PAPI vs SCHD
Parametric Equity Premium Income ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. PAPI offers more diversification with 193 holdings.
Side-by-Side Comparison
| Metric | PAPI | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.06% | |
| AUM | $455M | $108.7B | |
| Dividend Yield | 7.37% | 3.13% | |
| Holdings | 193 | 104 | |
| YTD Return | +13.46% | +27.67% | |
| 1Y Return | +15.05% | +29.56% | |
| 3Y Return (annualized) | - | +16.53% | |
| 5Y Return (annualized) | - | +9.95% | |
| Volatility (annualized) | 10.2% | 13.6% | |
| Max Drawdown | -14.3% | -33.4% | |
| Fund Family | Parametric | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | Oct 20, 2011 |
PAPI vs SCHD Performance
Parametric Equity Premium Income ETF (PAPI) is a ETF from Parametric and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year PAPI returned +15.05% while SCHD returned +29.56%. Year to date, PAPI is up 13.46% versus a gain of 27.67% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% 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 -33.4% for SCHD. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PAPI charges 0.29% per year while SCHD charges 0.06%. On a $10,000 position that is $29 vs $6 annually, a gap of $23 per year that compounds over a long holding period. On income, PAPI currently yields 7.37% against 3.13% for SCHD.
Holdings Overlap
PAPI and SCHD share 47 holdings out of 242 unique holdings combined, representing a 18.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PAPI or SCHD?
PAPI has an expense ratio of 0.29% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, PAPI or SCHD?
Over the past year PAPI returned +15.05% vs +29.56% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (3 years), PAPI annualized +12.34% vs +11.55% for SCHD. Past performance does not guarantee future results.
Which is riskier, PAPI or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs SCHD -33.4%.
Should I hold both PAPI and SCHD?
PAPI and SCHD have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAPI and SCHD?
PAPI and SCHD share 47 common holdings with a 18.5% weight overlap. Combined, they hold 242 unique securities.
Which pays a higher dividend, PAPI or SCHD?
PAPI yields 7.37% while SCHD yields 3.13%, so PAPI currently pays the higher dividend yield.
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