DIPS vs. PAPI

Last updated Jun 4, 2026

DIPS (YieldMax Short NVDA Option Income Strategy ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. Both are actively managed. Over the past year, DIPS returned -26.57% vs 12.39% for PAPI. At a 0.06 correlation, their price movements are largely independent. DIPS charges 0.99%/yr vs 0.29%/yr for PAPI.

Performance

DIPS vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in YieldMax Short NVDA Option Income Strategy ETF (DIPS) and Parametric Equity Premium Income ETF (PAPI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DIPS achieves a -8.73% return, which is significantly lower than PAPI's 5.81% return.

DIPS

• 1D: 2.87%
• 1M: -6.32%
• YTD: -8.73%
• 6M: -11.40%
• 1Y: -26.57%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAPI

• 1D: -0.26%
• 1M: 0.28%
• YTD: 5.81%
• 6M: 5.78%
• 1Y: 12.39%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

DIPS vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
DIPS YieldMax Short NVDA Option Income Strategy ETF	-8.73%	-31.46%	-23.19%
PAPI Parametric Equity Premium Income ETF	5.81%	6.33%	1.43%

Correlation

The correlation between DIPS and PAPI is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.20
Correlation (All Time) Calculated using the full available price history since Jul 25, 2024	0.06

The correlation between DIPS and PAPI shifts across timeframes, from 0.06 (all time) to 0.20 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

DIPS vs. PAPI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DIPS

DIPS Risk / Return Rank: 2
DIPS Sharpe Ratio Rank: 2
DIPS Sortino Ratio Rank: 2
DIPS Omega Ratio Rank: 2
DIPS Calmar Ratio Rank: 2
DIPS Martin Ratio Rank: 2

PAPI

PAPI Risk / Return Rank: 33
PAPI Sharpe Ratio Rank: 32
PAPI Sortino Ratio Rank: 34
PAPI Omega Ratio Rank: 30
PAPI Calmar Ratio Rank: 37
PAPI Martin Ratio Rank: 33

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DIPS vs. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for YieldMax Short NVDA Option Income Strategy ETF (DIPS) and Parametric Equity Premium Income ETF (PAPI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	DIPS	PAPI	Difference
Sharpe ratio: Return per unit of total volatility	-0.96	1.19	-2.15
Sortino ratio: Return per unit of downside risk	-1.28	1.82	-3.10
Omega ratio: Gain probability vs. loss probability	0.85	1.21	-0.36
Calmar ratio: Return relative to maximum drawdown	-0.78	1.81	-2.60
Martin ratio: Return relative to average drawdown	-1.36	4.90	-6.27
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DIPS vs. PAPI - Sharpe Ratio Comparison

The current DIPS Sharpe Ratio is -0.96, which is lower than the PAPI Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of DIPS and PAPI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DIPS	PAPI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.96	1.19	-2.15
Sharpe Ratio (All Time) Calculated using the full available price history	-0.86	0.88	-1.74

Drawdowns

DIPS vs. PAPI - Drawdown Comparison

The maximum DIPS drawdown since its inception was -59.93%, which is greater than PAPI's maximum drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for DIPS and PAPI.

Drawdown Indicators

	DIPS	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-59.93%	-14.27%	-45.66%
Max Drawdown (1Y) Largest decline over 1 year	-33.97%	-6.86%	-27.11%
Current Drawdown Current decline from peak	-55.85%	-5.06%	-50.79%
Average Drawdown Average peak-to-trough decline	-38.22%	-2.73%	-35.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.49%	2.53%	+16.96%

Volatility

DIPS vs. PAPI - Volatility Comparison

YieldMax Short NVDA Option Income Strategy ETF (DIPS) has a higher volatility of 10.68% compared to Parametric Equity Premium Income ETF (PAPI) at 2.23%. This indicates that DIPS's price experiences larger fluctuations and is considered to be riskier than PAPI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DIPS	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.68%	2.23%	+8.45%
Volatility (6M) Calculated over the trailing 6-month period	20.77%	7.00%	+13.77%
Volatility (1Y) Calculated over the trailing 1-year period	27.88%	10.55%	+17.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	38.03%	11.76%	+26.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.03%	11.76%	+26.27%

DIPS vs. PAPI - Expense Ratio Comparison

DIPS has a 0.99% expense ratio, which is higher than PAPI's 0.29% expense ratio.

Dividends

DIPS vs. PAPI - Dividend Comparison

DIPS's dividend yield for the trailing twelve months is around 66.49%, more than PAPI's 7.62% yield.

Position	TTM	2025	2024	2023
DIPS YieldMax Short NVDA Option Income Strategy ETF	66.49%	96.20%	24.18%	0.00%
PAPI Parametric Equity Premium Income ETF	7.62%	7.59%	7.07%	1.45%

Frequently Asked Questions

Can I hold both DIPS and PAPI in my portfolio?

DIPS and PAPI have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DIPS or PAPI?

DIPS has higher volatility (10.68%) compared to PAPI (2.23%). In terms of maximum drawdown, DIPS dropped -59.93% vs PAPI's -14.27%.

Which ETF is better, DIPS or PAPI?

On 1-year performance, PAPI leads with 12.39% vs -26.57% for DIPS. On fees, PAPI is cheaper at 0.29% per year. On volatility, PAPI has been the lower-risk option at 2.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DIPS or PAPI?

Over the 1-year period, PAPI has performed better with a 12.39% return vs -26.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DIPS or PAPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.99% for DIPS.

Which ETF pays a higher dividend yield, DIPS or PAPI?

DIPS has the higher dividend yield at 66.49%, compared with 7.62% for PAPI.

What is the main difference between DIPS and PAPI?

They also come from different issuers: YieldMax and Morgan Stanley. Their fees differ too: 0.99% for DIPS and 0.29% for PAPI.

Which has better risk-adjusted returns?

PAPI currently has the higher Sharpe Ratio (1.19 vs -0.96), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.