BUFP 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

MetricBUFPVYMWinner
Expense Ratio0.50%0.04%
AUM$223M$79.0B
Dividend Yield0.01%2.86%
Holdings15568
YTD Return+8.63%+15.80%
1Y Return+14.52%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)6.2%14.6%
Max Drawdown-12.0%-58.8%
Fund FamilyPGIM InvestmentsVanguard (US)
CategoryAlternativeEquity
InceptionJun 11, 2024Nov 10, 2006

BUFP vs VYM Performance

PGIM Laddered S&P 500 Buffer 12 ETF (BUFP) is a ETF from PGIM Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BUFP returned +14.52% while VYM returned +26.12%. Year to date, BUFP is up 8.63% 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 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 -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

BUFP charges 0.50% per year while VYM charges 0.04%. On a $10,000 position that is $50 vs $4 annually, a gap of $46 per year that compounds over a long holding period. On income, BUFP currently yields 0.01% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BUFP and VYM share 0 holdings out of 570 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 VYM?

BUFP has an expense ratio of 0.50% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $46 per year of difference.

Which performed better, BUFP or VYM?

Over the past year BUFP returned +14.52% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), BUFP annualized +13.14% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BUFP or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.2% for BUFP. Worst drawdown: BUFP -12.0% vs VYM -58.8%.

Should I hold both BUFP and VYM?

BUFP 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 BUFP and VYM?

BUFP and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 570 unique securities.

Which pays a higher dividend, BUFP or VYM?

BUFP yields 0.01% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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