 90
RAFE Calmar Ratio Rank: 87
RAFE Martin Ratio Rank: 89

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.

TOPC vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares S&P 500 3% Capped ETF (TOPC) 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.

	TOPC	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.61	2.41	-0.80
Sortino ratio: Return per unit of downside risk	2.25	3.39	-1.14
Omega ratio: Gain probability vs. loss probability	1.29	1.43	-0.14
Calmar ratio: Return relative to maximum drawdown	2.41	3.66	-1.26
Martin ratio: Return relative to average drawdown	10.82	14.27	-3.45

TOPC vs. RAFE - Sharpe Ratio Comparison

The current TOPC Sharpe Ratio is 1.61, which is lower than the RAFE Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of TOPC 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

TOPC vs. RAFE - Drawdown Comparison

The maximum TOPC drawdown since its inception was -8.04%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for TOPC and RAFE.

Drawdown Indicators

	TOPC	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-8.04%	-35.74%	+27.70%
Max Drawdown (1Y) Largest decline over 1 year	-8.04%	-7.46%	-0.58%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.36%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-2.21%	-1.12%	-1.09%
Average Drawdown Average peak-to-trough decline	-0.95%	-6.11%	+5.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	1.91%	-0.12%

Volatility

TOPC vs. RAFE - Volatility Comparison

iShares S&P 500 3% Capped ETF (TOPC) has a higher volatility of 3.05% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 1.99%. This indicates that TOPC'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

	TOPC	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.05%	1.99%	+1.06%
Volatility (6M) Calculated over the trailing 6-month period	9.59%	8.65%	+0.94%
Volatility (1Y) Calculated over the trailing 1-year period	12.02%	11.36%	+0.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.41%	15.03%	-2.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.41%	19.30%	-6.89%

TOPC vs. RAFE - Expense Ratio Comparison

TOPC has a 0.09% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

TOPC vs. RAFE - Dividend Comparison

TOPC's dividend yield for the trailing twelve months is around 1.06%, less than RAFE's 1.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
RAFE PIMCO RAFI ESG U.S. ETF	1.51%	1.67%	1.79%	1.81%	2.22%	1.42%	2.36%
TOPC iShares S&P 500 3% Capped ETF	1.06%	0.80%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both TOPC and RAFE in my portfolio?

TOPC and RAFE have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TOPC or RAFE?

TOPC has higher volatility (3.05%) compared to RAFE (1.99%). In terms of maximum drawdown, TOPC dropped -8.04% vs RAFE's -35.74%.

Which ETF is better, TOPC or RAFE?

On 1-year performance, RAFE leads with 27.20% vs 19.27% for TOPC. On fees, TOPC is cheaper at 0.09% per year. On volatility, RAFE has been the lower-risk option at 1.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TOPC or RAFE?

Over the 1-year period, RAFE has performed better with a 27.20% return vs 19.27%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TOPC or RAFE?

TOPC is cheaper with a 0.09% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.51%, compared with 1.06% for TOPC.

What is the main difference between TOPC and RAFE?

TOPC tracks S&P 500 3% Capped Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: iShares and PIMCO. Their fees differ too: 0.09% for TOPC and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.41 vs 1.61), 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.