FTHI vs. PAPI

Last updated Jun 4, 2026

FTHI (First Trust BuyWrite Income ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. Both are actively managed. Over the past year, FTHI returned 16.43% vs 12.39% for PAPI. At a 0.43 correlation, their price movements are largely independent. FTHI charges 0.85%/yr vs 0.29%/yr for PAPI.

Performance

FTHI vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust BuyWrite Income ETF (FTHI) 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, FTHI achieves a 4.79% return, which is significantly lower than PAPI's 5.81% return.

FTHI

• 1D: -0.17%
• 1M: 1.75%
• YTD: 4.79%
• 6M: 5.22%
• 1Y: 16.43%
• 3Y*: 14.50%
• 5Y*: 10.17%
• 10Y*: 8.54%

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)

FTHI vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FTHI First Trust BuyWrite Income ETF	4.79%	11.03%	19.02%	7.66%
PAPI Parametric Equity Premium Income ETF	5.81%	6.33%	8.90%	5.36%

Correlation

The correlation between FTHI and PAPI is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (All Time) Calculated using the full available price history since Oct 20, 2023	0.43

The correlation between FTHI and PAPI shifts across timeframes, from 0.29 (1 year) to 0.43 (all time), reflecting how their relationship changes across market environments.

FTHI vs. PAPI - Sectors Allocation Comparison

Sectors	FTHI	PAPI
Financial Services	15.4%	9.9%
Industrials	13.9%	9.9%
Technology	11.4%	12.5%
Utilities	10.0%	10.1%
Healthcare	8.5%	10.7%
Consumer Cyclical	7.5%	12.1%
Consumer Defensive	7.5%	10.1%
Energy	7.0%	11.6%
Real Estate	7.0%	-
Basic Materials	5.0%	7.8%
Communication Services	5.0%	5.4%

Return for Risk

FTHI vs. PAPI — Risk / Return Rank

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

FTHI

FTHI Risk / Return Rank: 59
FTHI Sharpe Ratio Rank: 54
FTHI Sortino Ratio Rank: 56
FTHI Omega Ratio Rank: 57
FTHI Calmar Ratio Rank: 60
FTHI Martin Ratio Rank: 70

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.

FTHI vs. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust BuyWrite Income ETF (FTHI) 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.

	FTHI	PAPI	Difference
Sharpe ratio: Return per unit of total volatility	1.87	1.19	+0.68
Sortino ratio: Return per unit of downside risk	2.71	1.82	+0.89
Omega ratio: Gain probability vs. loss probability	1.36	1.21	+0.15
Calmar ratio: Return relative to maximum drawdown	3.02	1.81	+1.20
Martin ratio: Return relative to average drawdown	13.19	4.90	+8.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FTHI vs. PAPI - Sharpe Ratio Comparison

The current FTHI Sharpe Ratio is 1.87, which is higher than the PAPI Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of FTHI 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

	FTHI	PAPI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.87	1.19	+0.68
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.76	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	0.88	-0.35

Drawdowns

FTHI vs. PAPI - Drawdown Comparison

The maximum FTHI drawdown since its inception was -32.65%, which is greater than PAPI's maximum drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for FTHI and PAPI.

Drawdown Indicators

	FTHI	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-32.65%	-14.27%	-18.38%
Max Drawdown (1Y) Largest decline over 1 year	-5.47%	-6.86%	+1.39%
Max Drawdown (3Y) Largest decline over 3 years	-15.92%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-16.70%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-32.65%	—	—
Current Drawdown Current decline from peak	-0.17%	-5.06%	+4.89%
Average Drawdown Average peak-to-trough decline	-3.68%	-2.73%	-0.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.25%	2.53%	-1.28%

Volatility

FTHI vs. PAPI - Volatility Comparison

The current volatility for First Trust BuyWrite Income ETF (FTHI) is 1.67%, while Parametric Equity Premium Income ETF (PAPI) has a volatility of 2.23%. This indicates that FTHI experiences smaller price fluctuations and is considered to be less risky than PAPI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTHI	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.67%	2.23%	-0.56%
Volatility (6M) Calculated over the trailing 6-month period	7.05%	7.00%	+0.05%
Volatility (1Y) Calculated over the trailing 1-year period	8.81%	10.55%	-1.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.44%	11.76%	+1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.33%	11.76%	+2.57%

FTHI vs. PAPI - Expense Ratio Comparison

FTHI has a 0.85% expense ratio, which is higher than PAPI's 0.29% expense ratio.

Dividends

FTHI vs. PAPI - Dividend Comparison

FTHI's dividend yield for the trailing twelve months is around 8.73%, more than PAPI's 7.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTHI First Trust BuyWrite Income ETF	8.73%	8.70%	8.61%	8.50%	9.06%	4.37%	4.76%	4.21%	4.76%	4.00%	4.41%	4.98%
PAPI Parametric Equity Premium Income ETF	7.62%	7.59%	7.07%	1.45%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FTHI and PAPI in my portfolio?

FTHI and PAPI have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTHI or PAPI?

PAPI has higher volatility (2.23%) compared to FTHI (1.67%). In terms of maximum drawdown, FTHI dropped -32.65% vs PAPI's -14.27%.

Which ETF is better, FTHI or PAPI?

On 1-year performance, FTHI leads with 16.43% vs 12.39% for PAPI. On fees, PAPI is cheaper at 0.29% per year. On volatility, FTHI has been the lower-risk option at 1.67%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTHI or PAPI?

Over the 1-year period, FTHI has performed better with a 16.43% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTHI or PAPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.85% for FTHI.

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

FTHI has the higher dividend yield at 8.73%, compared with 7.62% for PAPI.

What is the main difference between FTHI and PAPI?

They also come from different issuers: First Trust and Morgan Stanley. Their fees differ too: 0.85% for FTHI and 0.29% for PAPI.

Which has better risk-adjusted returns?

FTHI currently has the higher Sharpe Ratio (1.87 vs 1.19), 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.