BUFG vs SPY
FT Vest Buffered Allocation Growth 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 | BUFG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.13% | 0.09% | |
| AUM | $324M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 8 | 505 | |
| YTD Return | +8.45% | +13.79% | |
| 1Y Return | +14.99% | +23.66% | |
| 3Y Return (annualized) | +13.59% | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 10.6% | 15.3% | |
| Max Drawdown | -17.6% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Oct 26, 2021 | Jan 22, 1993 |
BUFG vs SPY Performance
FT Vest Buffered Allocation Growth ETF (BUFG) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BUFG returned +14.99% while SPY returned +23.66%. Year to date, BUFG is up 8.45% versus a gain of 13.79% for SPY.
Over three years, BUFG compounded at +13.59% per year against +21.40% for SPY. Across the full 5-year window we track, SPY has the edge at +8.85% annualized vs +8.84%. 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 10.6% for BUFG. 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 -17.6% for BUFG 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 0.99. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BUFG charges 1.13% per year while SPY charges 0.09%. On a $10,000 position that is $113 vs $9 annually, a gap of $104 per year that compounds over a long holding period. On income, BUFG currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
BUFG and SPY share 0 holdings out of 510 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, BUFG or SPY?
BUFG has an expense ratio of 1.13% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $104 per year of difference.
Which performed better, BUFG or SPY?
Over the past year BUFG returned +14.99% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (5 years), BUFG annualized +8.84% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BUFG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.6% for BUFG. Worst drawdown: BUFG -17.6% vs SPY -56.5%.
Should I hold both BUFG and SPY?
BUFG and SPY have a monthly-return correlation of 0.99, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between BUFG and SPY?
BUFG and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 510 unique securities.
Which pays a higher dividend, BUFG or SPY?
BUFG yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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