EFFE vs VYM
Harbor Osmosis Emerging Markets Resource Efficient ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. EFFE delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | EFFE | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.04% | |
| AUM | $146M | $81.6B | |
| Dividend Yield | 4.13% | 2.24% | |
| Holdings | 99 | 616 | |
| YTD Return | +19.97% | +16.42% | |
| 1Y Return | +27.05% | +24.22% | |
| 3Y Return (annualized) | - | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 19.4% | 14.6% | |
| Max Drawdown | -16.3% | -58.8% | |
| Fund Family | Harbor Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 17, 2024 | Nov 10, 2006 |
EFFE vs VYM Performance
Harbor Osmosis Emerging Markets Resource Efficient ETF (EFFE) is a ETF from Harbor Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EFFE returned +27.05% while VYM returned +24.22%. Year to date, EFFE is up 19.97% versus a gain of 16.42% for VYM.
Risk: Volatility and Drawdowns
EFFE has been the more volatile fund, with annualized monthly volatility of 19.4% 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 -16.3% for EFFE 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFFE charges 0.69% per year while VYM charges 0.04%. On a $10,000 position that is $69 vs $4 annually, a gap of $65 per year that compounds over a long holding period. On income, EFFE currently yields 4.13% against 2.24% for VYM.
Holdings Overlap
EFFE and VYM share 1 holdings out of 678 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in EFFE | Weight in VYM | Difference |
|---|---|---|---|
| BAP | 0.31% | 0.11% | 0.20% |
Frequently Asked Questions
Which is cheaper, EFFE or VYM?
EFFE has an expense ratio of 0.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $65 per year of difference.
Which performed better, EFFE or VYM?
Over the past year EFFE returned +27.05% vs +24.22% for VYM, so EFFE leads on 1-year performance. Over the longest common window we track (2 years), EFFE annualized +27.02% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, EFFE or VYM?
EFFE has been the more volatile fund at 19.4% annualized versus 14.6% for VYM. Worst drawdown: EFFE -16.3% vs VYM -58.8%.
Should I hold both EFFE and VYM?
EFFE and VYM have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFFE and VYM?
EFFE and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 678 unique securities.
Which pays a higher dividend, EFFE or VYM?
EFFE yields 4.13% while VYM yields 2.24%, so EFFE currently pays the higher dividend yield.
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