VV vs. RAFE

Last updated Jul 14, 2026

VV (Vanguard Large-Cap ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - VV tracks the CRSP US Large Cap Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past 5 years, VV returned 12.62%/yr vs 11.46%/yr for RAFE. Their correlation of 0.86 suggests significant overlap in exposure. VV charges 0.04%/yr vs 0.30%/yr for RAFE.

Performance

VV vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Large-Cap ETF (VV) 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, VV achieves a 10.23% return, which is significantly lower than RAFE's 15.70% return.

VV

• 1D: -0.77%
• 1M: 1.34%
• 6M: 8.23%
• YTD: 10.23%
• 1Y: 21.28%
• 3Y*: 20.34%
• 5Y*: 12.62%
• 10Y*: 15.17%

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)

VV vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VV Vanguard Large-Cap ETF	10.23%	18.11%	25.25%	27.18%	-19.91%	27.41%	21.04%	1.25%
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 VV and RAFE is 0.80, 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	0.80
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 VV and RAFE has been stable across timeframes, ranging from 0.80 to 0.89 - a consistent structural relationship.

Return for Risk

VV vs. RAFE — Risk / Return Rank

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

VV

VV Risk / Return Rank: 64
VV Sharpe Ratio Rank: 64
VV Sortino Ratio Rank: 63
VV Omega Ratio Rank: 63
VV Calmar Ratio Rank: 58
VV 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.

VV vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Large-Cap ETF (VV) 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.

	VV	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	1.69	2.49	-0.80
Sortino ratio: Return per unit of downside risk	2.33	3.48	-1.15
Omega ratio: Gain probability vs. loss probability	1.30	1.45	-0.14
Calmar ratio: Return relative to maximum drawdown	2.32	3.78	-1.46
Martin ratio: Return relative to average drawdown	10.00	14.72	-4.72

VV vs. RAFE - Sharpe Ratio Comparison

The current VV Sharpe Ratio is 1.69, which is lower than the RAFE Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of VV 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

VV vs. RAFE - Drawdown Comparison

The maximum VV drawdown since its inception was -54.81%, which is greater than RAFE's maximum drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for VV and RAFE.

Drawdown Indicators

	VV	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-54.81%	-35.74%	-19.07%
Max Drawdown (1Y) Largest decline over 1 year	-9.21%	-7.46%	-1.75%
Max Drawdown (3Y) Largest decline over 3 years	-18.97%	-16.36%	-2.61%
Max Drawdown (5Y) Largest decline over 5 years	-25.66%	-24.28%	-1.38%
Max Drawdown (10Y) Largest decline over 10 years	-34.28%	—	—
Current Drawdown Current decline from peak	-1.13%	-0.06%	-1.07%
Average Drawdown Average peak-to-trough decline	-6.81%	-6.13%	-0.68%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.13%	1.91%	+0.22%

Volatility

VV vs. RAFE - Volatility Comparison

Vanguard Large-Cap ETF (VV) has a higher volatility of 4.14% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 2.78%. This indicates that VV'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

	VV	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.14%	2.78%	+1.36%
Volatility (6M) Calculated over the trailing 6-month period	10.04%	8.59%	+1.45%
Volatility (1Y) Calculated over the trailing 1-year period	12.71%	11.34%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.34%	15.07%	+2.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.19%	19.33%	-1.14%

VV vs. RAFE - Expense Ratio Comparison

VV has a 0.04% expense ratio, which is lower than RAFE's 0.30% expense ratio.

Dividends

VV vs. RAFE - Dividend Comparison

VV's dividend yield for the trailing twelve months is around 1.02%, less than RAFE's 1.49% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%	0.00%
VV Vanguard Large-Cap ETF	1.02%	1.08%	1.24%	1.41%	1.66%	1.19%	1.46%	1.81%	2.09%	1.75%	1.98%	1.96%

Frequently Asked Questions

Can I hold both VV and RAFE in my portfolio?

VV and RAFE have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VV or RAFE?

VV has higher volatility (4.14%) compared to RAFE (2.78%). In terms of maximum drawdown, VV dropped -54.81% vs RAFE's -35.74%.

Which ETF is better, VV or RAFE?

On 5-year performance, VV leads with 12.62% vs 11.46% for RAFE. On fees, VV is cheaper at 0.04% 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, VV or RAFE?

Over the 5-year period, VV has performed better with a 12.62% return vs 11.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VV or RAFE?

VV is cheaper with a 0.04% expense ratio, compared with 0.30% for RAFE.

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

RAFE has the higher dividend yield at 1.49%, compared with 1.02% for VV.

What is the main difference between VV and RAFE?

VV tracks CRSP US Large Cap Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Vanguard and PIMCO. Their fees differ too: 0.04% for VV and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.49 vs 1.69), 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.