EFA vs VYM
iShares MSCI EAFE ETF vs Vanguard High Dividend Yield ETF
Which is better, EFA or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. EFA led over 3Y, VYM over 1Y, 5Y and the full window. EFA is less concentrated, with 13.7% of the fund in its ten largest positions against 26.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | EFA | VYM |
|---|---|---|
| Expense Ratio | 0.32% | 0.04%Best |
| AUM | $78.7B | $81.6B |
| Dividend Yield | 3.14% | 2.22% |
| Holdings | 700 | 613 |
| YTD Return | +10.33% | +12.87%Best |
| 1Y Return | +16.45% | +17.25%Best |
| 3Y Return (annualized) | +17.69%Best | +17.66% |
| 5Y Return (annualized) | +8.59% | +11.98%Best |
| Volatility (annualized) | 17.2% | 14.5%Best |
| Max Drawdown | -60.0% | -58.8%Best |
| $10,000 over 5 years | $15,099 | $17,608Best |
| Top 10 Weight | 13.7%Best | 26.1% |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Aug 14, 2001 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Nov 16, 2006 to Sep 15, 2026 (19.8 years).
EFA vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.8 years both funds cover.
EFA vs VYM Performance
iShares MSCI EAFE ETF (EFA) is an ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year EFA returned +16.45% while VYM returned +17.25%. Year to date, EFA is up 10.33% versus a gain of 12.87% for VYM.
Over three years, EFA compounded at +17.69% per year against +17.66% for VYM; over five years the annualized figures are +8.59% and +11.98% respectively. Across the full 20-year window we track, VYM has the edge at +6.90% annualized vs +5.33%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFA has been the more volatile fund, with annualized monthly volatility of 17.2% compared with 14.5% 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 -60.0% for EFA and -58.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
EFA charges 0.32% per year while VYM charges 0.04%. On a $10,000 position that is $32 vs $4 annually, a gap of $28 per year that compounds over a long holding period. On income, EFA currently yields 3.14% against 2.22% for VYM.
Holdings Overlap
0.4% of EFA's money is in holdings VYM also owns. 1.4% of VYM's money is in holdings EFA also owns.
VYM and EFA share little of their money.
3 positions in common, counted across the 631 positions we hold weights for in EFA and 557 in VYM, against full books of 700 and 613.
What only one of them owns
Our book lists 525 positions for VYM that do not appear in our book for EFA (95.6% of the fund), and 14 for EFA that do not appear in VYM (4.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of EFA and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, EFA or VYM?
EFA has an expense ratio of 0.32% while VYM charges 0.04%. VYM is the cheaper option, by $28 a year on a $10,000 investment.
Which performed better, EFA or VYM?
Over the past year EFA returned +16.45% vs +17.25% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), EFA annualized +5.33% vs +6.90% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, EFA or VYM?
EFA has been the more volatile fund at 17.2% annualized versus 14.5% for VYM. Worst drawdown: EFA -60.0% vs VYM -58.8%.
Should I hold both EFA and VYM?
EFA and VYM have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between EFA and VYM?
1.4% of VYM's money is in holdings EFA also owns. 1.4% of VYM's is in holdings EFA also owns. They hold 3 positions in common, counted across the 631 positions we hold weights for in EFA and 557 in VYM.
Which pays a higher dividend, EFA or VYM?
EFA yields 3.14% while VYM yields 2.22%, so EFA currently pays the higher dividend yield.
Is VYM better than EFA?
VYM has a lower expense ratio. EFA led over 3Y, VYM over 1Y, 5Y and the full window. EFA is less concentrated, with 13.7% of the fund in its ten largest positions against 26.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.