BUFF vs SPY
BUFF vs SPY
Innovator Laddered Allocation Power 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 | BUFF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.09% | |
| AUM | $924M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 14 | 505 | |
| YTD Return | +7.16% | +13.79% | |
| 1Y Return | +12.59% | +23.66% | |
| 3Y Return (annualized) | +11.87% | +21.40% | |
| 5Y Return (annualized) | +8.86% | +13.37% | |
| Volatility (annualized) | 13.4% | 15.3% | |
| Max Drawdown | -46.2% | -56.5% | |
| Fund Family | Innovator ETFs Trust | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Oct 20, 2016 | Jan 22, 1993 |
BUFF vs SPY Performance
Innovator Laddered Allocation Power Buffer ETF (BUFF) 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 BUFF returned +12.59% while SPY returned +23.66%. Year to date, BUFF is up 7.16% versus a gain of 13.79% for SPY.
Over three years, BUFF compounded at +11.87% per year against +21.40% for SPY; over five years the annualized figures are +8.86% and +13.37% respectively. Across the full 10-year window we track, SPY has the edge at +8.85% annualized vs +7.96%. 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 13.4% for BUFF. 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 -46.2% for BUFF 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFF 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, BUFF currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
BUFF 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, BUFF or SPY?
BUFF 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, BUFF or SPY?
Over the past year BUFF returned +12.59% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), BUFF annualized +7.96% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BUFF or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 13.4% for BUFF. Worst drawdown: BUFF -46.2% vs SPY -56.5%.
Should I hold both BUFF and SPY?
BUFF and SPY have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFF and SPY?
BUFF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 515 unique securities.
Which pays a higher dividend, BUFF or SPY?
BUFF yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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