BUFS vs SPY
BUFS vs SPY
FT Vest Laddered Small Cap Moderate Buffer ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | BUFS | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.01% | 0.09% | |
| AUM | $180M | $789.1B | |
| Dividend Yield | 0.00% | 1.01% | |
| Holdings | 5 | 505 | |
| YTD Return | +10.45% | +13.79% | |
| 1Y Return | +19.29% | +23.66% | |
| 3Y Return (annualized) | - | +21.40% | |
| 5Y Return (annualized) | - | +13.37% | |
| Volatility (annualized) | 8.2% | 15.3% | |
| Max Drawdown | -15.0% | -56.5% | |
| Fund Family | First Trust Portfolios (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | May 29, 2024 | Jan 22, 1993 |
BUFS vs SPY Performance
FT Vest Laddered Small Cap Moderate Buffer ETF (BUFS) is a ETF from First Trust Portfolios (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year BUFS returned +19.29% while SPY returned +23.66%. Year to date, BUFS is up 10.45% 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 8.2% for BUFS. 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 -15.0% for BUFS 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFS charges 1.01% per year while SPY charges 0.09%. On a $10,000 position that is $101 vs $9 annually, a gap of $92 per year that compounds over a long holding period. On income, BUFS currently yields 0.00% against 1.01% for SPY.
Holdings Overlap
BUFS and SPY share 0 holdings out of 507 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, BUFS or SPY?
BUFS has an expense ratio of 1.01% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, BUFS or SPY?
Over the past year BUFS returned +19.29% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (2 years), BUFS annualized +11.55% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, BUFS or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 8.2% for BUFS. Worst drawdown: BUFS -15.0% vs SPY -56.5%.
Should I hold both BUFS and SPY?
BUFS and SPY have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFS and SPY?
BUFS and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, BUFS or SPY?
BUFS yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.
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