Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: AMEFX is ratedTier 1 (Cornerstone)while ESS is ratedTier 3 (Specialty).AMEFX is structurally lower risk than ESS.
| Metric | AMEFX | ESS |
|---|---|---|
| Total Return (1Y) | 34.73% | -13.36% |
| NAV Change (1Y) | 3.62% | -17.44% |
| Max Drawdown | -16.91% | -21.78% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
AMEFX (American Funds Income Fund of Amer F2) is a conservative dividend growth fund managed by American Funds. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
ESS (Essex Property Trust Inc.) is a sector-specific income fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of AMEFX vs ESS, the choice depends on your specific goal. AMEFX wins for Immediate Income with a 31.11% yield. However, AMEFX is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
AMEFX
Annual Yield: 31.11%
$2,592/mo
($31,106/year)
Frequency: quarterly
ESS
Annual Yield: 4.08%
$340/mo
($4,081/year)
Frequency: quarterly
Income Gap: AMEFX generates $27,025/year more than ESS on the same $100k investment.
Over 20 years, that's $540,494 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. AMEFX has delivered a superior Total Return of 34.73% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
AMEFX (More Resilient)
Max Drawdown: -16.91%
-$16,910
Worst unrealized loss
ESS (More Volatile)
Max Drawdown: -21.78%
-$21,780
Worst unrealized loss
Protection Value: AMEFX saved investors $4,870 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: AMEFX demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.