AFDM vs EFA
First Trust Active Factor International ETF vs iShares MSCI EAFE ETF
Which is better, AFDM or EFA?
Nearly the same fund. EFA costs less.
EFA has a lower expense ratio. AFDM led over 1Y, 3Y and 5Y, EFA over the full window. The two have moved almost in lockstep, correlation 0.96. EFA is less concentrated, with 14.1% of the fund in its ten largest positions against 15.1%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | AFDM | EFA |
|---|---|---|
| Expense Ratio | 0.83% | 0.32%Best |
| AUM | $149M | $76.7B |
| Dividend Yield | 3.47% | 3.24% |
| Holdings | 178 | 682 |
| YTD Return | +11.55%Best | +7.56% |
| 1Y Return | +20.58%Best | +13.78% |
| 3Y Return (annualized) | +21.39%Best | +17.91% |
| 5Y Return (annualized) | +8.90%Best | +8.68% |
| Volatility (annualized) | 15.3% | 14.7%Best |
| Max Drawdown | -42.4% | -34.2%Best |
| $10,000 over 5 years | $15,316Best | $15,162 |
| Top 10 Weight | 15.1% | 14.1%Best |
| Fund Family | First Trust Portfolios (US) | iShares by BlackRock (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 14, 2016 | Aug 14, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Apr 14, 2016 to Oct 14, 2026 (10.5 years).
AFDM vs EFA growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10.5 years both funds cover.
AFDM vs EFA Performance
First Trust Active Factor International ETF (AFDM) is an ETF from First Trust Portfolios (US) and iShares MSCI EAFE ETF (EFA) is an ETF from iShares by BlackRock (US). Over the past year AFDM returned +20.58% while EFA returned +13.78%. Year to date, AFDM is up 11.55% versus a gain of 7.56% for EFA.
Over three years, AFDM compounded at +21.39% per year against +17.91% for EFA; over five years the annualized figures are +8.90% and +8.68% respectively. Across the full 11-year window we track, EFA has the edge at +8.85% annualized vs +7.61%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFDM has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.7% for EFA. 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 -42.4% for AFDM and -34.2% for EFA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AFDM charges 0.83% per year while EFA charges 0.32%. On a $10,000 position that is $83 vs $32 annually, a gap of $51 per year that compounds over a long holding period. On income, AFDM currently yields 3.47% against 3.24% for EFA.
Holdings Overlap
51.5% of AFDM's money is in holdings EFA also owns. 20.2% of EFA's money is in holdings AFDM also owns.
The two portfolios partly overlap.
83 positions in common, counted across the 178 positions we hold weights for in AFDM and 655 in EFA, against full books of 178 and 682.
What only one of them owns
Our book lists 9 positions for EFA that do not appear in our book for AFDM (3.9% of the fund), and 2 for AFDM that do not appear in EFA (4.1%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in AFDM | Weight in EFA | Difference |
|---|---|---|---|
| ASML:ASASML Holding NV - Ordinary Shares | 2.20% | 3.27% | 1.07% |
| NOVN:SMNovartis Ag Ordinary Shares | 1.13% | 1.22% | 0.09% |
| HSBA:LNHsbc Holdings Plc | 0.75% | 1.53% | 0.78% |
| BARC:LNBarclays Plc | 1.69% | 0.37% | 1.32% |
| BNP:PABnp Paribas Sa | 1.58% | 0.48% | 1.10% |
| RR:LNRolls-Royce Holdings PLC Ord Gbp0.20 | 1.13% | 0.76% | 0.37% |
| BHP:AUBHP Group Limited Ordinary Shares | 0.87% | 0.99% | 0.12% |
| TTE:PATotalenergies Se Ordinary Shares | 0.88% | 0.76% | 0.12% |
| CFR:SMCie Financiere Richemo-A Reg | 1.05% | 0.52% | 0.53% |
| UBSG:SMUbs Group Ag Ordinary Shares | 0.87% | 0.69% | 0.18% |
51.5% of AFDM is already inside EFA.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, AFDM or EFA?
AFDM has an expense ratio of 0.83% while EFA charges 0.32%. EFA is the cheaper option, by $51 a year on a $10,000 investment.
Which performed better, AFDM or EFA?
Over the past year AFDM returned +20.58% vs +13.78% for EFA, so AFDM leads on 1-year performance. Over the longest common window we track (11 years), AFDM annualized +7.61% vs +8.85% for EFA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFDM or EFA?
AFDM has been the more volatile fund at 15.3% annualized versus 14.7% for EFA. Worst drawdown: AFDM -42.4% vs EFA -34.2%.
Should I hold both AFDM and EFA?
AFDM and EFA have a monthly-return correlation of 0.96, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
What is the holdings overlap between AFDM and EFA?
51.5% of AFDM's money is in holdings EFA also owns. 20.2% of EFA's is in holdings AFDM also owns. They hold 83 positions in common, counted across the 178 positions we hold weights for in AFDM and 655 in EFA.
Which pays a higher dividend, AFDM or EFA?
AFDM yields 3.47% while EFA yields 3.24%, so AFDM currently pays the higher dividend yield.
Is EFA better than AFDM?
EFA has a lower expense ratio. AFDM led over 1Y, 3Y and 5Y, EFA over the full window. The two have moved almost in lockstep, correlation 0.96. EFA is less concentrated, with 14.1% of the fund in its ten largest positions against 15.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.