PAPI vs VYM
Parametric Equity Premium Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PAPI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.04% | |
| AUM | $455M | $81.6B | |
| Dividend Yield | 7.37% | 2.24% | |
| Holdings | 193 | 616 | |
| YTD Return | +13.46% | +14.95% | |
| 1Y Return | +15.05% | +21.14% | |
| 3Y Return (annualized) | - | +18.69% | |
| 5Y Return (annualized) | - | +12.00% | |
| Volatility (annualized) | 10.2% | 14.6% | |
| Max Drawdown | -14.3% | -58.8% | |
| Fund Family | Parametric | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 16, 2023 | Nov 10, 2006 |
PAPI vs VYM Performance
Parametric Equity Premium Income ETF (PAPI) is a ETF from Parametric and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year PAPI returned +15.05% while VYM returned +21.14%. Year to date, PAPI is up 13.46% versus a gain of 14.95% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.78. 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 7.37% against 2.24% for VYM.
Holdings Overlap
PAPI and VYM share 155 holdings out of 637 unique holdings combined, representing a 25.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $25 per year of difference.
Which performed better, PAPI or VYM?
Over the past year PAPI returned +15.05% vs +21.14% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), PAPI annualized +12.34% vs +7.01% for VYM. Past performance does not guarantee future results.
Which is riskier, PAPI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 10.2% for PAPI. Worst drawdown: PAPI -14.3% vs VYM -58.8%.
Should I hold both PAPI and VYM?
PAPI and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between PAPI and VYM?
PAPI and VYM share 155 common holdings with a 25.7% weight overlap. Combined, they hold 637 unique securities.
Which pays a higher dividend, PAPI or VYM?
PAPI yields 7.37% while VYM yields 2.24%, so PAPI currently pays the higher dividend yield.
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