XMAG vs. RAFE

Last updated Jun 26, 2026

XMAG (Defiance Large Cap ex-Mag 7 ETF) and RAFE (PIMCO RAFI ESG U.S. ETF) are both Large Cap Blend Equities funds - XMAG tracks the BITA US 500 ex Magnificent 7 Index while RAFE tracks the RAFI ESG US Index. Both are passively managed. Over the past year, XMAG returned 24.56% vs 29.28% for RAFE. Their correlation of 0.92 suggests significant overlap in exposure. XMAG charges 0.35%/yr vs 0.30%/yr for RAFE.

Performance

XMAG vs. RAFE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Defiance Large Cap ex-Mag 7 ETF (XMAG) and PIMCO RAFI ESG U.S. ETF (RAFE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with XMAG having a 14.15% return and RAFE slightly lower at 14.01%.

XMAG

• 1D: 1.18%
• 1M: 3.37%
• YTD: 14.15%
• 6M: 13.13%
• 1Y: 24.56%
• 3Y*: —
• 5Y*: —
• 10Y*: —

RAFE

• 1D: 0.45%
• 1M: 2.36%
• YTD: 14.01%
• 6M: 12.80%
• 1Y: 29.28%
• 3Y*: 19.26%
• 5Y*: 11.23%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

XMAG vs. RAFE - Yearly Performance Comparison

	2026 (YTD)	2025	2024
XMAG Defiance Large Cap ex-Mag 7 ETF	14.15%	15.63%	-1.52%
RAFE PIMCO RAFI ESG U.S. ETF	14.01%	17.60%	-1.65%

Correlation

The correlation between XMAG and RAFE is 0.91, 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	0.91
Correlation (All Time) Calculated using the full available price history since Oct 22, 2024	0.92

The correlation between XMAG and RAFE has been stable across timeframes, ranging from 0.91 to 0.92 - a consistent structural relationship.

Return for Risk

XMAG vs. RAFE — Risk / Return Rank

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

XMAG

XMAG Risk / Return Rank: 78
XMAG Sharpe Ratio Rank: 77
XMAG Sortino Ratio Rank: 78
XMAG Omega Ratio Rank: 73
XMAG Calmar Ratio Rank: 76
XMAG Martin Ratio Rank: 84

RAFE

RAFE Risk / Return Rank: 86
RAFE Sharpe Ratio Rank: 89
RAFE Sortino Ratio Rank: 89
RAFE Omega Ratio Rank: 86
RAFE Calmar Ratio Rank: 83
RAFE Martin Ratio Rank: 84

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.

XMAG vs. RAFE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Defiance Large Cap ex-Mag 7 ETF (XMAG) 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.

	XMAG	RAFE	Difference
Sharpe ratio: Return per unit of total volatility	2.12	2.57	-0.45
Sortino ratio: Return per unit of downside risk	3.01	3.57	-0.56
Omega ratio: Gain probability vs. loss probability	1.37	1.46	-0.09
Calmar ratio: Return relative to maximum drawdown	3.38	3.94	-0.56
Martin ratio: Return relative to average drawdown	14.86	15.24	-0.38

XMAG vs. RAFE - Sharpe Ratio Comparison

The current XMAG Sharpe Ratio is 2.12, which is comparable to the RAFE Sharpe Ratio of 2.57. The chart below compares the historical Sharpe Ratios of XMAG 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

XMAG vs. RAFE - Drawdown Comparison

The maximum XMAG drawdown since its inception was -16.17%, smaller than the maximum RAFE drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for XMAG and RAFE.

Drawdown Indicators

	XMAG	RAFE	Difference
Max Drawdown Largest peak-to-trough decline	-16.17%	-35.74%	+19.57%
Max Drawdown (1Y) Largest decline over 1 year	-7.29%	-7.46%	+0.17%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.36%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.28%	—
Current Drawdown Current decline from peak	0.00%	-0.76%	+0.76%
Average Drawdown Average peak-to-trough decline	-2.08%	-6.17%	+4.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.66%	1.93%	-0.27%

Volatility

XMAG vs. RAFE - Volatility Comparison

Defiance Large Cap ex-Mag 7 ETF (XMAG) has a higher volatility of 4.44% compared to PIMCO RAFI ESG U.S. ETF (RAFE) at 3.72%. This indicates that XMAG'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

	XMAG	RAFE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.44%	3.72%	+0.72%
Volatility (6M) Calculated over the trailing 6-month period	9.25%	8.70%	+0.55%
Volatility (1Y) Calculated over the trailing 1-year period	11.67%	11.46%	+0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.18%	15.09%	+0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.18%	19.38%	-4.20%

XMAG vs. RAFE - Expense Ratio Comparison

XMAG has a 0.35% expense ratio, which is higher than RAFE's 0.30% expense ratio.

Dividends

XMAG vs. RAFE - Dividend Comparison

XMAG's dividend yield for the trailing twelve months is around 0.45%, 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%
XMAG Defiance Large Cap ex-Mag 7 ETF	0.45%	0.51%	0.24%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XMAG and RAFE in my portfolio?

With a correlation of 0.91, XMAG and RAFE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XMAG or RAFE?

XMAG has higher volatility (4.44%) compared to RAFE (3.72%). In terms of maximum drawdown, XMAG dropped -16.17% vs RAFE's -35.74%.

Which ETF is better, XMAG or RAFE?

On 1-year performance, RAFE leads with 29.28% vs 24.56% for XMAG. On fees, RAFE is cheaper at 0.30% per year. On volatility, RAFE has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XMAG or RAFE?

Over the 1-year period, RAFE has performed better with a 29.28% return vs 24.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XMAG or RAFE?

RAFE is cheaper with a 0.30% expense ratio, compared with 0.35% for XMAG.

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

RAFE has the higher dividend yield at 1.49%, compared with 0.45% for XMAG.

What is the main difference between XMAG and RAFE?

XMAG tracks BITA US 500 ex Magnificent 7 Index, while RAFE tracks RAFI ESG US Index. They also come from different issuers: Defiance and PIMCO. Their fees differ too: 0.35% for XMAG and 0.30% for RAFE.

Which has better risk-adjusted returns?

RAFE currently has the higher Sharpe Ratio (2.57 vs 2.12), 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.