BUFX vs. FMKT

Last updated Jul 15, 2026

BUFX (FT Vest Laddered Enhance & Moderate Buffer ETF) and FMKT (The Free Markets ETF) are both exchange-traded funds - BUFX is a Defined Outcome fund managed by First Trust, while FMKT is a Large Cap Blend Equities fund. Over the past year, BUFX returned 9.47% vs 5.28% for FMKT. A 0.63 correlation means they provide meaningful diversification when combined. BUFX charges 0.96%/yr vs 0.76%/yr for FMKT.

Performance

BUFX vs. FMKT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Vest Laddered Enhance & Moderate Buffer ETF (BUFX) and The Free Markets ETF (FMKT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BUFX achieves a 4.76% return, which is significantly higher than FMKT's 1.79% return.

BUFX

• 1D: 0.09%
• 1M: 0.86%
• 6M: 4.31%
• YTD: 4.76%
• 1Y: 9.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FMKT

• 1D: 0.35%
• 1M: 0.40%
• 6M: -2.44%
• YTD: 1.79%
• 1Y: 5.28%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

BUFX vs. FMKT - Yearly Performance Comparison

	2026 (YTD)	2025
BUFX FT Vest Laddered Enhance & Moderate Buffer ETF	4.76%	5.43%
FMKT The Free Markets ETF	1.79%	7.20%

Correlation

The correlation between BUFX and FMKT is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (All Time) Calculated using the full available price history since Jun 25, 2025	0.63

The correlation between BUFX and FMKT has been stable across timeframes, ranging from 0.62 to 0.63 - a consistent structural relationship.

Return for Risk

BUFX vs. FMKT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BUFX

BUFX Risk / Return Rank: 90
BUFX Sharpe Ratio Rank: 90
BUFX Sortino Ratio Rank: 93
BUFX Omega Ratio Rank: 93
BUFX Calmar Ratio Rank: 80
BUFX Martin Ratio Rank: 93

FMKT

FMKT Risk / Return Rank: 14
FMKT Sharpe Ratio Rank: 14
FMKT Sortino Ratio Rank: 14
FMKT Omega Ratio Rank: 13
FMKT Calmar Ratio Rank: 13
FMKT Martin Ratio Rank: 14

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BUFX vs. FMKT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Vest Laddered Enhance & Moderate Buffer ETF (BUFX) and The Free Markets ETF (FMKT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	BUFX	FMKT	Difference
Sharpe ratio: Return per unit of total volatility	2.37	0.27	+2.09
Sortino ratio: Return per unit of downside risk	3.72	0.52	+3.19
Omega ratio: Gain probability vs. loss probability	1.52	1.06	+0.45
Calmar ratio: Return relative to maximum drawdown	3.31	0.30	+3.02
Martin ratio: Return relative to average drawdown	19.50	0.75	+18.74

BUFX vs. FMKT - Sharpe Ratio Comparison

The current BUFX Sharpe Ratio is 2.37, which is higher than the FMKT Sharpe Ratio of 0.27. The chart below compares the historical Sharpe Ratios of BUFX and FMKT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

BUFX vs. FMKT - Drawdown Comparison

The maximum BUFX drawdown since its inception was -2.87%, smaller than the maximum FMKT drawdown of -17.79%. Use the drawdown chart below to compare losses from any high point for BUFX and FMKT.

Drawdown Indicators

	BUFX	FMKT	Difference
Max Drawdown Largest peak-to-trough decline	-2.87%	-17.79%	+14.92%
Max Drawdown (1Y) Largest decline over 1 year	-2.87%	-17.79%	+14.92%
Current Drawdown Current decline from peak	-0.02%	-7.64%	+7.62%
Average Drawdown Average peak-to-trough decline	-0.24%	-5.49%	+5.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.49%	7.05%	-6.56%

Volatility

BUFX vs. FMKT - Volatility Comparison

The current volatility for FT Vest Laddered Enhance & Moderate Buffer ETF (BUFX) is 0.96%, while The Free Markets ETF (FMKT) has a volatility of 2.98%. This indicates that BUFX experiences smaller price fluctuations and is considered to be less risky than FMKT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BUFX	FMKT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.96%	2.98%	-2.02%
Volatility (6M) Calculated over the trailing 6-month period	3.39%	14.83%	-11.44%
Volatility (1Y) Calculated over the trailing 1-year period	4.02%	19.55%	-15.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	3.97%	19.19%	-15.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	3.97%	19.19%	-15.22%

BUFX vs. FMKT - Expense Ratio Comparison

BUFX has a 0.96% expense ratio, which is higher than FMKT's 0.76% expense ratio.

Dividends

BUFX vs. FMKT - Dividend Comparison

BUFX has not paid dividends to shareholders, while FMKT's dividend yield for the trailing twelve months is around 2.11%.

Position	TTM	2025
BUFX FT Vest Laddered Enhance & Moderate Buffer ETF	0.00%	0.00%
FMKT The Free Markets ETF	2.11%	2.15%

Frequently Asked Questions

Can I hold both BUFX and FMKT in my portfolio?

BUFX and FMKT have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BUFX or FMKT?

FMKT has higher volatility (2.98%) compared to BUFX (0.96%). In terms of maximum drawdown, BUFX dropped -2.87% vs FMKT's -17.79%.

Which ETF is better, BUFX or FMKT?

On 1-year performance, BUFX leads with 9.47% vs 5.28% for FMKT. On fees, FMKT is cheaper at 0.76% per year. On volatility, BUFX has been the lower-risk option at 0.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, BUFX or FMKT?

Over the 1-year period, BUFX has performed better with a 9.47% return vs 5.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, BUFX or FMKT?

FMKT is cheaper with a 0.76% expense ratio, compared with 0.96% for BUFX.

Which ETF pays a higher dividend yield, BUFX or FMKT?

FMKT has the higher dividend yield at 2.11%, compared with 0.00% for BUFX.

What is the main difference between BUFX and FMKT?

BUFX is categorized as Defined Outcome, while FMKT is Large Cap Blend Equities. Their fees differ too: 0.96% for BUFX and 0.76% for FMKT.

Which has better risk-adjusted returns?

BUFX currently has the higher Sharpe Ratio (2.37 vs 0.27), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.