PAPI vs QQQ
PAPI vs QQQ
Parametric Equity Premium Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. PAPI offers more diversification with 190 holdings.
Side-by-Side Comparison
| Metric | PAPI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.18% | |
| AUM | $442M | $455.8B | |
| Dividend Yield | 7.52% | 0.41% | |
| Holdings | 194 | 108 | |
| YTD Return | +11.53% | +18.20% | |
| 1Y Return | +18.24% | +27.63% | |
| 3Y Return (annualized) | - | +25.54% | |
| 5Y Return (annualized) | - | +15.12% | |
| Volatility (annualized) | 10.2% | 30.6% | |
| Max Drawdown | -14.3% | -83.0% | |
| Fund Family | Parametric | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | Mar 10, 1999 |
PAPI vs QQQ Performance
Parametric Equity Premium Income ETF (PAPI) is a ETF from Parametric and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year PAPI returned +18.24% while QQQ returned +27.63%. Year to date, PAPI is up 11.53% versus a gain of 18.20% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% 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 -83.0% for QQQ. 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 -0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
PAPI charges 0.29% per year while QQQ charges 0.18%. On a $10,000 position that is $29 vs $18 annually, a gap of $11 per year that compounds over a long holding period. On income, PAPI currently yields 7.52% against 0.41% for QQQ.
Holdings Overlap
PAPI and QQQ share 20 holdings out of 273 unique holdings combined, representing a 8.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PAPI | Weight in QQQ | Difference |
|---|---|---|---|
| MSFT | 0.45% | 4.65% | 4.20% |
| GOOGL | 0.67% | 3.29% | 2.62% |
| CSCO | 0.78% | 2.08% | 1.30% |
| COST | Pro | Pro | Pro |
| TXN | Pro | Pro | Pro |
| LIN:IE | Pro | Pro | Pro |
| ADI | Pro | Pro | Pro |
| QCOM | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| GILD | Pro | Pro | Pro |
See all 10 holdings PAPI shares with QQQ 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 QQQ?
PAPI has an expense ratio of 0.29% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $11 per year of difference.
Which performed better, PAPI or QQQ?
Over the past year PAPI returned +18.24% vs +27.63% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (3 years), PAPI annualized +11.91% vs +13.11% for QQQ. Past performance does not guarantee future results.
Which is riskier, PAPI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs QQQ -83.0%.
Should I hold both PAPI and QQQ?
PAPI and QQQ have a monthly-return correlation of -0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAPI and QQQ?
PAPI and QQQ share 20 common holdings with a 8.7% weight overlap. Combined, they hold 273 unique securities.
Which pays a higher dividend, PAPI or QQQ?
PAPI yields 7.52% while QQQ yields 0.41%, so PAPI currently pays the higher dividend yield.
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