BUFB vs SPY
BUFB vs SPY
Innovator Laddered Allocation Buffer ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | BUFB | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.09% | |
| AUM | $320M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 14 | 505 | |
| YTD Return | +9.90% | +13.79% | |
| 1Y Return | +16.89% | +23.66% | |
| 3Y Return (annualized) | +15.09% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 10.8% | 15.3% | |
| Max Drawdown | -14.9% | -56.5% | |
| Fund Family | Innovator ETFs Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Feb 8, 2022 | Jan 22, 1993 |
BUFB vs SPY Performance
Innovator Laddered Allocation Buffer ETF (BUFB) 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 BUFB returned +16.89% while SPY returned +23.66%. Year to date, BUFB is up 9.90% versus a gain of 13.79% for SPY.
Over three years, BUFB compounded at +15.09% per year against +21.40% for SPY. Across the full 5-year window we track, BUFB has the edge at +11.02% 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 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 -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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BUFB charges 0.89% per year while SPY charges 0.09%. On a $10,000 position that is $89 vs $9 annually, a gap of $80 per year that compounds over a long holding period. On income, BUFB currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
BUFB and SPY share 0 holdings out of 515 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 SPY?
BUFB has an expense ratio of 0.89% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $80 per year of difference.
Which performed better, BUFB or SPY?
Over the past year BUFB returned +16.89% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), BUFB annualized +11.02% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BUFB or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.8% for BUFB. Worst drawdown: BUFB -14.9% vs SPY -56.5%.
Should I hold both BUFB and SPY?
BUFB and SPY have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BUFB and SPY?
BUFB and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 515 unique securities.
Which pays a higher dividend, BUFB or SPY?
BUFB yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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