BUFY 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

MetricBUFYVYMWinner
Expense Ratio1.00%0.04%
AUM$146M$79.0B
Dividend Yield0.00%2.86%
Holdings5568
YTD Return+7.18%+15.80%
1Y Return+13.00%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)6.2%14.6%
Max Drawdown-8.0%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryAlternativeEquity
InceptionSep 25, 2024Nov 10, 2006

BUFY vs VYM Performance

FT Vest Laddered International Moderate Buffer ETF (BUFY) 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 BUFY returned +13.00% while VYM returned +26.12%. Year to date, BUFY is up 7.18% 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 6.2% for BUFY. 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 -8.0% for BUFY 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BUFY 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, BUFY currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BUFY 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, BUFY or VYM?

BUFY 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, BUFY or VYM?

Over the past year BUFY returned +13.00% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), BUFY annualized +9.54% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BUFY or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 6.2% for BUFY. Worst drawdown: BUFY -8.0% vs VYM -58.8%.

Should I hold both BUFY and VYM?

BUFY and VYM have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFY and VYM?

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

Which pays a higher dividend, BUFY or VYM?

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

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