BUFQ 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

MetricBUFQVYMWinner
Expense Ratio1.00%0.04%
AUM$1.5B$79.0B
Dividend Yield0.00%2.86%
Holdings5568
YTD Return+10.39%+15.80%
1Y Return+16.57%+26.12%
3Y Return (annualized)+16.16%+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)11.6%14.6%
Max Drawdown-15.7%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionJun 15, 2022Nov 10, 2006

BUFQ vs VYM Performance

FT Vest Laddered Nasdaq Buffer ETF (BUFQ) is a ETF from First Trust Portfolios (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year BUFQ returned +16.57% while VYM returned +26.12%. Year to date, BUFQ is up 10.39% versus a gain of 15.80% for VYM.

Over three years, BUFQ compounded at +16.16% per year against +18.25% for VYM. Across the full 4-year window we track, BUFQ has the edge at +18.20% annualized vs +7.07%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BUFQ charges 1.00% per year while VYM charges 0.04%. On a $10,000 position that is $100 vs $4 annually, a gap of $96 per year that compounds over a long holding period. On income, BUFQ currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BUFQ and VYM share 0 holdings out of 562 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 VYM?

BUFQ has an expense ratio of 1.00% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $96 per year of difference.

Which performed better, BUFQ or VYM?

Over the past year BUFQ returned +16.57% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), BUFQ annualized +18.20% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BUFQ or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 11.6% for BUFQ. Worst drawdown: BUFQ -15.7% vs VYM -58.8%.

Should I hold both BUFQ and VYM?

BUFQ and VYM have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFQ and VYM?

BUFQ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.

Which pays a higher dividend, BUFQ or VYM?

BUFQ yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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