BGLD vs IBUF

BGLDDFT Vest Gold Strategy Quarterly Buffer ETF

IBUFBInnovator International Developed 10 Buffer ETF

In short

BGLD Buffer ETFs almost always wrap stocks. BGLD wraps gold: it aims to track the SPDR Gold Trust's price up to a cap reset every quarter, while cushioning a slice of GLD's losses once the first 5% is gone.

IBUF Most buffer ETFs aim at the S&P 500. IBUF looks overseas, using the iShares MSCI EAFE ETF as its reference and buffering the first 10% of losses over each quarterly outcome period, with upside capped in return.

Stated mandate

BGLD The fund seeks to match the price return of the SPDR® Gold Trust, before fees and expenses, subject to a predetermined upside cap and protection against specified losses during the target outcome period.

IBUF The Fund uses a quarterly defined-outcome strategy based on the iShares MSCI EAFE ETF. It seeks to provide gains up to a cap while buffering the first 10% of reference-asset losses for investors holding through the full outcome period.

Why people hold it

• BGLD A rare shape: defined-outcome mechanics pointed at gold instead of the S&P 500. It targets GLD's price return up to a preset cap and buffers GLD losses from -5% to -15% each period.ftportfolios.com
• Quarterly resets, not annual. The cap and buffer refresh four times a year, so holders are not tied to terms struck twelve months earlier.ftportfolios.com
• Running since 2021, so the strategy has been tested through real gold swings rather than a backtest. Under the hood: Treasuries, cash, and FLEX options on GLD held via a wholly owned subsidiary.ftportfolios.com

• IBUF Buffer funds crowd around US large caps. This one references the iShares MSCI EAFE ETF, so the 10% cushion sits on developed markets outside the US.
• The outcome period runs a quarter, not a year, so the buffer and the cap reset four times annually rather than once.
• At 0.85% a year, it comes in under the median fee among the buffer funds we track.
• Sits among the strongest implementations in its buffer-fund peer group on our review.

Worth knowing

• BGLD The cushion is a middle slice, not a floor. GLD's first 5% of decline lands on you, and the buffer stops working past -15%.ftportfolios.com
• Upside is capped, and the cap is set at each period's start. Buy mid-quarter and your own cap and remaining buffer differ from the headline terms.ftportfolios.com
• 0.91% a year sits at the pricier end of the buffer aisle, and the fund trades thinly, so limit orders do real work here.

• IBUF The price of the cushion is a ceiling. Gains above each quarter's cap are given up, and that cap is reset at the start of every outcome period.
• The 10% buffer is designed for investors who hold a full outcome period. Buy mid-quarter and your actual cushion and cap differ from the stated terms.
• Launched in July 2024 and lightly traded, so the track record is short and spreads can run wider than on large index funds.

Full BGLD profile⁠

Full IBUF profile⁠