BSTP vs VYM
Innovator Buffer Step Up Strategy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | BSTP | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.04% | |
| AUM | $60M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 6 | 568 | |
| YTD Return | +8.25% | +16.53% | |
| 1Y Return | +13.39% | +25.03% | |
| 3Y Return (annualized) | +13.84% | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 11.0% | 14.6% | |
| Max Drawdown | -16.7% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Mar 7, 2022 | Nov 10, 2006 |
BSTP vs VYM Performance
Innovator Buffer Step Up Strategy ETF (BSTP) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BSTP returned +13.39% while VYM returned +25.03%. Year to date, BSTP is up 8.25% versus a gain of 16.53% for VYM.
Over three years, BSTP compounded at +13.84% per year against +18.54% for VYM. Across the full 4-year window we track, BSTP has the edge at +10.99% annualized vs +7.10%. 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 11.0% for BSTP. 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 -16.7% for BSTP 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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BSTP charges 0.89% per year while VYM charges 0.04%. On a $10,000 position that is $89 vs $4 annually, a gap of $85 per year that compounds over a long holding period. On income, BSTP currently yields 0.00% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, BSTP or VYM?
BSTP has an expense ratio of 0.89% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $85 per year of difference.
Which performed better, BSTP or VYM?
Over the past year BSTP returned +13.39% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), BSTP annualized +10.99% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, BSTP or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 11.0% for BSTP. Worst drawdown: BSTP -16.7% vs VYM -58.8%.
Should I hold both BSTP and VYM?
BSTP and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, BSTP or VYM?
BSTP yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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