KHPI vs. PAPI

Last updated Jun 25, 2026

KHPI (Kensington Hedged Premium Income ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. Both are actively managed. Over the past year, KHPI returned 11.96% vs 12.77% for PAPI. At a 0.33 correlation, their price movements are largely independent. KHPI charges 0.96%/yr vs 0.29%/yr for PAPI.

Performance

KHPI vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Kensington Hedged Premium Income ETF (KHPI) 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, KHPI achieves a 4.44% return, which is significantly lower than PAPI's 7.33% return.

KHPI

• 1D: -0.08%
• 1M: -0.25%
• YTD: 4.44%
• 6M: 3.89%
• 1Y: 11.96%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAPI

• 1D: 0.71%
• 1M: 0.89%
• YTD: 7.33%
• 6M: 6.44%
• 1Y: 12.77%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KHPI vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
KHPI Kensington Hedged Premium Income ETF	4.44%	11.14%	3.90%
PAPI Parametric Equity Premium Income ETF	7.33%	6.33%	-0.61%

Correlation

The correlation between KHPI and PAPI is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (All Time) Calculated using the full available price history since Sep 5, 2024	0.33

Return for Risk

KHPI vs. PAPI — Risk / Return Rank

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

KHPI

KHPI Risk / Return Rank: 50
KHPI Sharpe Ratio Rank: 52
KHPI Sortino Ratio Rank: 53
KHPI Omega Ratio Rank: 52
KHPI Calmar Ratio Rank: 41
KHPI Martin Ratio Rank: 54

PAPI

PAPI Risk / Return Rank: 37
PAPI Sharpe Ratio Rank: 37
PAPI Sortino Ratio Rank: 39
PAPI Omega Ratio Rank: 34
PAPI Calmar Ratio Rank: 41
PAPI Martin Ratio Rank: 34

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.

KHPI vs. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Kensington Hedged Premium Income ETF (KHPI) 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.

	KHPI	PAPI	Difference
Sharpe ratio: Return per unit of total volatility	1.58	1.22	+0.37
Sortino ratio: Return per unit of downside risk	2.27	1.84	+0.43
Omega ratio: Gain probability vs. loss probability	1.29	1.21	+0.08
Calmar ratio: Return relative to maximum drawdown	1.83	1.87	-0.04
Martin ratio: Return relative to average drawdown	8.41	4.69	+3.72

KHPI vs. PAPI - Sharpe Ratio Comparison

The current KHPI Sharpe Ratio is 1.58, which is higher than the PAPI Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of KHPI 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

KHPI vs. PAPI - Drawdown Comparison

The maximum KHPI drawdown since its inception was -10.58%, smaller than the maximum PAPI drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for KHPI and PAPI.

Drawdown Indicators

	KHPI	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-10.58%	-14.27%	+3.69%
Max Drawdown (1Y) Largest decline over 1 year	-6.55%	-6.86%	+0.31%
Current Drawdown Current decline from peak	-1.45%	-3.69%	+2.24%
Average Drawdown Average peak-to-trough decline	-1.23%	-2.77%	+1.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.42%	2.73%	-1.31%

Volatility

KHPI vs. PAPI - Volatility Comparison

Kensington Hedged Premium Income ETF (KHPI) has a higher volatility of 2.79% compared to Parametric Equity Premium Income ETF (PAPI) at 2.58%. This indicates that KHPI'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

	KHPI	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.79%	2.58%	+0.21%
Volatility (6M) Calculated over the trailing 6-month period	5.91%	7.06%	-1.15%
Volatility (1Y) Calculated over the trailing 1-year period	7.60%	10.55%	-2.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.65%	11.73%	-2.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.65%	11.73%	-2.08%

KHPI vs. PAPI - Expense Ratio Comparison

KHPI has a 0.96% expense ratio, which is higher than PAPI's 0.29% expense ratio.

Dividends

KHPI vs. PAPI - Dividend Comparison

KHPI's dividend yield for the trailing twelve months is around 8.95%, more than PAPI's 7.51% yield.

Position	TTM	2025	2024	2023
KHPI Kensington Hedged Premium Income ETF	8.95%	8.90%	3.01%	0.00%
PAPI Parametric Equity Premium Income ETF	7.51%	7.59%	7.07%	1.45%

Frequently Asked Questions

Can I hold both KHPI and PAPI in my portfolio?

KHPI and PAPI have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KHPI or PAPI?

KHPI has higher volatility (2.79%) compared to PAPI (2.58%). In terms of maximum drawdown, KHPI dropped -10.58% vs PAPI's -14.27%.

Which ETF is better, KHPI or PAPI?

On 1-year performance, PAPI leads with 12.77% vs 11.96% for KHPI. On fees, PAPI is cheaper at 0.29% per year. On volatility, PAPI has been the lower-risk option at 2.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KHPI or PAPI?

Over the 1-year period, PAPI has performed better with a 12.77% return vs 11.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KHPI or PAPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.96% for KHPI.

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

KHPI has the higher dividend yield at 8.95%, compared with 7.51% for PAPI.

What is the main difference between KHPI and PAPI?

They also come from different issuers: Kensington Asset Management and Morgan Stanley. Their fees differ too: 0.96% for KHPI and 0.29% for PAPI.

Which has better risk-adjusted returns?

KHPI currently has the higher Sharpe Ratio (1.58 vs 1.22), 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.