PAPI vs VTI
Parametric Equity Premium Income ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | PAPI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.03% | |
| AUM | $455M | $666.9B | |
| Dividend Yield | 7.37% | 1.07% | |
| Holdings | 193 | 3,543 | |
| YTD Return | +13.46% | +13.86% | |
| 1Y Return | +15.05% | +20.74% | |
| 3Y Return (annualized) | - | +21.66% | |
| 5Y Return (annualized) | - | +11.90% | |
| Volatility (annualized) | 10.2% | 15.3% | |
| Max Drawdown | -14.3% | -56.6% | |
| Fund Family | Parametric | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | May 24, 2001 |
PAPI vs VTI Performance
Parametric Equity Premium Income ETF (PAPI) is a ETF from Parametric and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year PAPI returned +15.05% while VTI returned +20.74%. Year to date, PAPI is up 13.46% versus a gain of 13.86% 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 0.31. 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 7.37% against 1.07% for VTI.
Holdings Overlap
PAPI and VTI share 157 holdings out of 2819 unique holdings combined, representing a 15.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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 +15.05% vs +20.74% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (3 years), PAPI annualized +12.34% 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 0.31, 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 157 common holdings with a 15.5% weight overlap. Combined, they hold 2819 unique securities.
Which pays a higher dividend, PAPI or VTI?
PAPI yields 7.37% while VTI yields 1.07%, so PAPI currently pays the higher dividend yield.
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