BUFI vs VOO

Quick Verdict

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

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricBUFIVOOWinner
Expense Ratio0.69%0.03%
AUM$139M$979.0B
Dividend Yield0.00%1.09%
Holdings8509
YTD Return+7.33%+13.80%
1Y Return+14.33%+23.71%
3Y Return (annualized)-+21.50%
5Y Return (annualized)-+13.44%
Volatility (annualized)5.1%14.1%
Max Drawdown-7.4%-34.3%
Fund FamilyAllianceBernstein L.P.Vanguard (US)
CategoryAlternativeEquity
InceptionDec 9, 2024Sep 7, 2010

BUFI vs VOO Performance

AB International Buffer ETF (BUFI) is a ETF from AllianceBernstein L.P. and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BUFI returned +14.33% while VOO returned +23.71%. Year to date, BUFI is up 7.33% versus a gain of 13.80% for VOO.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BUFI charges 0.69% per year while VOO 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 VOO.

Frequently Asked Questions

Which is cheaper, BUFI or VOO?

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

Which performed better, BUFI or VOO?

Over the past year BUFI returned +14.33% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (2 years), BUFI annualized +14.00% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, BUFI or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 5.1% for BUFI. Worst drawdown: BUFI -7.4% vs VOO -34.3%.

Should I hold both BUFI and VOO?

BUFI and VOO have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BUFI or VOO?

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

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