PAPI vs VTI

Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricPAPIVTIWinner
Expense Ratio0.29%0.03%
AUM$442M$663.5B
Dividend Yield7.52%1.07%
Holdings1943,543
YTD Return+11.32%+13.39%
1Y Return+18.45%+23.21%
3Y Return (annualized)-+20.65%
5Y Return (annualized)-+12.18%
Volatility (annualized)10.2%15.3%
Max Drawdown-14.3%-56.6%
Fund FamilyParametricVanguard (US)
CategoryEquityEquity
InceptionOct 16, 2023May 24, 2001

PAPI vs VTI Performance

Parametric Equity Premium Income ETF (PAPI) is a ETF from Parametric and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PAPI returned +18.45% while VTI returned +23.21%. Year to date, PAPI is up 11.32% versus a gain of 13.39% for VTI.

Risk: Volatility and Drawdowns

VTI 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 -56.6% for VTI. 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

PAPI charges 0.29% per year while VTI 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 1.07% for VTI.

Holdings Overlap

15.4%overlap

PAPI and VTI share 155 holdings out of 2818 unique holdings combined, representing a 15.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in PAPIWeight in VTIDifference
MSFT0.45%3.81%3.36%
GOOGL0.67%2.88%2.21%
CSCO0.78%0.57%0.21%
JNJProProPro
XOMProProPro
ABBVProProPro
COSTProProPro
TXNProProPro
GLWProProPro
CVXProProPro
See all 10 holdings PAPI shares with VTI
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, PAPI or VTI?

PAPI has an expense ratio of 0.29% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $26 per year of difference.

Which performed better, PAPI or VTI?

Over the past year PAPI returned +18.45% vs +23.21% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), PAPI annualized +11.85% vs +8.11% for VTI. Past performance does not guarantee future results.

Which is riskier, PAPI or VTI?

VTI has been the more volatile fund at 15.3% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs VTI -56.6%.

Should I hold both PAPI and VTI?

PAPI and VTI have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between PAPI and VTI?

PAPI and VTI share 155 common holdings with a 15.4% weight overlap. Combined, they hold 2818 unique securities.

Which pays a higher dividend, PAPI or VTI?

PAPI yields 7.52% while VTI yields 1.07%, so PAPI currently pays the higher dividend yield.

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