BUFM vs SPY
BUFM vs SPY
AB Moderate Buffer 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 | BUFM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.09% | |
| AUM | $450M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 7 | 505 | |
| YTD Return | +5.34% | +13.79% | |
| 1Y Return | +11.13% | +23.66% | |
| 3Y Return (annualized) | - | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 5.4% | 15.3% | |
| Max Drawdown | -9.4% | -56.5% | |
| Fund Family | AllianceBernstein L.P. | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Dec 9, 2024 | Jan 22, 1993 |
BUFM vs SPY Performance
AB Moderate Buffer ETF (BUFM) is a ETF from AllianceBernstein L.P. and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BUFM returned +11.13% while SPY returned +23.66%. Year to date, BUFM is up 5.34% versus a gain of 13.79% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.4% for BUFM. 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 -9.4% for BUFM 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 0.94. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
BUFM charges 0.69% per year while SPY charges 0.09%. On a $10,000 position that is $69 vs $9 annually, a gap of $60 per year that compounds over a long holding period. On income, BUFM currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
BUFM and SPY share 0 holdings out of 504 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, BUFM or SPY?
BUFM has an expense ratio of 0.69% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, BUFM or SPY?
Over the past year BUFM returned +11.13% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BUFM annualized +10.46% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BUFM or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.4% for BUFM. Worst drawdown: BUFM -9.4% vs SPY -56.5%.
Should I hold both BUFM and SPY?
BUFM and SPY have a monthly-return correlation of 0.94, 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 BUFM and SPY?
BUFM and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 504 unique securities.
Which pays a higher dividend, BUFM or SPY?
BUFM yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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