PAPI vs SPY
Parametric Equity Premium Income ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, PAPI or SPY?
SPY has been ahead.
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% of the fund in its ten largest positions against 37.8%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | PAPI | SPY |
|---|---|---|
| Expense Ratio | 0.29% | 0.09%Best |
| AUM | $473M | $804.7B |
| Dividend Yield | 7.35% | 0.98% |
| Holdings | 193 | 505 |
| YTD Return | +10.80% | +12.22%Best |
| 1Y Return | +13.64% | +16.97%Best |
| 3Y Return (annualized) | +11.18% | +21.16%Best |
| 5Y Return (annualized) | - | +13.00% |
| Volatility (annualized) | 10.2%Best | 12.4% |
| Max Drawdown | -14.3%Best | -18.8% |
| $10,000 over 2.9 years | $13,598 | $18,447Best |
| Top 10 Weight | 7.7%Best | 37.8% |
| Fund Family | Parametric | State Street Investment Management |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 16, 2023 | Jan 22, 1993 |
Volatility and max drawdown, and the $10,000 over 2.9 years row, are measured over the window both funds cover: Oct 19, 2023 to Sep 17, 2026 (2.9 years).
PAPI vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2.9 years both funds cover.
PAPI vs SPY Performance
Parametric Equity Premium Income ETF (PAPI) is an ETF from Parametric and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PAPI returned +13.64% while SPY returned +16.97%. Year to date, PAPI is up 10.80% versus a gain of 12.22% for SPY.
Over three years, PAPI compounded at +11.18% per year against +21.16% for SPY.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 12.4% 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 -18.8% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.28. They move largely independently of each other.
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 7.35% against 0.98% for SPY.
Holdings Overlap
60.3% of PAPI's money is in holdings SPY also owns. 26.1% of SPY's money is in holdings PAPI also owns.
The two portfolios partly overlap.
114 positions in common, counted across the 188 positions we hold weights for in PAPI and 504 in SPY, against full books of 193 and 505.
What only one of them owns
Our book lists 384 positions for SPY that do not appear in our book for PAPI (73.2% of the fund), and 69 for PAPI that do not appear in SPY (36.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in PAPI | Weight in SPY | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 0.66% | 5.66% | 5.00% |
| GOOGLAlphabet Inc,class A | 0.53% | 2.99% | 2.46% |
| XOMExxon Mobil Corp. | 0.53% | 1.04% | 0.51% |
| JNJJohnson & Johnson - Common | 0.53% | 0.99% | 0.46% |
| ABBVAbbvie Inc. | 0.57% | 0.70% | 0.13% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.54% | 0.66% | 0.12% |
| MRKMerck & Company Inc | 0.60% | 0.56% | 0.04% |
| CVXChevron Corp | 0.55% | 0.60% | 0.05% |
| COSTCostco Wholesale Corp. | 0.51% | 0.63% | 0.12% |
| CRMSalesforce Inc Crm Us Equity | 0.79% | 0.32% | 0.47% |
60.3% of PAPI is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $20 a year on a $10,000 investment.
Which performed better, PAPI or SPY?
Over the past year PAPI returned +13.64% vs +16.97% for SPY, so SPY leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAPI or SPY?
SPY has been the more volatile fund at 12.4% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs SPY -18.8%.
Should I hold both PAPI and SPY?
PAPI and SPY have a monthly-return correlation of 0.28, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PAPI and SPY?
60.3% of PAPI's money is in holdings SPY also owns. 26.1% of SPY's is in holdings PAPI also owns. They hold 114 positions in common, counted across the 188 positions we hold weights for in PAPI and 504 in SPY.
Which pays a higher dividend, PAPI or SPY?
PAPI yields 7.35% while SPY yields 0.98%, so PAPI currently pays the higher dividend yield.
Is SPY better than PAPI?
SPY has a lower expense ratio. SPY led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% of the fund in its ten largest positions against 37.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.