Quick Verdict

IVV has a lower expense ratio. IVV delivered stronger 1-year returns. IVV offers more diversification with 505 holdings.

Lower Fees: IVVHigher Returns: IVVMore Diversified: IVV

Side-by-Side Comparison

MetricBUFIIVVWinner
Expense Ratio0.69%0.03%
AUM$139M$865.2B
Dividend Yield0.00%1.09%
Holdings8508
YTD Return+7.33%+13.80%
1Y Return+14.33%+23.70%
3Y Return (annualized)-+21.49%
5Y Return (annualized)-+13.43%
Volatility (annualized)5.1%15.1%
Max Drawdown-7.4%-56.5%
Fund FamilyAllianceBernstein L.P.iShares by BlackRock (US)
CategoryAlternativeEquity
InceptionDec 9, 2024May 15, 2000

BUFI vs IVV Performance

AB International Buffer ETF (BUFI) is a ETF from AllianceBernstein L.P. and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year BUFI returned +14.33% while IVV returned +23.70%. Year to date, BUFI is up 7.33% versus a gain of 13.80% for IVV.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 5.1% for BUFI. 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 -7.4% for BUFI and -56.5% for IVV. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BUFI charges 0.69% per year while IVV charges 0.03%. On a $10,000 position that is $69 vs $3 annually, a gap of $66 per year that compounds over a long holding period. On income, BUFI currently yields 0.00% against 1.09% for IVV.

Frequently Asked Questions

Which is cheaper, BUFI or IVV?

BUFI has an expense ratio of 0.69% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $66 per year of difference.

Which performed better, BUFI or IVV?

Over the past year BUFI returned +14.33% vs +23.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (2 years), BUFI annualized +14.00% vs +7.05% for IVV. Past performance does not guarantee future results.

Which is riskier, BUFI or IVV?

IVV has been the more volatile fund at 15.1% annualized versus 5.1% for BUFI. Worst drawdown: BUFI -7.4% vs IVV -56.5%.

Should I hold both BUFI and IVV?

BUFI and IVV have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BUFI or IVV?

BUFI yields 0.00% while IVV yields 1.09%, so IVV currently pays the higher dividend yield.

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