EFAA vs VTI
Invesco MSCI EAFE Income Advantage ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | EFAA | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.03% | |
| AUM | $644M | $666.9B | |
| Dividend Yield | 8.11% | 1.07% | |
| Holdings | 708 | 3,543 | |
| YTD Return | +9.76% | +13.38% | |
| 1Y Return | +17.17% | +21.12% | |
| 3Y Return (annualized) | - | +21.85% | |
| 5Y Return (annualized) | - | +12.44% | |
| Volatility (annualized) | 8.4% | 15.3% | |
| Max Drawdown | -12.0% | -56.6% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 17, 2024 | May 24, 2001 |
EFAA vs VTI Performance
Invesco MSCI EAFE Income Advantage ETF (EFAA) is a ETF from Invesco (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year EFAA returned +17.17% while VTI returned +21.12%. Year to date, EFAA is up 9.76% versus a gain of 13.38% for VTI.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.4% for EFAA. 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 -12.0% for EFAA and -56.6% for VTI. 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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFAA charges 0.39% per year while VTI charges 0.03%. On a $10,000 position that is $39 vs $3 annually, a gap of $36 per year that compounds over a long holding period. On income, EFAA currently yields 8.11% against 1.07% for VTI.
Holdings Overlap
EFAA and VTI share 6 holdings out of 3421 unique holdings combined, representing a 0.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, EFAA or VTI?
EFAA has an expense ratio of 0.39% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, EFAA or VTI?
Over the past year EFAA returned +17.17% vs +21.12% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (2 years), EFAA annualized +15.23% vs +8.10% for VTI. Past performance does not guarantee future results.
Which is riskier, EFAA or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 8.4% for EFAA. Worst drawdown: EFAA -12.0% vs VTI -56.6%.
Should I hold both EFAA and VTI?
EFAA and VTI have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFAA and VTI?
EFAA and VTI share 6 common holdings with a 0.5% weight overlap. Combined, they hold 3421 unique securities.
Which pays a higher dividend, EFAA or VTI?
EFAA yields 8.11% while VTI yields 1.07%, so EFAA currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.