BAUG vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricBAUGVYMWinner
Expense Ratio0.79%0.04%
AUM$195M$79.0B
Dividend Yield0.00%2.86%
Holdings6568
YTD Return+10.47%+16.16%
1Y Return+16.69%+26.05%
3Y Return (annualized)+17.57%+18.43%
5Y Return (annualized)+11.63%+12.21%
Volatility (annualized)11.6%14.6%
Max Drawdown-24.2%-58.8%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionJul 31, 2019Nov 10, 2006

BAUG vs VYM Performance

Innovator U.S. Equity Buffer ETF - August (BAUG) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BAUG returned +16.69% while VYM returned +26.05%. Year to date, BAUG is up 10.47% versus a gain of 16.16% for VYM.

Over three years, BAUG compounded at +17.57% per year against +18.43% for VYM; over five years the annualized figures are +11.63% and +12.21% respectively. Across the full 7-year window we track, BAUG has the edge at +11.97% annualized vs +7.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 11.6% for BAUG. 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 -24.2% for BAUG and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BAUG charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, BAUG currently yields 0.00% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, BAUG or VYM?

BAUG has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.

Which performed better, BAUG or VYM?

Over the past year BAUG returned +16.69% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (7 years), BAUG annualized +11.97% vs +7.09% for VYM. Past performance does not guarantee future results.

Which is riskier, BAUG or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 11.6% for BAUG. Worst drawdown: BAUG -24.2% vs VYM -58.8%.

Should I hold both BAUG and VYM?

BAUG and VYM have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BAUG or VYM?

BAUG yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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