EAFG vs VYM

EAFG vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricEAFGVYMWinner
Expense Ratio0.65%0.04%
AUM$2M$81.6B
Dividend Yield2.03%2.24%
Holdings108616
YTD Return+10.01%+15.75%
1Y Return+20.17%+23.85%
3Y Return (annualized)-+19.14%
5Y Return (annualized)-+12.45%
Volatility (annualized)15.8%14.6%
Max Drawdown-16.5%-58.8%
Fund FamilyPacer ETFsVanguard (US)
CategoryEquityEquity
InceptionMar 20, 2024Nov 10, 2006

EAFG vs VYM Performance

Pacer Developed Markets Cash Cows Growth Leaders ETF (EAFG) is a ETF from Pacer ETFs and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EAFG returned +20.17% while VYM returned +23.85%. Year to date, EAFG is up 10.01% versus a gain of 15.75% for VYM.

Risk: Volatility and Drawdowns

EAFG has been the more volatile fund, with annualized monthly volatility of 15.8% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -16.5% for EAFG and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EAFG charges 0.65% per year while VYM charges 0.04%. On a $10,000 position that is $65 vs $4 annually, a gap of $61 per year that compounds over a long holding period. On income, EAFG currently yields 2.03% against 2.24% for VYM.

Holdings Overlap

0.0%overlap

EAFG and VYM share 0 holdings out of 706 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, EAFG or VYM?

EAFG has an expense ratio of 0.65% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $61 per year of difference.

Which performed better, EAFG or VYM?

Over the past year EAFG returned +20.17% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), EAFG annualized +12.13% vs +7.06% for VYM. Past performance does not guarantee future results.

Which is riskier, EAFG or VYM?

EAFG has been the more volatile fund at 15.8% annualized versus 14.6% for VYM. Worst drawdown: EAFG -16.5% vs VYM -58.8%.

Should I hold both EAFG and VYM?

EAFG and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EAFG and VYM?

EAFG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 706 unique securities.

Which pays a higher dividend, EAFG or VYM?

EAFG yields 2.03% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.

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