BUFB vs SCHD

Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricBUFBSCHDWinner
Expense Ratio0.89%0.06%
AUM$320M$103.7B
Dividend Yield0.00%3.31%
Holdings14104
YTD Return+9.90%+24.26%
1Y Return+16.89%+31.38%
3Y Return (annualized)+15.09%+15.08%
5Y Return (annualized)-+9.72%
Volatility (annualized)10.8%13.6%
Max Drawdown-14.9%-33.4%
Fund FamilyInnovator ETFs TrustCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionFeb 8, 2022Oct 20, 2011

BUFB vs SCHD Performance

Innovator Laddered Allocation Buffer ETF (BUFB) is a ETF from Innovator ETFs Trust and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year BUFB returned +16.89% while SCHD returned +31.38%. Year to date, BUFB is up 9.90% versus a gain of 24.26% for SCHD.

Over three years, BUFB compounded at +15.09% per year against +15.08% for SCHD. Across the full 5-year window we track, SCHD has the edge at +11.39% annualized vs +11.02%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 10.8% for BUFB. 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 -14.9% for BUFB and -33.4% for SCHD. 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BUFB charges 0.89% per year while SCHD charges 0.06%. On a $10,000 position that is $89 vs $6 annually, a gap of $83 per year that compounds over a long holding period. On income, BUFB currently yields 0.00% against 3.31% for SCHD.

Holdings Overlap

0.0%overlap

BUFB and SCHD share 0 holdings out of 112 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, BUFB or SCHD?

BUFB has an expense ratio of 0.89% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $83 per year of difference.

Which performed better, BUFB or SCHD?

Over the past year BUFB returned +16.89% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (5 years), BUFB annualized +11.02% vs +11.39% for SCHD. Past performance does not guarantee future results.

Which is riskier, BUFB or SCHD?

SCHD has been the more volatile fund at 13.6% annualized versus 10.8% for BUFB. Worst drawdown: BUFB -14.9% vs SCHD -33.4%.

Should I hold both BUFB and SCHD?

BUFB and SCHD have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFB and SCHD?

BUFB and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 112 unique securities.

Which pays a higher dividend, BUFB or SCHD?

BUFB yields 0.00% while SCHD yields 3.31%, so SCHD currently pays the higher dividend yield.

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