USNZ vs. RAFE

Last updated Jul 14, 2026

USNZ (Xtrackers Net Zero Pathway Paris Aligned US Equity ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - USNZ tracks the Solactive ISS ESG United States Net Zero Pathway Enhanced Index - Benchmark TR Net while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 3 years, USNZ returned 19.04%/yr vs 18.76%/yr for RAFE. Their correlation of 0.87 suggests significant overlap in exposure. USNZ charges 0.10%/yr vs 0.30%/yr for RAFE.

Performance

USNZ vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) 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, USNZ achieves a 10.14% return, which is significantly lower than RAFE's 15.70% return.

USNZ

• 1D: -0.89%
• 1M: 1.58%
• 6M: 8.57%
• YTD: 10.14%
• 1Y: 21.71%
• 3Y*: 19.04%
• 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)

USNZ vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
USNZ Xtrackers Net Zero Pathway Paris Aligned US Equity ETF	10.14%	17.76%	21.96%	27.76%	0.80%
RAFE PIMCO RAFI ESG U.S. ETF	15.70%	17.60%	13.81%	18.80%	0.42%

Correlation

The correlation between USNZ and RAFE is 0.79, 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	0.79
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (All Time) Calculated using the full available price history since Jun 28, 2022	0.87

The correlation between USNZ and RAFE has been stable across timeframes, ranging from 0.79 to 0.87 - a consistent structural relationship.

Return for Risk

USNZ vs. RAFE — Risk / Return Rank

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

USNZ

USNZ Risk / Return Rank: 57
USNZ Sharpe Ratio Rank: 60
USNZ Sortino Ratio Rank: 59
USNZ Omega Ratio Rank: 58
USNZ Calmar Ratio Rank: 49
USNZ Martin Ratio Rank: 59

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.

USNZ vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) 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.

	USNZ	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.59	2.49	-0.90
Sortino ratio: Return per unit of downside risk	2.24	3.48	-1.24
Omega ratio: Gain probability vs. loss probability	1.28	1.45	-0.16
Calmar ratio: Return relative to maximum drawdown	1.97	3.78	-1.81
Martin ratio: Return relative to average drawdown	8.24	14.72	-6.48

USNZ vs. RAFE - Sharpe Ratio Comparison

The current USNZ Sharpe Ratio is 1.59, which is lower than the RAFE Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of USNZ 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

USNZ vs. RAFE - Drawdown Comparison

The maximum USNZ drawdown since its inception was -19.16%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for USNZ and RAFE.

Drawdown Indicators

	USNZ	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-19.16%	-35.74%	+16.58%
Max Drawdown (1Y) Largest decline over 1 year	-11.07%	-7.46%	-3.61%
Max Drawdown (3Y) Largest decline over 3 years	-19.16%	-16.36%	-2.80%
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	-1.38%	-0.06%	-1.32%
Average Drawdown Average peak-to-trough decline	-3.29%	-6.13%	+2.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	1.91%	+0.73%

Volatility

USNZ vs. RAFE - Volatility Comparison

Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (USNZ) has a higher volatility of 4.46% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 2.78%. This indicates that USNZ'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

	USNZ	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	2.78%	+1.68%
Volatility (6M) Calculated over the trailing 6-month period	11.21%	8.59%	+2.62%
Volatility (1Y) Calculated over the trailing 1-year period	13.74%	11.34%	+2.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.63%	15.07%	+1.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.63%	19.33%	-2.70%

USNZ vs. RAFE - Expense Ratio Comparison

USNZ has a 0.10% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

USNZ vs. RAFE - Dividend Comparison

USNZ's dividend yield for the trailing twelve months is around 0.95%, less 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%
USNZ Xtrackers Net Zero Pathway Paris Aligned US Equity ETF	0.95%	1.02%	1.14%	1.19%	0.80%	0.00%	0.00%

Frequently Asked Questions

Can I hold both USNZ and RAFE in my portfolio?

USNZ and RAFE have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USNZ or RAFE?

USNZ has higher volatility (4.46%) compared to RAFE (2.78%). In terms of maximum drawdown, USNZ dropped -19.16% vs RAFE's -35.74%.

Which ETF is better, USNZ or RAFE?

On 3-year performance, USNZ leads with 19.04% vs 18.76% for RAFE. On fees, USNZ is cheaper at 0.10% 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, USNZ or RAFE?

Over the 3-year period, USNZ has performed better with a 19.04% return vs 18.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USNZ or RAFE?

USNZ is cheaper with a 0.10% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.49%, compared with 0.95% for USNZ.

What is the main difference between USNZ and RAFE?

USNZ tracks Solactive ISS ESG United States Net Zero Pathway Enhanced Index - Benchmark TR Net, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Xtrackers and PIMCO. Their fees differ too: 0.10% for USNZ and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.49 vs 1.59), 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.