IBUF 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

MetricIBUFVYMWinner
Expense Ratio0.85%0.04%
AUM$109M$79.0B
Dividend Yield0.00%2.86%
Holdings6568
YTD Return+9.64%+16.53%
1Y Return+14.45%+25.03%
3Y Return (annualized)-+18.54%
5Y Return (annualized)-+12.25%
Volatility (annualized)3.4%14.6%
Max Drawdown-5.9%-58.8%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionJul 1, 2024Nov 10, 2006

IBUF vs VYM Performance

Innovator International Developed 10 Buffer ETF - Quarterly (IBUF) is a ETF from Innovator ETFs Trust and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year IBUF returned +14.45% while VYM returned +25.03%. Year to date, IBUF is up 9.64% versus a gain of 16.53% for VYM.

Risk: Volatility and Drawdowns

VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 3.4% for IBUF. 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 -5.9% for IBUF 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IBUF charges 0.85% per year while VYM charges 0.04%. On a $10,000 position that is $85 vs $4 annually, a gap of $81 per year that compounds over a long holding period. On income, IBUF currently yields 0.00% against 2.86% for VYM.

Frequently Asked Questions

Which is cheaper, IBUF or VYM?

IBUF has an expense ratio of 0.85% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $81 per year of difference.

Which performed better, IBUF or VYM?

Over the past year IBUF returned +14.45% vs +25.03% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), IBUF annualized +12.40% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, IBUF or VYM?

VYM has been the more volatile fund at 14.6% annualized versus 3.4% for IBUF. Worst drawdown: IBUF -5.9% vs VYM -58.8%.

Should I hold both IBUF and VYM?

IBUF and VYM have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, IBUF or VYM?

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

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