BFEB vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricBFEBSPYWinner
Expense Ratio0.79%0.09%
AUM$254M$789.1B
Dividend Yield0.00%1.01%
Holdings6505
YTD Return+10.61%+13.79%
1Y Return+18.61%+23.66%
3Y Return (annualized)+16.08%+21.40%
5Y Return (annualized)+11.74%+13.37%
Volatility (annualized)11.2%15.3%
Max Drawdown-26.4%-56.5%
Fund FamilyInnovator ETFs TrustState Street Investment Management
CategoryAlternativeEquity
InceptionFeb 3, 2020Jan 22, 1993

BFEB vs SPY Performance

Innovator US Equity Buffer ETF - February (BFEB) is a ETF from Innovator ETFs Trust and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BFEB returned +18.61% while SPY returned +23.66%. Year to date, BFEB is up 10.61% versus a gain of 13.79% for SPY.

Over three years, BFEB compounded at +16.08% per year against +21.40% for SPY; over five years the annualized figures are +11.74% and +13.37% respectively. Across the full 7-year window we track, BFEB has the edge at +12.74% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 11.2% for BFEB. 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 -26.4% for BFEB and -56.5% for SPY. 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BFEB charges 0.79% per year while SPY charges 0.09%. On a $10,000 position that is $79 vs $9 annually, a gap of $70 per year that compounds over a long holding period. On income, BFEB currently yields 0.00% against 1.01% for SPY.

Frequently Asked Questions

Which is cheaper, BFEB or SPY?

BFEB has an expense ratio of 0.79% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $70 per year of difference.

Which performed better, BFEB or SPY?

Over the past year BFEB returned +18.61% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (7 years), BFEB annualized +12.74% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BFEB or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 11.2% for BFEB. Worst drawdown: BFEB -26.4% vs SPY -56.5%.

Should I hold both BFEB and SPY?

BFEB and SPY have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

Which pays a higher dividend, BFEB or SPY?

BFEB yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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