Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricBUFZSPYWinner
Expense Ratio0.95%0.09%
AUM$1.0B$789.1B
Dividend Yield0.00%1.01%
Holdings13505
YTD Return+7.04%+13.79%
1Y Return+12.51%+23.66%
3Y Return (annualized)-+21.40%
5Y Return (annualized)-+13.37%
Volatility (annualized)5.5%15.3%
Max Drawdown-10.1%-56.5%
Fund FamilyFirst Trust Portfolios (US)State Street Investment Management
CategoryEquityEquity
InceptionOct 25, 2023Jan 22, 1993

BUFZ vs SPY Performance

FT Vest Laddered Moderate Buffer ETF (BUFZ) 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 BUFZ returned +12.51% while SPY returned +23.66%. Year to date, BUFZ is up 7.04% 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 5.5% for BUFZ. 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 -10.1% for BUFZ 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

BUFZ charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, BUFZ currently yields 0.00% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

BUFZ and SPY share 0 holdings out of 515 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, BUFZ or SPY?

BUFZ has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.

Which performed better, BUFZ or SPY?

Over the past year BUFZ returned +12.51% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), BUFZ annualized +14.07% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, BUFZ or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 5.5% for BUFZ. Worst drawdown: BUFZ -10.1% vs SPY -56.5%.

Should I hold both BUFZ and SPY?

BUFZ and SPY have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between BUFZ and SPY?

BUFZ and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 515 unique securities.

Which pays a higher dividend, BUFZ or SPY?

BUFZ yields 0.00% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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