EFR vs VYM
Eaton Vance Senior Floating-Rate Trust vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | EFR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 5.17% | 0.04% | |
| AUM | $374M | $81.6B | |
| Dividend Yield | 7.72% | 2.24% | |
| Holdings | 511 | 616 | |
| YTD Return | +1.32% | +16.42% | |
| 1Y Return | -0.95% | +24.22% | |
| 3Y Return (annualized) | +5.63% | +19.03% | |
| 5Y Return (annualized) | +3.29% | +12.21% | |
| Volatility (annualized) | 15.0% | 14.6% | |
| Max Drawdown | -66.8% | -58.8% | |
| Fund Family | Eaton Vance | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 24, 2003 | Nov 10, 2006 |
EFR vs VYM Performance
Eaton Vance Senior Floating-Rate Trust (EFR) is a ETF from Eaton Vance and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EFR returned -0.95% while VYM returned +24.22%. Year to date, EFR is up 1.32% versus a gain of 16.42% for VYM.
Over three years, EFR compounded at +5.63% per year against +19.03% for VYM; over five years the annualized figures are +3.29% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.10% annualized vs -0.60%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
EFR has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -66.8% for EFR 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
EFR charges 5.17% per year while VYM charges 0.04%. On a $10,000 position that is $517 vs $4 annually, a gap of $513 per year that compounds over a long holding period. On income, EFR currently yields 7.72% against 2.24% for VYM.
Holdings Overlap
EFR and VYM share 0 holdings out of 783 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, EFR or VYM?
EFR has an expense ratio of 5.17% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $513 per year of difference.
Which performed better, EFR or VYM?
Over the past year EFR returned -0.95% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (20 years), EFR annualized -0.60% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, EFR or VYM?
EFR has been the more volatile fund at 15.0% annualized versus 14.6% for VYM. Worst drawdown: EFR -66.8% vs VYM -58.8%.
Should I hold both EFR and VYM?
EFR and VYM have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between EFR and VYM?
EFR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 783 unique securities.
Which pays a higher dividend, EFR or VYM?
EFR yields 7.72% while VYM yields 2.24%, so EFR currently pays the higher dividend yield.
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