PAPI vs VOO
PAPI vs VOO
Parametric Equity Premium Income ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | PAPI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.03% | |
| AUM | $442M | $979.0B | |
| Dividend Yield | 7.52% | 1.09% | |
| Holdings | 194 | 509 | |
| YTD Return | +11.32% | +13.11% | |
| 1Y Return | +18.45% | +22.88% | |
| 3Y Return (annualized) | - | +21.08% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 10.2% | 14.1% | |
| Max Drawdown | -14.3% | -34.3% | |
| Fund Family | Parametric | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | Sep 7, 2010 |
PAPI vs VOO Performance
Parametric Equity Premium Income ETF (PAPI) is a ETF from Parametric and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year PAPI returned +18.45% while VOO returned +22.88%. Year to date, PAPI is up 11.32% versus a gain of 13.11% for VOO.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAPI charges 0.29% per year while VOO charges 0.03%. On a $10,000 position that is $29 vs $3 annually, a gap of $26 per year that compounds over a long holding period. On income, PAPI currently yields 7.52% against 1.09% for VOO.
Holdings Overlap
PAPI and VOO share 117 holdings out of 578 unique holdings combined, representing a 17.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PAPI | Weight in VOO | Difference |
|---|---|---|---|
| MSFT | 0.45% | 4.30% | 3.85% |
| GOOGL | 0.67% | 3.25% | 2.58% |
| CSCO | 0.78% | 0.72% | 0.06% |
| JNJ | Pro | Pro | Pro |
| XOM | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| KO | Pro | Pro | Pro |
| GLW | Pro | Pro | Pro |
See all 10 holdings PAPI shares with VOO 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 VOO?
PAPI has an expense ratio of 0.29% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, PAPI or VOO?
Over the past year PAPI returned +18.45% vs +22.88% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), PAPI annualized +11.85% vs +13.54% for VOO. Past performance does not guarantee future results.
Which is riskier, PAPI or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs VOO -34.3%.
Should I hold both PAPI and VOO?
PAPI and VOO have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAPI and VOO?
PAPI and VOO share 117 common holdings with a 17.1% weight overlap. Combined, they hold 578 unique securities.
Which pays a higher dividend, PAPI or VOO?
PAPI yields 7.52% while VOO yields 1.09%, so PAPI currently pays the higher dividend yield.
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