BUFC 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

MetricBUFCSPYWinner
Expense Ratio0.69%0.09%
AUM$1.0B$789.1B
Dividend Yield0.00%1.01%
Holdings4505
YTD Return+4.37%+13.79%
1Y Return+8.27%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)3.5%15.3%
Max Drawdown-8.3%-56.5%
Fund FamilyAllianceBernstein L.P.State Street Investment Management
CategoryAlternativeEquity
InceptionDec 13, 2023Jan 22, 1993

BUFC vs SPY Performance

AB Conservative Buffer ETF (BUFC) is a ETF from AllianceBernstein L.P. and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BUFC returned +8.27% while SPY returned +23.66%. Year to date, BUFC is up 4.37% versus a gain of 13.79% for SPY.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 3.5% for BUFC. 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 -8.3% for BUFC 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BUFC charges 0.69% per year while SPY charges 0.09%. On a $10,000 position that is $69 vs $9 annually, a gap of $60 per year that compounds over a long holding period. On income, BUFC currently yields 0.00% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

BUFC and SPY share 0 holdings out of 504 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, BUFC or SPY?

BUFC has an expense ratio of 0.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $60 per year of difference.

Which performed better, BUFC or SPY?

Over the past year BUFC returned +8.27% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), BUFC annualized +8.04% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BUFC or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 3.5% for BUFC. Worst drawdown: BUFC -8.3% vs SPY -56.5%.

Should I hold both BUFC and SPY?

BUFC and SPY have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFC and SPY?

BUFC and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.

Which pays a higher dividend, BUFC or SPY?

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

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