IVVW vs. PAPI

Last updated Jul 17, 2026

IVVW (iShares S&P 500 BuyWrite ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. IVVW is passively managed, while PAPI is actively managed. Over the past year, IVVW returned 18.13% vs 17.32% for PAPI. At a 0.35 correlation, their price movements are largely independent. IVVW charges 0.25%/yr vs 0.29%/yr for PAPI.

Performance

IVVW vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares S&P 500 BuyWrite ETF (IVVW) 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, IVVW achieves a 6.76% return, which is significantly lower than PAPI's 11.73% return.

IVVW

• 1D: -0.42%
• 1M: 1.37%
• 6M: 6.17%
• YTD: 6.76%
• 1Y: 18.13%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAPI

• 1D: 1.99%
• 1M: 4.10%
• 6M: 6.35%
• YTD: 11.73%
• 1Y: 17.32%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

IVVW vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
IVVW iShares S&P 500 BuyWrite ETF	6.76%	11.71%	12.76%
PAPI Parametric Equity Premium Income ETF	11.73%	6.33%	5.49%

Correlation

The correlation between IVVW 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 Mar 15, 2024	0.35

The correlation between IVVW and PAPI shifts across timeframes, from 0.20 (1 year) to 0.35 (all time), reflecting how their relationship changes across market environments.

Return for Risk

IVVW vs. PAPI — Risk / Return Rank

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

IVVW

IVVW Risk / Return Rank: 86
IVVW Sharpe Ratio Rank: 86
IVVW Sortino Ratio Rank: 85
IVVW Omega Ratio Rank: 91
IVVW Calmar Ratio Rank: 77
IVVW Martin Ratio Rank: 91

PAPI

PAPI Risk / Return Rank: 60
PAPI Sharpe Ratio Rank: 63
PAPI Sortino Ratio Rank: 68
PAPI Omega Ratio Rank: 58
PAPI Calmar Ratio Rank: 63
PAPI Martin Ratio Rank: 47

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.

IVVW vs. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares S&P 500 BuyWrite ETF (IVVW) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IVVW	PAPI	Difference
Sharpe ratio: Return per unit of total volatility	2.22	1.66	+0.56
Sortino ratio: Return per unit of downside risk	3.06	2.48	+0.57
Omega ratio: Gain probability vs. loss probability	1.47	1.29	+0.19
Calmar ratio: Return relative to maximum drawdown	3.13	2.54	+0.60
Martin ratio: Return relative to average drawdown	16.61	6.27	+10.34

IVVW vs. PAPI - Sharpe Ratio Comparison

The current IVVW Sharpe Ratio is 2.22, which is higher than the PAPI Sharpe Ratio of 1.66. The chart below compares the historical Sharpe Ratios of IVVW 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.

Drawdowns

IVVW vs. PAPI - Drawdown Comparison

The maximum IVVW drawdown since its inception was -16.79%, which is greater than PAPI's maximum drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for IVVW and PAPI.

Drawdown Indicators

	IVVW	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-16.79%	-14.27%	-2.52%
Max Drawdown (1Y) Largest decline over 1 year	-5.81%	-6.86%	+1.05%
Current Drawdown Current decline from peak	-0.42%	0.00%	-0.42%
Average Drawdown Average peak-to-trough decline	-1.69%	-2.76%	+1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.09%	2.77%	-1.68%

Volatility

IVVW vs. PAPI - Volatility Comparison

The current volatility for iShares S&P 500 BuyWrite ETF (IVVW) is 2.51%, while Parametric Equity Premium Income ETF (PAPI) has a volatility of 3.53%. This indicates that IVVW 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

	IVVW	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.51%	3.53%	-1.02%
Volatility (6M) Calculated over the trailing 6-month period	7.10%	7.27%	-0.17%
Volatility (1Y) Calculated over the trailing 1-year period	8.19%	10.48%	-2.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.57%	11.75%	+0.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.57%	11.75%	+0.82%

IVVW vs. PAPI - Expense Ratio Comparison

IVVW has a 0.25% expense ratio, which is lower than PAPI's 0.29% expense ratio.

Dividends

IVVW vs. PAPI - Dividend Comparison

IVVW's dividend yield for the trailing twelve months is around 19.07%, more than PAPI's 7.33% yield.

Position	TTM	2025	2024	2023
IVVW iShares S&P 500 BuyWrite ETF	19.07%	18.55%	13.72%	0.00%
PAPI Parametric Equity Premium Income ETF	7.33%	7.59%	7.07%	1.45%

Frequently Asked Questions

Can I hold both IVVW and PAPI in my portfolio?

IVVW 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, IVVW or PAPI?

PAPI has higher volatility (3.53%) compared to IVVW (2.51%). In terms of maximum drawdown, IVVW dropped -16.79% vs PAPI's -14.27%.

Which ETF is better, IVVW or PAPI?

On 1-year performance, IVVW leads with 18.13% vs 17.32% for PAPI. On fees, IVVW is cheaper at 0.25% per year. On volatility, IVVW has been the lower-risk option at 2.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IVVW or PAPI?

Over the 1-year period, IVVW has performed better with a 18.13% return vs 17.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IVVW or PAPI?

IVVW is cheaper with a 0.25% expense ratio, compared with 0.29% for PAPI.

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

IVVW has the higher dividend yield at 19.07%, compared with 7.33% for PAPI.

What is the main difference between IVVW and PAPI?

They also come from different issuers: iShares and Morgan Stanley. Their fees differ too: 0.25% for IVVW and 0.29% for PAPI.

Which has better risk-adjusted returns?

IVVW currently has the higher Sharpe Ratio (2.22 vs 1.66), 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.