VSLU vs. RAFE

Last updated Jun 25, 2026

VSLU (Applied Finance Valuation Large Cap US ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds. VSLU is actively managed, while RAFE is passively managed. Over the past 5 years, VSLU returned 13.00%/yr vs 11.13%/yr for RAFE. Their correlation of 0.86 suggests significant overlap in exposure. VSLU charges 0.49%/yr vs 0.30%/yr for RAFE.

Performance

VSLU vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Applied Finance Valuation Large Cap US ETF (VSLU) 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, VSLU achieves a 2.76% return, which is significantly lower than RAFE's 13.50% return.

VSLU

• 1D: -0.01%
• 1M: -2.52%
• YTD: 2.76%
• 6M: 1.66%
• 1Y: 19.37%
• 3Y*: 19.84%
• 5Y*: 13.00%
• 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)

VSLU vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VSLU Applied Finance Valuation Large Cap US ETF	2.76%	21.52%	23.80%	26.79%	-16.05%	14.11%
RAFE PIMCO RAFI ESG U.S. ETF	13.50%	17.60%	13.81%	18.80%	-13.76%	10.63%

Correlation

The correlation between VSLU and RAFE is 0.74, 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	0.74
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (All Time) Calculated using the full available price history since Apr 30, 2021	0.86

The correlation between VSLU and RAFE shifts across timeframes, from 0.74 (1 year) to 0.86 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

VSLU vs. RAFE — Risk / Return Rank

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

VSLU

VSLU Risk / Return Rank: 51
VSLU Sharpe Ratio Rank: 50
VSLU Sortino Ratio Rank: 48
VSLU Omega Ratio Rank: 48
VSLU Calmar Ratio Rank: 48
VSLU Martin Ratio Rank: 58

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.

VSLU vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Applied Finance Valuation Large Cap US ETF (VSLU) 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.

	VSLU	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.54	2.48	-0.94
Sortino ratio: Return per unit of downside risk	2.14	3.46	-1.32
Omega ratio: Gain probability vs. loss probability	1.27	1.44	-0.17
Calmar ratio: Return relative to maximum drawdown	2.13	3.81	-1.69
Martin ratio: Return relative to average drawdown	8.97	14.74	-5.76

VSLU vs. RAFE - Sharpe Ratio Comparison

The current VSLU Sharpe Ratio is 1.54, which is lower than the RAFE Sharpe Ratio of 2.48. The chart below compares the historical Sharpe Ratios of VSLU 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

VSLU vs. RAFE - Drawdown Comparison

The maximum VSLU drawdown since its inception was -23.86%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for VSLU and RAFE.

Drawdown Indicators

	VSLU	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-23.86%	-35.74%	+11.88%
Max Drawdown (1Y) Largest decline over 1 year	-9.16%	-7.46%	-1.70%
Max Drawdown (3Y) Largest decline over 3 years	-17.89%	-16.36%	-1.53%
Max Drawdown (5Y) Largest decline over 5 years	-23.86%	-24.28%	+0.42%
Current Drawdown Current decline from peak	-4.10%	-1.21%	-2.89%
Average Drawdown Average peak-to-trough decline	-4.86%	-6.17%	+1.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.16%	1.93%	+0.23%

Volatility

VSLU vs. RAFE - Volatility Comparison

Applied Finance Valuation Large Cap US ETF (VSLU) and PIMCO RAFI ESG U.S. ETF (RAFE) have volatilities of 3.70% and 3.71%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSLU	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.70%	3.71%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	9.71%	8.70%	+1.01%
Volatility (1Y) Calculated over the trailing 1-year period	12.71%	11.51%	+1.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.23%	15.10%	+1.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.12%	19.39%	-3.27%

VSLU vs. RAFE - Expense Ratio Comparison

VSLU has a 0.49% expense ratio, which is higher than RAFE's 0.30% expense ratio.

Dividends

VSLU vs. RAFE - Dividend Comparison

VSLU's dividend yield for the trailing twelve months is around 0.45%, 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%
VSLU Applied Finance Valuation Large Cap US ETF	0.45%	0.46%	0.60%	0.60%	0.99%	0.57%	0.00%

Frequently Asked Questions

Can I hold both VSLU and RAFE in my portfolio?

VSLU and RAFE have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSLU or RAFE?

RAFE has higher volatility (3.71%) compared to VSLU (3.70%). In terms of maximum drawdown, VSLU dropped -23.86% vs RAFE's -35.74%.

Which ETF is better, VSLU or RAFE?

On 5-year performance, VSLU leads with 13.00% vs 11.13% for RAFE. On fees, RAFE is cheaper at 0.30% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VSLU or RAFE?

Over the 5-year period, VSLU has performed better with a 13.00% return vs 11.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VSLU or RAFE?

RAFE is cheaper with a 0.30% expense ratio, compared with 0.49% for VSLU.

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

RAFE has the higher dividend yield at 1.50%, compared with 0.45% for VSLU.

What is the main difference between VSLU and RAFE?

They also come from different issuers: Applied Finance and PIMCO. Their fees differ too: 0.49% for VSLU and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.48 vs 1.54), 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.