PAPI vs VYM
Parametric Equity Premium Income ETF vs Vanguard High Dividend Yield ETF
Which is better, PAPI or VYM?
Large Cap Blend against Large Cap Value.
VYM has a lower expense ratio. PAPI led over 1Y, VYM over 3Y and the full window. PAPI is less concentrated, with 8.1% of the fund in its ten largest positions against 25.8%.
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 | VYM |
|---|---|---|
| Expense Ratio | 0.29% | 0.04%Best |
| AUM | $552M | $95.8B |
| Dividend Yield | 7.33% | 2.23% |
| Holdings | 387 | 610 |
| YTD Return | +16.86%Best | +16.08% |
| 1Y Return | +18.52%Best | +18.40% |
| 3Y Return (annualized) | +13.48% | +20.47%Best |
| 5Y Return (annualized) | - | +11.53% |
| Volatility (annualized) | 11.2% | 11.0%Best |
| Max Drawdown | -14.3%Best | -14.5% |
| $10,000 over 3.1 years | $14,419 | $17,639Best |
| Top 10 Weight | 8.1%Best | 25.8% |
| Fund Family | Parametric | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Oct 16, 2023 | Nov 10, 2006 |
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 VYM 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 VYM Performance
Parametric Equity Premium Income ETF (PAPI) is an ETF from Parametric and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PAPI returned +18.52% while VYM returned +18.40%. Year to date, PAPI is up 16.86% versus a gain of 16.08% for VYM.
Over three years, PAPI compounded at +13.48% per year against +20.47% for VYM.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PAPI has been the more volatile fund, with annualized monthly volatility of 11.2% compared with 11.0% for VYM. 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 -14.5% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.81. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PAPI charges 0.29% per year while VYM charges 0.04%. On a $10,000 position that is $29 vs $4 annually, a gap of $25 per year that compounds over a long holding period. On income, PAPI currently yields 7.33% against 2.23% for VYM.
Holdings Overlap
81.0% of PAPI's money is in holdings VYM also owns. 41.0% of VYM's money is in holdings PAPI also owns.
Most of PAPI is already inside VYM. Owning both mostly buys the same companies twice.
156 positions in common, counted across the 189 positions we hold weights for in PAPI and 602 in VYM, against full books of 387 and 610.
What only one of them owns
Our book lists 422 positions for VYM that do not appear in our book for PAPI (57.7% of the fund), and 28 for PAPI that do not appear in VYM (15.7%).
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 VYM | Difference |
|---|---|---|---|
| XOMExxonmobil Corp. | 0.58% | 2.70% | 2.12% |
| JNJJohnson & Johnson - Common | 0.50% | 2.58% | 2.08% |
| ABBVAbbvie Inc. | 0.62% | 1.83% | 1.21% |
| CSCOCisco Systems Inc. - Ordinary Shares | 0.56% | 1.76% | 1.20% |
| CVXChevron Corp | 0.58% | 1.54% | 0.96% |
| MRKMerck & Company Inc | 0.58% | 1.47% | 0.89% |
| KOCoca Cola Co. | 0.59% | 1.39% | 0.80% |
| PGProcter & Gamble Company | 0.55% | 1.36% | 0.81% |
| HDHome Depot Inc | 0.48% | 1.32% | 0.84% |
| TXNTexas Instrument Inc | 0.53% | 0.96% | 0.43% |
81.0% of PAPI is already inside VYM.
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 VYM?
PAPI has an expense ratio of 0.29% while VYM charges 0.04%. VYM is the cheaper option, by $25 a year on a $10,000 investment.
Which performed better, PAPI or VYM?
Over the past year PAPI returned +18.52% vs +18.40% for VYM, 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 VYM?
PAPI has been the more volatile fund at 11.2% annualized versus 11.0% for VYM. Worst drawdown: PAPI -14.3% vs VYM -14.5%.
Should I hold both PAPI and VYM?
PAPI and VYM have a monthly-return correlation of 0.81, 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 VYM?
81.0% of PAPI's money is in holdings VYM also owns. 41.0% of VYM's is in holdings PAPI also owns. They hold 156 positions in common, counted across the 189 positions we hold weights for in PAPI and 602 in VYM.
Which pays a higher dividend, PAPI or VYM?
PAPI yields 7.33% while VYM yields 2.23%, so PAPI currently pays the higher dividend yield.
Is VYM better than PAPI?
VYM has a lower expense ratio. PAPI led over 1Y, VYM over 3Y and the full window. PAPI is less concentrated, with 8.1% of the fund in its ten largest positions against 25.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.