BUFQ vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: VOO

Side-by-Side Comparison

MetricBUFQVOOWinner
Expense Ratio1.00%0.03%
AUM$1.5B$979.0B
Dividend Yield0.00%1.09%
Holdings5509
YTD Return+10.39%+13.80%
1Y Return+16.57%+23.71%
3Y Return (annualized)+16.16%+21.50%
5Y Return (annualized)-+13.44%
Volatility (annualized)11.6%14.1%
Max Drawdown-15.7%-34.3%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionJun 15, 2022Sep 7, 2010

BUFQ vs VOO Performance

FT Vest Laddered Nasdaq Buffer ETF (BUFQ) is a ETF from First Trust Portfolios (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year BUFQ returned +16.57% while VOO returned +23.71%. Year to date, BUFQ is up 10.39% versus a gain of 13.80% for VOO.

Over three years, BUFQ compounded at +16.16% per year against +21.50% for VOO. Across the full 4-year window we track, BUFQ has the edge at +18.20% annualized vs +13.58%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 11.6% for BUFQ. 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 -15.7% for BUFQ and -34.3% for VOO. 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 0.89. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BUFQ charges 1.00% per year while VOO charges 0.03%. On a $10,000 position that is $100 vs $3 annually, a gap of $97 per year that compounds over a long holding period. On income, BUFQ currently yields 0.00% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

BUFQ and VOO share 0 holdings out of 509 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, BUFQ or VOO?

BUFQ has an expense ratio of 1.00% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $97 per year of difference.

Which performed better, BUFQ or VOO?

Over the past year BUFQ returned +16.57% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (4 years), BUFQ annualized +18.20% vs +13.58% for VOO. Past performance does not guarantee future results.

Which is riskier, BUFQ or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 11.6% for BUFQ. Worst drawdown: BUFQ -15.7% vs VOO -34.3%.

Should I hold both BUFQ and VOO?

BUFQ and VOO have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFQ and VOO?

BUFQ and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 509 unique securities.

Which pays a higher dividend, BUFQ or VOO?

BUFQ yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.

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