BUFG vs VYM
BUFG vs VYM
FT Vest Buffered Allocation Growth 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 | BUFG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.13% | 0.04% | |
| AUM | $324M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 8 | 568 | |
| YTD Return | +8.45% | +15.80% | |
| 1Y Return | +14.99% | +26.12% | |
| 3Y Return (annualized) | +13.59% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 10.6% | 14.6% | |
| Max Drawdown | -17.6% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 26, 2021 | Nov 10, 2006 |
BUFG vs VYM Performance
FT Vest Buffered Allocation Growth ETF (BUFG) 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 BUFG returned +14.99% while VYM returned +26.12%. Year to date, BUFG is up 8.45% versus a gain of 15.80% for VYM.
Over three years, BUFG compounded at +13.59% per year against +18.25% for VYM. Across the full 5-year window we track, BUFG has the edge at +8.84% 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 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 -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 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFG charges 1.13% per year while VYM charges 0.04%. On a $10,000 position that is $113 vs $4 annually, a gap of $109 per year that compounds over a long holding period. On income, BUFG currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
BUFG and VYM share 0 holdings out of 565 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 VYM?
BUFG has an expense ratio of 1.13% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $109 per year of difference.
Which performed better, BUFG or VYM?
Over the past year BUFG returned +14.99% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), BUFG annualized +8.84% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BUFG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.6% for BUFG. Worst drawdown: BUFG -17.6% vs VYM -58.8%.
Should I hold both BUFG and VYM?
BUFG and VYM have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFG and VYM?
BUFG and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 565 unique securities.
Which pays a higher dividend, BUFG or VYM?
BUFG yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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