BUFM vs VYM
BUFM vs VYM
AB Moderate Buffer 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 | BUFM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.04% | |
| AUM | $450M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 7 | 568 | |
| YTD Return | +5.34% | +15.80% | |
| 1Y Return | +11.13% | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 5.4% | 14.6% | |
| Max Drawdown | -9.4% | -58.8% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Dec 9, 2024 | Nov 10, 2006 |
BUFM vs VYM Performance
AB Moderate Buffer ETF (BUFM) is a ETF from AllianceBernstein L.P. and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BUFM returned +11.13% while VYM returned +26.12%. Year to date, BUFM is up 5.34% 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 5.4% 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 -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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFM 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, BUFM currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
BUFM and VYM share 0 holdings out of 559 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 VYM?
BUFM 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, BUFM or VYM?
Over the past year BUFM returned +11.13% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), BUFM annualized +10.46% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BUFM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.4% for BUFM. Worst drawdown: BUFM -9.4% vs VYM -58.8%.
Should I hold both BUFM and VYM?
BUFM and VYM have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFM and VYM?
BUFM and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 559 unique securities.
Which pays a higher dividend, BUFM or VYM?
BUFM yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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