BUFF vs VYM
BUFF vs VYM
Innovator Laddered Allocation Power 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 | BUFF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.04% | |
| AUM | $924M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 14 | 568 | |
| YTD Return | +7.16% | +15.80% | |
| 1Y Return | +12.59% | +26.12% | |
| 3Y Return (annualized) | +11.87% | +18.25% | |
| 5Y Return (annualized) | +8.86% | +12.51% | |
| Volatility (annualized) | 13.4% | 14.6% | |
| Max Drawdown | -46.2% | -58.8% | |
| Fund Family | Innovator ETFs Trust | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 20, 2016 | Nov 10, 2006 |
BUFF vs VYM Performance
Innovator Laddered Allocation Power Buffer ETF (BUFF) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BUFF returned +12.59% while VYM returned +26.12%. Year to date, BUFF is up 7.16% versus a gain of 15.80% for VYM.
Over three years, BUFF compounded at +11.87% per year against +18.25% for VYM; over five years the annualized figures are +8.86% and +12.51% respectively. Across the full 10-year window we track, BUFF has the edge at +7.96% 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 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 -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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFF 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, BUFF currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
BUFF 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, BUFF or VYM?
BUFF has an expense ratio of 0.89% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $85 per year of difference.
Which performed better, BUFF or VYM?
Over the past year BUFF returned +12.59% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), BUFF annualized +7.96% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BUFF or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.4% for BUFF. Worst drawdown: BUFF -46.2% vs VYM -58.8%.
Should I hold both BUFF and VYM?
BUFF and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFF and VYM?
BUFF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 570 unique securities.
Which pays a higher dividend, BUFF or VYM?
BUFF yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.