PAPI vs VTI
Parametric Equity Premium Income ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, PAPI or VTI?
VTI has been ahead.
VTI has a lower expense ratio. VTI led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% of the fund in its ten largest positions against 33.3%.
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 | VTI |
|---|---|---|
| Expense Ratio | 0.29% | 0.03%Best |
| AUM | $473M | $666.9B |
| Dividend Yield | 7.35% | 1.03% |
| Holdings | 193 | 3,543 |
| YTD Return | +10.55% | +11.06%Best |
| 1Y Return | +13.79% | +15.41%Best |
| 3Y Return (annualized) | +11.10% | +20.48%Best |
| 5Y Return (annualized) | - | +11.52% |
| Volatility (annualized) | 10.2%Best | 12.9% |
| Max Drawdown | -14.3%Best | -19.3% |
| $10,000 over 2.9 years | $13,570 | $18,189Best |
| Top 10 Weight | 7.7%Best | 33.3% |
| Fund Family | Parametric | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Oct 16, 2023 | May 24, 2001 |
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 16, 2026 (2.9 years).
PAPI vs VTI 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 VTI Performance
Parametric Equity Premium Income ETF (PAPI) is an ETF from Parametric and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year PAPI returned +13.79% while VTI returned +15.41%. Year to date, PAPI is up 10.55% versus a gain of 11.06% for VTI.
Over three years, PAPI compounded at +11.10% per year against +20.48% for VTI.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 12.9% 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 -19.3% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.33. They move together some of the time, and apart the rest.
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 7.35% against 1.03% for VTI.
Holdings Overlap
94.1% of PAPI's money is in holdings VTI also owns. 23.8% of VTI's money is in holdings PAPI also owns.
Most of PAPI is already inside VTI. Owning both mostly buys the same companies twice.
179 positions in common, counted across the 188 positions we hold weights for in PAPI and 3,463 in VTI, against full books of 193 and 3,543.
What only one of them owns
Our book lists 988 positions for VTI that do not appear in our book for PAPI (73.7% of the fund), and 4 for PAPI that do not appear in VTI (3.1%).
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 VTI | Difference |
|---|---|---|---|
| MSFTMicrosoft Corp | 0.66% | 4.79% | 4.13% |
| GOOGLAlphabet Inc,class A | 0.53% | 2.90% | 2.37% |
| XOMExxon Mobil Corp. | 0.53% | 0.89% | 0.36% |
| JNJJohnson & Johnson - Common | 0.53% | 0.86% | 0.33% |
| ABBVAbbvie Inc. | 0.57% | 0.61% | 0.04% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.54% | 0.57% | 0.03% |
| COSTCostco Wholesale Corp. | 0.51% | 0.59% | 0.08% |
| CVXChevron Corp | 0.55% | 0.52% | 0.03% |
| MRKMerck & Company Inc | 0.60% | 0.45% | 0.15% |
| CRMSalesforce Inc Crm Us Equity | 0.79% | 0.20% | 0.59% |
94.1% of PAPI is already inside VTI.
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 VTI?
PAPI has an expense ratio of 0.29% while VTI charges 0.03%. VTI is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, PAPI or VTI?
Over the past year PAPI returned +13.79% vs +15.41% for VTI, so VTI leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAPI or VTI?
VTI has been the more volatile fund at 12.9% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs VTI -19.3%.
Should I hold both PAPI and VTI?
PAPI and VTI have a monthly-return correlation of 0.33, 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 VTI?
94.1% of PAPI's money is in holdings VTI also owns. 23.8% of VTI's is in holdings PAPI also owns. They hold 179 positions in common, counted across the 188 positions we hold weights for in PAPI and 3,463 in VTI.
Which pays a higher dividend, PAPI or VTI?
PAPI yields 7.35% while VTI yields 1.03%, so PAPI currently pays the higher dividend yield.
Is VTI better than PAPI?
VTI has a lower expense ratio. VTI led over 1Y, 3Y and the full window. PAPI is less concentrated, with 7.7% of the fund in its ten largest positions against 33.3%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.