EFAX vs RZG Fund Comparison

A comparison between EFAX and RZG based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on EFAX vs RZG

Here's an in depth look at the differences between SPDR MSCI EAFE Fossil Fuel Free ETF($EFAX) and Invesco S&P SmallCap 600 Pure Growth ETF($RZG).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

  • efax
  • ETF
  • International Stocks
  • Large Blend

SPDR MSCI EAFE Fossil Fuel Free ETF

Expenses: 0.20% (Better than 1% of similar funds)

This is an OK choice for a Large Blend International Stocks fund. See why »

  • rzg
  • ETF
  • US Stocks
  • Small Growth

Invesco S&P SmallCap 600 Pure Growth ETF

Expenses: 0.35% (Better than 1% of similar funds)

This is a bad choice for a Small Growth US Stocks fund. See why »

Both $EFAX and $RZG are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

EFAXRZG
Market Score 2.6 /10 2.5 /10
Category Score 10.0 /10 5.0 /10
Total12.67.5

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for EFAX is 6.8/10, while RZG has a diversification score of 2.5/10.

In other words, EFAX more closely matches it's benchmark.

Winner: $EFAX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, EFAX has an expense ratio of 0.20% while RZG has an expense ratio of 0.35%. In this case, both of these funds have a similar fee.

Winner: $EFAX (barely)

Fund Size Comparison

Both EFAX and RZG have a similar number of assets under management. EFAX has 107 Million in assets under management, while RZG has 104 Million.

Minafi categorizes both of these funds as small funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? EFAX or RZG?

Comparing these two funds isn't an apples to apples comparison. EFAX is a International StocksLarge Blend fund, while RZG is a US StocksSmall Growth fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives EFAX a score of 65 and RZG a score of 49.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$EFAX

SPDR MSCI EAFE Fossil Fuel Free ETF

65

Read More
Ratings
Rating TypeRating
Diversification Score7/10
Expense Ratio Score9/10
Expense Rating8/10
Market Score3/10
Category Score10/10
Overview
OverviewDetails
Fund TypeETF
Inception DateOct-24-2016
ExchangeNYSE ARCA
Expense Ratio0.200%
Net Assets107 Million
Yield3.12%
Holdings
DescriptionInfo
MarketInternational Stocks
CategoryLarge Blend
Sectors
  • Basic Materials 5.85%
  • Communication Services 6.90%
  • Consumer Cyclicals 10.69%
  • Consumer Defensive 13.01%
  • Energy 0.31%
  • Financial Services 17.79%
  • Healthcare 16.16%
  • Industrials 14.30%
  • Real Estate 3.59%
  • Technology 9.18%
  • Utilities 2.23%
Regions
  • Africa/Middle East 0.63%
  • Asia Developed 4.24%
  • Asia Emerging 0.18%
  • Australasia 6.73%
  • Europe Developed 47.59%
  • Japan 26.72%
  • North America 0.63%
  • United Kingdom 13.29%

$RZG

Invesco S&P SmallCap 600 Pure Growth ETF

49

Read More
Ratings
Rating TypeRating
Diversification Score2/10
Expense Ratio Score10/10
Expense Rating7/10
Market Score3/10
Category Score5/10
Overview
OverviewDetails
Fund TypeETF
Inception DateMar-1-2006
ExchangeNYSE ARCA
Expense Ratio0.350%
Net Assets104 Million
Yield0.93%
Holdings
DescriptionInfo
MarketUS Stocks
CategorySmall Growth
Sectors
  • Basic Materials 2.73%
  • Communication Services 2.89%
  • Consumer Cyclicals 16.50%
  • Consumer Defensive 1.39%
  • Energy 4.92%
  • Financial Services 9.46%
  • Healthcare 12.50%
  • Industrials 17.63%
  • Real Estate 8.38%
  • Technology 23.61%
  • Utilities 0.00%
Regions
  • Latin America 0.39%
  • North America 99.61%

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