BUFZ 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

MetricBUFZVYMWinner
Expense Ratio0.95%0.04%
AUM$1.0B$79.0B
Dividend Yield0.00%2.86%
Holdings13568
YTD Return+7.04%+15.80%
1Y Return+12.51%+26.12%
3Y Return (annualized)-+18.25%
5Y Return (annualized)-+12.51%
Volatility (annualized)5.5%14.6%
Max Drawdown-10.1%-58.8%
Fund FamilyFirst Trust Portfolios (US)Vanguard (US)
CategoryEquityEquity
InceptionOct 25, 2023Nov 10, 2006

BUFZ vs VYM Performance

FT Vest Laddered Moderate Buffer ETF (BUFZ) 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 BUFZ returned +12.51% while VYM returned +26.12%. Year to date, BUFZ is up 7.04% 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 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 -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 0.75. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BUFZ charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, BUFZ currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

BUFZ and VYM share 0 holdings out of 570 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 VYM?

BUFZ has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.

Which performed better, BUFZ or VYM?

Over the past year BUFZ returned +12.51% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), BUFZ annualized +14.07% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, BUFZ or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 5.5% for BUFZ. Worst drawdown: BUFZ -10.1% vs VYM -58.8%.

Should I hold both BUFZ and VYM?

BUFZ and VYM have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BUFZ and VYM?

BUFZ and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 570 unique securities.

Which pays a higher dividend, BUFZ or VYM?

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

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