USCL vs. RAFE

Last updated Jun 25, 2026

USCL (Ishares Climate Conscious & Transition MSCI USA ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - USCL tracks the MSCI USA Extended Climate Action Index - Benchmark TR Gross while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 3 years, USCL returned 18.58%/yr vs 19.09%/yr for RAFE. Their correlation of 0.85 suggests significant overlap in exposure. USCL charges 0.08%/yr vs 0.30%/yr for RAFE.

Performance

USCL vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ishares Climate Conscious & Transition MSCI USA ETF (USCL) 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, USCL achieves a 3.33% return, which is significantly lower than RAFE's 13.50% return.

USCL

• 1D: -0.31%
• 1M: -2.24%
• YTD: 3.33%
• 6M: 1.99%
• 1Y: 13.85%
• 3Y*: 18.58%
• 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)

USCL vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
USCL Ishares Climate Conscious & Transition MSCI USA ETF	3.33%	14.26%	27.04%	12.71%
RAFE PIMCO RAFI ESG U.S. ETF	13.50%	17.60%	13.81%	12.49%

Correlation

The correlation between USCL and RAFE is 0.81, 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	0.81
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jun 8, 2023	0.85

The correlation between USCL and RAFE has been stable across timeframes, ranging from 0.81 to 0.85 - a consistent structural relationship.

Return for Risk

USCL vs. RAFE — Risk / Return Rank

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

USCL

USCL Risk / Return Rank: 32
USCL Sharpe Ratio Rank: 33
USCL Sortino Ratio Rank: 31
USCL Omega Ratio Rank: 32
USCL Calmar Ratio Rank: 30
USCL Martin Ratio Rank: 37

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.

USCL vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ishares Climate Conscious & Transition MSCI USA ETF (USCL) 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.

	USCL	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.10	2.48	-1.38
Sortino ratio: Return per unit of downside risk	1.55	3.46	-1.91
Omega ratio: Gain probability vs. loss probability	1.20	1.44	-0.24
Calmar ratio: Return relative to maximum drawdown	1.36	3.81	-2.45
Martin ratio: Return relative to average drawdown	5.18	14.74	-9.56

USCL vs. RAFE - Sharpe Ratio Comparison

The current USCL Sharpe Ratio is 1.10, which is lower than the RAFE Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of USCL 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

USCL vs. RAFE - Drawdown Comparison

The maximum USCL drawdown since its inception was -19.00%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for USCL and RAFE.

Drawdown Indicators

	USCL	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-19.00%	-35.74%	+16.74%
Max Drawdown (1Y) Largest decline over 1 year	-10.24%	-7.46%	-2.78%
Max Drawdown (3Y) Largest decline over 3 years	-19.00%	-16.36%	-2.64%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-4.29%	-1.21%	-3.08%
Average Drawdown Average peak-to-trough decline	-2.28%	-6.17%	+3.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	1.93%	+0.75%

Volatility

USCL vs. RAFE - Volatility Comparison

Ishares Climate Conscious & Transition MSCI USA ETF (USCL) has a higher volatility of 4.89% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 3.71%. This indicates that USCL'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

	USCL	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.89%	3.71%	+1.18%
Volatility (6M) Calculated over the trailing 6-month period	9.89%	8.70%	+1.19%
Volatility (1Y) Calculated over the trailing 1-year period	12.70%	11.51%	+1.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.93%	15.10%	-0.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.93%	19.39%	-4.46%

USCL vs. RAFE - Expense Ratio Comparison

USCL has a 0.08% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

USCL vs. RAFE - Dividend Comparison

USCL's dividend yield for the trailing twelve months is around 1.13%, 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%
USCL Ishares Climate Conscious & Transition MSCI USA ETF	1.13%	1.10%	1.18%	0.85%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USCL and RAFE in my portfolio?

USCL and RAFE have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USCL or RAFE?

USCL has higher volatility (4.89%) compared to RAFE (3.71%). In terms of maximum drawdown, USCL dropped -19.00% vs RAFE's -35.74%.

Which ETF is better, USCL or RAFE?

On 3-year performance, RAFE leads with 19.09% vs 18.58% for USCL. On fees, USCL is cheaper at 0.08% 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, USCL or RAFE?

Over the 3-year period, RAFE has performed better with a 19.09% return vs 18.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USCL or RAFE?

USCL is cheaper with a 0.08% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.50%, compared with 1.13% for USCL.

What is the main difference between USCL and RAFE?

USCL tracks MSCI USA Extended Climate Action Index - Benchmark TR Gross, while RAFE tracks RAFI ESG US Index. They also come from different issuers: iShares and PIMCO. Their fees differ too: 0.08% for USCL and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.48 vs 1.10), 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.