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EFAA vs VRP

Invesco MSCI EAFE Income Advantage ETF vs Invesco Variable Rate Preferred ETF

EFAA

Invesco MSCI EAFE Income Advantage ETF

Annual cost

0.39%

Fund size

$505M

VRP

Invesco Variable Rate Preferred ETF

Annual cost

0.50%

Fund size

$2.9B

Key differences

EFAA is an alternative ETF, while VRP is a fixed income ETF. EFAA charges 0.39% a year and VRP 0.50%.

  • EFAA is an alternative fund, while VRP is a fixed income fund. They carry different risk/return profiles.
  • EFAA follows a option income strategy; VRP uses index tracking.
  • EFAA costs 0.11% less per year.
  • VRP is much larger than EFAA. Larger funds are usually more liquid and less likely to close.
  • VRP has a longer track record, which may reduce uncertainty around long-term behavior.

Side-by-side comparison

EFAAVRP
Annual cost (TER)0.39%0.50%
Fund size (AUM)$505M$2.9B
Since20242014
Dividend yield8.11%6.31%
Asset classalternativefixed income
Regionnorth america
Strategyoption incomeindex tracking
CAGR 1Y+16.3%+6.8%
CAGR 3YN/A+9.9%
CAGR 5YN/A+4.4%
Sharpe 3YN/A1.35
Volatility 1Y12.12%2.89%
Max drawdown-11.97%-46.04%

Similar to EFAA and VRP