BUFB vs VYM
Innovator Laddered Allocation Buffer ETF vs Vanguard High Dividend Yield ETF
Which is better, BUFB or VYM?
Option Writing against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 83.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | BUFB | VYM |
|---|---|---|
| Expense Ratio | 0.89% | 0.04%Best |
| AUM | $334M | $81.6B |
| Dividend Yield | 0.00% | 2.22% |
| Holdings | 28 | 613 |
| YTD Return | +9.87% | +12.29%Best |
| 1Y Return | +13.46% | +16.61%Best |
| 3Y Return (annualized) | +15.22% | +17.42%Best |
| 5Y Return (annualized) | - | +12.12% |
| Volatility (annualized) | 10.7%Best | 13.8% |
| Max Drawdown | -14.9%Best | -15.8% |
| $10,000 over 4.6 years | $15,982 | $16,088Best |
| Top 10 Weight | 83.8% | 26.1%Best |
| Fund Family | Innovator ETFs Trust | Vanguard (US) |
| Category | Alternative | Equity |
| Style | Option Writing | Large Cap Value |
| Inception | Feb 8, 2022 | Nov 10, 2006 |
Volatility and max drawdown, and the $10,000 over 4.6 years row, are measured over the window both funds cover: Feb 9, 2022 to Sep 17, 2026 (4.6 years).
BUFB vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 4.6 years both funds cover.
BUFB vs VYM Performance
Innovator Laddered Allocation Buffer ETF (BUFB) is an ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year BUFB returned +13.46% while VYM returned +16.61%. Year to date, BUFB is up 9.87% versus a gain of 12.29% for VYM.
Over three years, BUFB compounded at +15.22% per year against +17.42% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 13.8% compared with 10.7% 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 -15.8% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFB 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, BUFB currently yields 0.00% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 12 holdings in BUFB and 557 in VYM, totalling 99.9% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 12 positions we hold weights for in BUFB and 557 in VYM, against full books of 28 and 613.
What only one of them owns
Our book lists 528 positions for VYM that do not appear in our book for BUFB (97.1% of the fund), and 12 for BUFB that do not appear in VYM (99.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of BUFB and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, BUFB or VYM?
BUFB has an expense ratio of 0.89% while VYM charges 0.04%. VYM is the cheaper option, by $85 a year on a $10,000 investment.
Which performed better, BUFB or VYM?
Over the past year BUFB returned +13.46% vs +16.61% for VYM, so VYM leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, BUFB or VYM?
VYM has been the more volatile fund at 13.8% annualized versus 10.7% for BUFB. Worst drawdown: BUFB -14.9% vs VYM -15.8%.
Should I hold both BUFB and VYM?
BUFB and VYM have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, BUFB or VYM?
BUFB yields 0.00% while VYM yields 2.22%, so VYM currently pays the higher dividend yield.
Is VYM better than BUFB?
VYM has a lower expense ratio. VYM led over 1Y, 3Y and the full window. VYM is less concentrated, with 26.1% of the fund in its ten largest positions against 83.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.