EFAA vs VYM
Invesco MSCI EAFE Income Advantage ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. EFAA offers more diversification with 708 holdings.
Side-by-Side Comparison
| Metric | EFAA | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.04% | |
| AUM | $644M | $81.6B | |
| Dividend Yield | 8.11% | 2.24% | |
| Holdings | 708 | 616 | |
| YTD Return | +9.76% | +15.75% | |
| 1Y Return | +17.17% | +23.85% | |
| 3Y Return (annualized) | - | +19.14% | |
| 5Y Return (annualized) | - | +12.45% | |
| Volatility (annualized) | 8.4% | 14.6% | |
| Max Drawdown | -12.0% | -58.8% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 17, 2024 | Nov 10, 2006 |
EFAA vs VYM Performance
Invesco MSCI EAFE Income Advantage ETF (EFAA) is a ETF from Invesco (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EFAA returned +17.17% while VYM returned +23.85%. Year to date, EFAA is up 9.76% versus a gain of 15.75% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFAA charges 0.39% per year while VYM charges 0.04%. On a $10,000 position that is $39 vs $4 annually, a gap of $35 per year that compounds over a long holding period. On income, EFAA currently yields 8.11% against 2.24% for VYM.
Holdings Overlap
EFAA and VYM share 5 holdings out of 1238 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 VYM?
EFAA has an expense ratio of 0.39% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, EFAA or VYM?
Over the past year EFAA returned +17.17% vs +23.85% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), EFAA annualized +15.23% vs +7.06% for VYM. Past performance does not guarantee future results.
Which is riskier, EFAA or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 8.4% for EFAA. Worst drawdown: EFAA -12.0% vs VYM -58.8%.
Should I hold both EFAA and VYM?
EFAA and VYM have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFAA and VYM?
EFAA and VYM share 5 common holdings with a 0.5% weight overlap. Combined, they hold 1238 unique securities.
Which pays a higher dividend, EFAA or VYM?
EFAA yields 8.11% while VYM yields 2.24%, so EFAA currently pays the higher dividend yield.
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