USPX vs. RAFE

Last updated Jul 14, 2026

USPX (Franklin U.S. Equity Index ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - USPX tracks the Morningstar US Target Market Exposure Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 5 years, USPX returned 11.98%/yr vs 11.46%/yr for RAFE. Their correlation of 0.86 suggests significant overlap in exposure. USPX charges 0.03%/yr vs 0.30%/yr for RAFE.

Performance

USPX vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin U.S. Equity Index ETF (USPX) 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, USPX achieves a 10.16% return, which is significantly lower than RAFE's 15.70% return.

USPX

• 1D: -0.76%
• 1M: 1.32%
• 6M: 8.11%
• YTD: 10.16%
• 1Y: 20.97%
• 3Y*: 20.10%
• 5Y*: 11.98%
• 10Y*: 12.30%

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)

USPX vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
USPX Franklin U.S. Equity Index ETF	10.16%	17.78%	24.97%	27.07%	-18.88%	19.53%	9.72%	0.87%
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 USPX 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 (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Dec 19, 2019	0.86

The correlation between USPX and RAFE has been stable across timeframes, ranging from 0.79 to 0.89 - a consistent structural relationship.

Return for Risk

USPX vs. RAFE — Risk / Return Rank

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

USPX

USPX Risk / Return Rank: 63
USPX Sharpe Ratio Rank: 63
USPX Sortino Ratio Rank: 62
USPX Omega Ratio Rank: 62
USPX Calmar Ratio Rank: 58
USPX Martin Ratio Rank: 69

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.

USPX vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin U.S. Equity Index ETF (USPX) 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.

	USPX	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.66	2.49	-0.83
Sortino ratio: Return per unit of downside risk	2.29	3.48	-1.19
Omega ratio: Gain probability vs. loss probability	1.30	1.45	-0.15
Calmar ratio: Return relative to maximum drawdown	2.30	3.78	-1.48
Martin ratio: Return relative to average drawdown	9.87	14.72	-4.85

USPX vs. RAFE - Sharpe Ratio Comparison

The current USPX Sharpe Ratio is 1.66, which is lower than the RAFE Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of USPX 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

USPX vs. RAFE - Drawdown Comparison

The maximum USPX 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 USPX and RAFE.

Drawdown Indicators

	USPX	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-31.21%	-35.74%	+4.53%
Max Drawdown (1Y) Largest decline over 1 year	-9.15%	-7.46%	-1.69%
Max Drawdown (3Y) Largest decline over 3 years	-19.21%	-16.36%	-2.85%
Max Drawdown (5Y) Largest decline over 5 years	-24.60%	-24.28%	-0.32%
Max Drawdown (10Y) Largest decline over 10 years	-31.21%	—	—
Current Drawdown Current decline from peak	-1.19%	-0.06%	-1.13%
Average Drawdown Average peak-to-trough decline	-4.42%	-6.13%	+1.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.13%	1.91%	+0.22%

Volatility

USPX vs. RAFE - Volatility Comparison

Franklin U.S. Equity Index ETF (USPX) has a higher volatility of 3.95% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 2.78%. This indicates that USPX'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

	USPX	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.95%	2.78%	+1.17%
Volatility (6M) Calculated over the trailing 6-month period	10.14%	8.59%	+1.55%
Volatility (1Y) Calculated over the trailing 1-year period	12.74%	11.34%	+1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.28%	15.07%	+1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.95%	19.33%	-3.38%

USPX vs. RAFE - Expense Ratio Comparison

USPX has a 0.03% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

USPX vs. RAFE - Dividend Comparison

USPX's dividend yield for the trailing twelve months is around 1.09%, less than RAFE's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
USPX Franklin U.S. Equity Index ETF	1.09%	1.07%	1.23%	1.35%	2.21%	2.40%	2.51%	3.07%	2.91%	2.60%	4.89%

Frequently Asked Questions

Can I hold both USPX and RAFE in my portfolio?

USPX 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, USPX or RAFE?

USPX has higher volatility (3.95%) compared to RAFE (2.78%). In terms of maximum drawdown, USPX dropped -31.21% vs RAFE's -35.74%.

Which ETF is better, USPX or RAFE?

On 5-year performance, USPX leads with 11.98% vs 11.46% for RAFE. On fees, USPX is cheaper at 0.03% 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, USPX or RAFE?

Over the 5-year period, USPX has performed better with a 11.98% return vs 11.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USPX or RAFE?

USPX is cheaper with a 0.03% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.49%, compared with 1.09% for USPX.

What is the main difference between USPX and RAFE?

USPX tracks Morningstar US Target Market Exposure Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Franklin Templeton and PIMCO. Their fees differ too: 0.03% for USPX and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.49 vs 1.66), 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.