BUFT vs VYM
FT Vest Buffered Allocation Defensive ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | BUFT | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.21% | 0.04% | |
| AUM | $156M | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 8 | 568 | |
| YTD Return | +6.50% | +15.80% | |
| 1Y Return | +10.10% | +26.12% | |
| 3Y Return (annualized) | +9.45% | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| Volatility (annualized) | 5.6% | 14.6% | |
| Max Drawdown | -10.4% | -58.8% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Oct 26, 2021 | Nov 10, 2006 |
BUFT vs VYM Performance
FT Vest Buffered Allocation Defensive ETF (BUFT) 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 BUFT returned +10.10% while VYM returned +26.12%. Year to date, BUFT is up 6.50% versus a gain of 15.80% for VYM.
Over three years, BUFT compounded at +9.45% per year against +18.25% for VYM. Across the full 5-year window we track, VYM has the edge at +7.07% annualized vs +5.83%. 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 5.6% for BUFT. 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 -10.4% for BUFT 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
BUFT charges 1.21% per year while VYM charges 0.04%. On a $10,000 position that is $121 vs $4 annually, a gap of $117 per year that compounds over a long holding period. On income, BUFT currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
BUFT and VYM share 0 holdings out of 565 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, BUFT or VYM?
BUFT has an expense ratio of 1.21% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $117 per year of difference.
Which performed better, BUFT or VYM?
Over the past year BUFT returned +10.10% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (5 years), BUFT annualized +5.83% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, BUFT or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.6% for BUFT. Worst drawdown: BUFT -10.4% vs VYM -58.8%.
Should I hold both BUFT and VYM?
BUFT and VYM have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BUFT and VYM?
BUFT and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 565 unique securities.
Which pays a higher dividend, BUFT or VYM?
BUFT yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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