BUFD vs VYM
BUFD vs VYM
FT Vest Laddered Deep Buffer 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 | BUFD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $2.0B | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 13 | 568 | |
| YTD Return | +6.91% | +15.80% | |
| 1Y Return | +12.25% | +26.12% | |
| 3Y Return (annualized) | +11.71% | +18.25% | |
| 5Y Return (annualized) | +7.78% | +12.51% | |
| Volatility (annualized) | 6.5% | 14.6% | |
| Max Drawdown | -10.8% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 20, 2021 | Nov 10, 2006 |
BUFD vs VYM Performance
FT Vest Laddered Deep Buffer ETF (BUFD) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BUFD returned +12.25% while VYM returned +26.12%. Year to date, BUFD is up 6.91% versus a gain of 15.80% for VYM.
Over three years, BUFD compounded at +11.71% per year against +18.25% for VYM; over five years the annualized figures are +7.78% and +12.51% respectively. Across the full 6-year window we track, BUFD has the edge at +7.64% annualized vs +7.07%. 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 6.5% for BUFD. 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 -10.8% for BUFD 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFD charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, BUFD currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
BUFD and VYM share 0 holdings out of 570 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, BUFD or VYM?
BUFD has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, BUFD or VYM?
Over the past year BUFD returned +12.25% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), BUFD annualized +7.64% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BUFD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.5% for BUFD. Worst drawdown: BUFD -10.8% vs VYM -58.8%.
Should I hold both BUFD and VYM?
BUFD and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFD and VYM?
BUFD and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 570 unique securities.
Which pays a higher dividend, BUFD or VYM?
BUFD yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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