BUFP vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricBUFPSPYWinner
Expense Ratio0.50%0.09%
AUM$223M$789.1B
Dividend Yield0.01%1.01%
Holdings15505
YTD Return+8.63%+13.79%
1Y Return+14.52%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)6.2%15.3%
Max Drawdown-12.0%-56.5%
Fund FamilyPGIM InvestmentsState Street Investment Management
CategoryAlternativeEquity
InceptionJun 11, 2024Jan 22, 1993

BUFP vs SPY Performance

PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) is a ETF from PGIM Investments and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BUFP returned +14.52% while SPY returned +23.66%. Year to date, BUFP is up 8.63% 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 6.2% for BUFP. 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 -12.0% for BUFP 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 0.98. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BUFP charges 0.50% per year while SPY charges 0.09%. On a $10,000 position that is $50 vs $9 annually, a gap of $41 per year that compounds over a long holding period. On income, BUFP currently yields 0.01% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

BUFP and SPY share 0 holdings out of 515 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, BUFP or SPY?

BUFP has an expense ratio of 0.50% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $41 per year of difference.

Which performed better, BUFP or SPY?

Over the past year BUFP returned +14.52% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BUFP annualized +13.14% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BUFP or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 6.2% for BUFP. Worst drawdown: BUFP -12.0% vs SPY -56.5%.

Should I hold both BUFP and SPY?

BUFP and SPY have a monthly-return correlation of 0.98, 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 BUFP and SPY?

BUFP and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 515 unique securities.

Which pays a higher dividend, BUFP or SPY?

BUFP yields 0.01% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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