BUFS 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

MetricBUFSVYMWinner
Expense Ratio1.01%0.04%
AUM$180M$79.0B
Dividend Yield0.00%2.86%
Holdings5568
YTD Return+10.45%+15.80%
1Y Return+19.29%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)8.2%14.6%
Max Drawdown-15.0%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 29, 2024Nov 10, 2006

BUFS vs VYM Performance

FT Vest Laddered Small Cap Moderate Buffer ETF (BUFS) 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 BUFS returned +19.29% while VYM returned +26.12%. Year to date, BUFS is up 10.45% 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 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 -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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BUFS charges 1.01% per year while VYM charges 0.04%. On a $10,000 position that is $101 vs $4 annually, a gap of $97 per year that compounds over a long holding period. On income, BUFS currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BUFS 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, BUFS or VYM?

BUFS has an expense ratio of 1.01% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $97 per year of difference.

Which performed better, BUFS or VYM?

Over the past year BUFS returned +19.29% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), BUFS annualized +11.55% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BUFS or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 8.2% for BUFS. Worst drawdown: BUFS -15.0% vs VYM -58.8%.

Should I hold both BUFS and VYM?

BUFS and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFS and VYM?

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

Which pays a higher dividend, BUFS or VYM?

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

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