PAPI vs VOO
Parametric Equity Premium Income ETF vs Vanguard S&P 500 ETF
Which is better, PAPI or VOO?
Each has led over a different period.
VOO has a lower expense ratio. PAPI led over 1Y, VOO over 3Y and the full window. PAPI is less concentrated, with 8.1% of the fund in its ten largest positions against 39.1%.
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 | VOO |
|---|---|---|
| Expense Ratio | 0.29% | 0.03%Best |
| AUM | $552M | $1.0T |
| Dividend Yield | 7.33% | 1.05% |
| Holdings | 387 | 519 |
| YTD Return | +16.86%Best | +11.74% |
| 1Y Return | +18.52%Best | +12.07% |
| 3Y Return (annualized) | +13.48% | +21.38%Best |
| 5Y Return (annualized) | - | +11.69% |
| Volatility (annualized) | 11.2%Best | 12.2% |
| Max Drawdown | -14.3%Best | -18.7% |
| $10,000 over 3.1 years | $14,419 | $18,575Best |
| Top 10 Weight | 8.1%Best | 39.1% |
| Fund Family | Parametric | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 16, 2023 | Sep 7, 2010 |
Volatility and max drawdown, and the $10,000 over 3.1 years row, are measured over the window both funds cover: Oct 19, 2023 to Nov 12, 2026 (3.1 years).
PAPI vs VOO 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 3.1 years both funds cover.
PAPI vs VOO Performance
Parametric Equity Premium Income ETF (PAPI) is an ETF from Parametric and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PAPI returned +18.52% while VOO returned +12.07%. Year to date, PAPI is up 16.86% versus a gain of 11.74% for VOO.
Over three years, PAPI compounded at +13.48% per year against +21.38% for VOO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 12.2% compared with 11.2% 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 -18.7% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.21. They move largely independently of each other.
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 7.33% against 1.05% for VOO.
Holdings Overlap
60.8% of PAPI's money is in holdings VOO also owns. 25.8% of VOO's money is in holdings PAPI also owns.
The two portfolios partly overlap.
114 positions in common, counted across the 189 positions we hold weights for in PAPI and 506 in VOO, against full books of 387 and 519.
What only one of them owns
Our book lists 387 positions for VOO that do not appear in our book for PAPI (74.2% of the fund), and 69 for PAPI that do not appear in VOO (35.4%).
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 VOO | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 0.72% | 5.78% | 5.06% |
| GOOGLAlphabet Inc | 0.56% | 3.07% | 2.51% |
| XOMExxonmobil Corp. | 0.58% | 1.02% | 0.44% |
| JNJJohnson & Johnson - Common | 0.50% | 0.97% | 0.47% |
| ABBVAbbvie Inc. | 0.62% | 0.70% | 0.08% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.56% | 0.64% | 0.08% |
| CVXChevron Corp | 0.58% | 0.61% | 0.03% |
| COSTCostco Wholesale Corp. | 0.54% | 0.61% | 0.07% |
| MRKMerck & Company Inc | 0.58% | 0.54% | 0.04% |
| KOCoca Cola Co. | 0.59% | 0.51% | 0.08% |
60.8% of PAPI is already inside VOO.
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 VOO?
PAPI has an expense ratio of 0.29% while VOO charges 0.03%. VOO is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, PAPI or VOO?
Over the past year PAPI returned +18.52% vs +12.07% for VOO, so PAPI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAPI or VOO?
VOO has been the more volatile fund at 12.2% annualized versus 11.2% for PAPI. Worst drawdown: PAPI -14.3% vs VOO -18.7%.
Should I hold both PAPI and VOO?
PAPI and VOO have a monthly-return correlation of 0.21, 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 VOO?
60.8% of PAPI's money is in holdings VOO also owns. 25.8% of VOO's is in holdings PAPI also owns. They hold 114 positions in common, counted across the 189 positions we hold weights for in PAPI and 506 in VOO.
Which pays a higher dividend, PAPI or VOO?
PAPI yields 7.33% while VOO yields 1.05%, so PAPI currently pays the higher dividend yield.
Is VOO better than PAPI?
VOO has a lower expense ratio. PAPI led over 1Y, VOO over 3Y and the full window. PAPI is less concentrated, with 8.1% of the fund in its ten largest positions against 39.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.