AFDM vs EFAA
First Trust Active Factor International ETF vs Invesco MSCI EAFE Income Advantage ETF
Which is better, AFDM or EFAA?
Nearly the same fund. EFAA costs less.
EFAA has a lower expense ratio. AFDM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. AFDM is less concentrated, with 15.1% of the fund in its ten largest positions against 29.9%.
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 | EFAA |
|---|---|---|
| Expense Ratio | 0.83% | 0.39%Best |
| AUM | $149M | $677M |
| Dividend Yield | 3.47% | 8.42% |
| Holdings | 178 | 708 |
| YTD Return | +11.55%Best | +6.32% |
| 1Y Return | +20.58%Best | +11.72% |
| 3Y Return (annualized) | +21.39% | - |
| 5Y Return (annualized) | +8.90% | - |
| Volatility (annualized) | 10.6% | 8.5%Best |
| Max Drawdown | -13.4% | -12.0%Best |
| $10,000 over 2.2 years | $14,573Best | $12,955 |
| Top 10 Weight | 15.1%Best | 29.9% |
| Fund Family | First Trust Portfolios (US) | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Apr 14, 2016 | Jul 17, 2024 |
Volatility and max drawdown, and the $10,000 over 2.2 years row, are measured over the window both funds cover: Jul 17, 2024 to Oct 14, 2026 (2.2 years).
AFDM vs EFAA 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 2.2 years both funds cover.
AFDM vs EFAA Performance
First Trust Active Factor International ETF (AFDM) is an ETF from First Trust Portfolios (US) and Invesco MSCI EAFE Income Advantage ETF (EFAA) is an ETF from Invesco (US). Over the past year AFDM returned +20.58% while EFAA returned +11.72%. Year to date, AFDM is up 11.55% versus a gain of 6.32% for EFAA.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AFDM has been the more volatile fund, with annualized monthly volatility of 10.6% compared with 8.5% 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 -13.4% for AFDM and -12.0% for EFAA. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.95. 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 EFAA charges 0.39%. On a $10,000 position that is $83 vs $39 annually, a gap of $44 per year that compounds over a long holding period. On income, AFDM currently yields 3.47% against 8.42% for EFAA.
Holdings Overlap
59.5% of AFDM's money is in holdings EFAA also owns. 15.1% of EFAA's money is in holdings AFDM also owns.
The two portfolios partly overlap.
103 positions in common, counted across the 178 positions we hold weights for in AFDM and 657 in EFAA, against full books of 178 and 708.
What only one of them owns
Our book lists 22 positions for EFAA that do not appear in our book for AFDM (25.1% of the fund), and 6 for AFDM that do not appear in EFAA (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 EFAA | Difference |
|---|---|---|---|
| BARC:LNBarclays Plc | 1.69% | 0.31% | 1.38% |
| NOVN:SMNovartis Ag Ordinary Shares | 1.13% | 0.87% | 0.26% |
| HSBA:LNHsbc Holdings Plc | 0.75% | 1.25% | 0.50% |
| BNP:PABnp Paribas Sa | 1.58% | 0.41% | 1.17% |
| BHP:AUBHP Group Limited Ordinary Shares | 0.87% | 0.78% | 0.09% |
| ALV:BEAllianz SE Ordinary Shares | 0.91% | 0.67% | 0.24% |
| UBSG:SMUbs Group Ag Ordinary Shares | 0.87% | 0.59% | 0.28% |
| CFR:SMCie Financiere Richemo-A Reg | 1.05% | 0.40% | 0.65% |
| ABB:MBABB Ltd. - Ordinary Shares | 0.93% | 0.51% | 0.42% |
| BP:LNBp Plc Common Stock Gbp | 0.87% | 0.42% | 0.45% |
59.5% of AFDM is already inside EFAA.
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 EFAA?
AFDM has an expense ratio of 0.83% while EFAA charges 0.39%. EFAA is the cheaper option, by $44 a year on a $10,000 investment.
Which performed better, AFDM or EFAA?
Over the past year AFDM returned +20.58% vs +11.72% for EFAA, so AFDM leads on 1-year performance. Over the longest common window we track (2 years), AFDM annualized +18.67% vs +12.49% for EFAA. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, AFDM or EFAA?
AFDM has been the more volatile fund at 10.6% annualized versus 8.5% for EFAA. Worst drawdown: AFDM -13.4% vs EFAA -12.0%.
Should I hold both AFDM and EFAA?
AFDM and EFAA have a monthly-return correlation of 0.95, 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 EFAA?
59.5% of AFDM's money is in holdings EFAA also owns. 15.1% of EFAA's is in holdings AFDM also owns. They hold 103 positions in common, counted across the 178 positions we hold weights for in AFDM and 657 in EFAA.
Which pays a higher dividend, AFDM or EFAA?
AFDM yields 3.47% while EFAA yields 8.42%, so EFAA currently pays the higher dividend yield.
Is EFAA better than AFDM?
EFAA has a lower expense ratio. AFDM led over 1Y and the full window. The two have moved almost in lockstep, correlation 0.95. AFDM is less concentrated, with 15.1% of the fund in its ten largest positions against 29.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.