PAPI ETF — Holdings & Analysis

For informational purposes only. Not financial advice.

Quick Answer

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%

What does PAPI hold?

Holding	Weight
Morgan Stanley Instl Lqudty Govt Instl (MVRXX)	1.65%
Corning Inc (GLW)	0.88%
International Seaways Inc (INSW)	0.72%
Permian Resources Corp Class A (PR)	0.67%
Noble Corp PLC Class A (NE)	0.65%
Millicom International Cellular SA (TIGO)	0.65%
PepsiCo Inc (PEP)	0.64%
Verizon Communications Inc (VZ)	0.64%
Patterson-UTI Energy Inc (PTEN)	0.63%
Analog Devices Inc (ADI)	0.63%

How Is the Fund Allocated?

Sector	Weight
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%

Country	Weight
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%

iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
ARK Innovation ETF (ARKK) — 0.75% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR S&P 500 ETF (SPY) — 0.09% expense ratio

Parametric Hedged Equity ETF (PHEQ) (Equity) — 0.29% expense ratio

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.

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.

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%.

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.

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.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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