BUFI vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricBUFIVYMWinner
Expense Ratio0.69%0.04%
AUM$139M$79.0B
Dividend Yield0.00%2.86%
Holdings8568
YTD Return+7.33%+15.80%
1Y Return+14.33%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)5.1%14.6%
Max Drawdown-7.4%-58.8%
Fund FamilyAllianceBernstein L.P.Vanguard (US)
CategoryAlternativeEquity
InceptionDec 9, 2024Nov 10, 2006

BUFI vs VYM Performance

AB International Buffer ETF (BUFI) is a ETF from AllianceBernstein L.P. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BUFI returned +14.33% while VYM returned +26.12%. Year to date, BUFI is up 7.33% versus a gain of 15.80% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BUFI charges 0.69% per year while VYM charges 0.04%. On a $10,000 position that is $69 vs $4 annually, a gap of $65 per year that compounds over a long holding period. On income, BUFI currently yields 0.00% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, BUFI or VYM?

BUFI has an expense ratio of 0.69% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $65 per year of difference.

Which performed better, BUFI or VYM?

Over the past year BUFI returned +14.33% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), BUFI annualized +14.00% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BUFI or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.1% for BUFI. Worst drawdown: BUFI -7.4% vs VYM -58.8%.

Should I hold both BUFI and VYM?

BUFI and VYM have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BUFI or VYM?

BUFI yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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