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PAPI ETF — Holdings & Analysis

The Parametric Equity Premium Income ETF (PAPI) is an actively managed fund with $0.26 billion in assets under management and an expense ratio of 0.29%. PAPI seeks to generate income by investing in a diversified portfolio of dividend-paying stocks from the Russell 3000 and writing short-dated, out-of-the-money call options on the SPY or S&P 500. The fund employs a sector-equal weighting strategy and systematically harvests tax losses within its equity portfolio, differentiating it from passively managed index funds.

Parametric Equity Premium Income ETF (PAPI) ETF — Price, Holdings & Analysis

The Parametric Equity Premium Income ETF (PAPI) is an actively managed fund with $0.26 billion in assets under management and an expense ratio of 0.29%. PAPI seeks to generate income by investing in a diversified portfolio of dividend-paying stocks from the Russell 3000 and writing short-dated, out-of-the-money call options on the SPY or S&P 500. The fund employs a sector-equal weighting strategy and systematically harvests tax losses within its equity portfolio, differentiating it from passively managed index funds.

ETF Overview

PAPI primarily invests in an equity portfolio of durable dividend payers selected from the Russell 3000 Index using a proprietary investment process that considers 12-month yield and risk level. The fund attempts to achieve broad diversification by weighting all sectors equally and then assigning equal weights to the top-ranking stocks within each sector. In an attempt to generate incremental income, PAPI systematically writes short-dated (2-week) out-of-the-money call options in tranches, with expirations staggered every 3 to 4 days. The call options, which may include FLEX options, are written on the underlying ETF (SPY) or the S&P 500 Index. The fund earns some premium from writing calls, but this caps the funds upside potential. PAPI may incorporate tax loss harvesting within the long equity portfolio to maximize realization of losses. Investors should note that naked call writing, or selling call options without owning the underlying asset, is a high-risk options strategy.
PAPI aims to provide income and capital appreciation by investing in a portfolio of dividend-paying stocks selected from the Russell 3000 Index. The fund uses a proprietary investment process that considers 12-month yield and risk level. To achieve broad diversification, PAPI equally weights all sectors and then assigns equal weights to the top-ranking stocks within each sector. A key component of PAPI's strategy is writing short-dated (2-week) out-of-the-money call options, with expirations staggered every 3 to 4 days, on the SPY ETF or the S&P 500 Index. This strategy generates income from the option premiums but caps the fund's upside potential. The fund also incorporates tax-loss harvesting to maximize the realization of losses, potentially improving after-tax returns. As of 2026-03-15, top holdings include Morgan Stanley Instl Lqudty Govt Instl (1.65%), Corning Inc (0.88%), and International Seaways Inc (0.72%). Sector allocations are fairly balanced, with Consumer Cyclical (12.2%), Energy (11.8%), and Healthcare (11.3%) having the largest allocations.

Risk Metrics

PAPI's risk profile is influenced by its active management and options strategy. While the equal sector weighting aims to diversify, the fund's top holdings still represent a significant portion of the portfolio. The fund's option writing strategy caps upside potential in exchange for income, which may underperform in rapidly rising markets. The fund's three-year beta is currently 0.00, but this may not be indicative of future volatility. The expense ratio of 0.29% will create a drag on performance relative to lower-cost passive ETFs. Investors should also be aware of the risks associated with writing uncovered call options, which can lead to substantial losses if the underlying asset price increases significantly. Past performance does not guarantee future results.

Expense Ratio

0.29%

Top Holdings

Sector Allocation

  • Consumer Cyclical: 12.2%
  • Energy: 11.8%
  • Healthcare: 11.3%
  • Technology: 11.2%
  • Consumer Defensive: 10.3%
  • Utilities: 10.3%
  • Industrials: 9.9%
  • Financial Services: 9.6%
  • Basic Materials: 7.9%
  • Communication Services: 5.4%
  • United States: 92.6%
  • United Kingdom: 1.7%
  • Other: 1.4%
  • Ireland: 1.3%
  • Switzerland: 1.0%
  • Luxembourg: 0.6%
  • Canada: 0.5%
  • Bermuda: 0.5%
  • Netherlands: 0.4%

Dividend Yield

0.00%
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Risk Metrics

  • Beta: 0.00

Questions & Answers

What is PAPI and what does it track?

The Parametric Equity Premium Income ETF (PAPI) is an actively managed ETF that seeks to provide income and capital appreciation by investing in a portfolio of dividend-paying stocks selected from the Russell 3000 Index. The fund employs a proprietary investment process that considers 12-month yield and risk level. PAPI also systematically writes short-dated, out-of-the-money call options on the SPY ETF or the S&P 500 Index to generate additional income. As of 2026-03-15, the fund has $0.26 billion in assets under management.

What is the expense ratio for PAPI?

The expense ratio for PAPI is 0.29%. This means that for every $10,000 invested in the fund, investors will pay $29 in annual fees. While this is not considered high, it is higher than some passively managed ETFs that track broad market indexes. The expense ratio will impact the fund's overall returns, particularly over longer time horizons. It is important to consider the expense ratio when comparing PAPI to other similar ETFs.

What are the top holdings in PAPI?

As of 2026-03-15, the top holdings in PAPI are: 1) Morgan Stanley Instl Lqudty Govt Instl (MVRXX) at 1.65%, 2) Corning Inc (GLW) at 0.88%, 3) International Seaways Inc (INSW) at 0.72%, 4) Permian Resources Corp Class A (PR) at 0.67%, and 5) Noble Corp PLC Class A (NE) at 0.65%. These holdings represent a relatively small portion of the overall portfolio, indicating a fairly diversified approach within the fund's investment strategy. The fund's diversification is further supported by its equal sector weighting methodology.

Is PAPI a good long-term investment?

PAPI's suitability as a long-term investment depends on an investor's individual financial goals and risk tolerance. The fund's strategy of writing covered calls can generate income, but it also limits potential upside. The fund's expense ratio of 0.29% will impact long-term returns. Investors should carefully consider the fund's investment strategy, risk profile, and historical performance (if available) before making a decision. Past performance does not guarantee future results.

How does PAPI compare to similar ETFs?

PAPI differentiates itself through its active management, equal sector weighting, and covered call strategy. Many similar ETFs may focus on high-dividend stocks without the covered call overlay, or they may be passively managed, tracking a specific dividend-focused index. PAPI's expense ratio of 0.29% may be higher than some passively managed dividend ETFs but potentially lower than other actively managed income funds. With AUM of $0.26 billion, PAPI is smaller than some of the more established dividend ETFs, but it is still a sizable fund.

Does PAPI pay dividends?

As of 2026-03-15, the dividend yield for PAPI is 0.00%. It is important to note that the fund's dividend payments can fluctuate over time depending on market conditions and the fund's investment performance. Investors should review the fund's historical dividend payments and consider their own income needs when evaluating PAPI as an investment.