PAPI vs SPY
PAPI vs SPY
Parametric Equity Premium Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PAPI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.09% | |
| AUM | $442M | $789.1B | |
| Dividend Yield | 7.52% | 1.01% | |
| Holdings | 194 | 505 | |
| YTD Return | +11.32% | +13.10% | |
| 1Y Return | +18.45% | +22.80% | |
| 3Y Return (annualized) | - | +20.98% | |
| 5Y Return (annualized) | - | +13.20% | |
| Volatility (annualized) | 10.2% | 15.3% | |
| Max Drawdown | -14.3% | -56.5% | |
| Fund Family | Parametric | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | Jan 22, 1993 |
PAPI vs SPY Performance
Parametric Equity Premium Income ETF (PAPI) is a ETF from Parametric and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year PAPI returned +18.45% while SPY returned +22.80%. Year to date, PAPI is up 11.32% versus a gain of 13.10% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 10.2% for PAPI. 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 -14.3% for PAPI 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 0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAPI charges 0.29% per year while SPY charges 0.09%. On a $10,000 position that is $29 vs $9 annually, a gap of $20 per year that compounds over a long holding period. On income, PAPI currently yields 7.52% against 1.01% for SPY.
Holdings Overlap
PAPI and SPY share 115 holdings out of 578 unique holdings combined, representing a 17.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PAPI | Weight in SPY | Difference |
|---|---|---|---|
| MSFT | 0.45% | 4.43% | 3.98% |
| GOOGL | 0.67% | 3.32% | 2.65% |
| CSCO | 0.78% | 0.69% | 0.09% |
| JNJ | Pro | Pro | Pro |
| XOM | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| CVX | Pro | Pro | Pro |
See all 10 holdings PAPI shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, PAPI or SPY?
PAPI has an expense ratio of 0.29% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, PAPI or SPY?
Over the past year PAPI returned +18.45% vs +22.80% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), PAPI annualized +11.85% vs +8.83% for SPY. Past performance does not guarantee future results.
Which is riskier, PAPI or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs SPY -56.5%.
Should I hold both PAPI and SPY?
PAPI and SPY have a monthly-return correlation of 0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAPI and SPY?
PAPI and SPY share 115 common holdings with a 17.2% weight overlap. Combined, they hold 578 unique securities.
Which pays a higher dividend, PAPI or SPY?
PAPI yields 7.52% while SPY yields 1.01%, so PAPI currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.