EFRA vs VYM

EFRA vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricEFRAVYMWinner
Expense Ratio0.47%0.04%
AUM$6M$81.6B
Dividend Yield4.07%2.24%
Holdings101616
YTD Return+9.77%+16.42%
1Y Return+11.29%+24.22%
3Y Return (annualized)+12.26%+19.03%
5Y Return (annualized)-+12.21%
Volatility (annualized)15.3%14.6%
Max Drawdown-17.9%-58.8%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 1, 2022Nov 10, 2006

EFRA vs VYM Performance

iShares Environmental Infrastructure and Industrials ETF (EFRA) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year EFRA returned +11.29% while VYM returned +24.22%. Year to date, EFRA is up 9.77% versus a gain of 16.42% for VYM.

Over three years, EFRA compounded at +12.26% per year against +19.03% for VYM. Across the full 4-year window we track, EFRA has the edge at +14.14% annualized vs +7.10%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EFRA has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -17.9% for EFRA 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 0.78. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

EFRA charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, EFRA currently yields 4.07% against 2.24% for VYM.

Holdings Overlap

0.3%overlap

EFRA and VYM share 6 holdings out of 677 unique holdings combined, representing a 0.3% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in EFRAWeight in VYMDifference
XYL6.29%0.12%6.17%
AWK6.02%0.11%5.91%
WTRG2.93%0.05%2.88%
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Frequently Asked Questions

Which is cheaper, EFRA or VYM?

EFRA has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $43 per year of difference.

Which performed better, EFRA or VYM?

Over the past year EFRA returned +11.29% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), EFRA annualized +14.14% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, EFRA or VYM?

EFRA has been the more volatile fund at 15.3% annualized versus 14.6% for VYM. Worst drawdown: EFRA -17.9% vs VYM -58.8%.

Should I hold both EFRA and VYM?

EFRA and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EFRA and VYM?

EFRA and VYM share 6 common holdings with a 0.3% weight overlap. Combined, they hold 677 unique securities.

Which pays a higher dividend, EFRA or VYM?

EFRA yields 4.07% while VYM yields 2.24%, so EFRA currently pays the higher dividend yield.

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