LTTI vs. PAPI

Last updated Aug 2, 2026

LTTI (FT Vest 20+ Year Treasury & Target Income ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. Both are actively managed. Over the past year, LTTI returned -2.61% vs 19.72% for PAPI. Their 0.15 correlation means their historical movements had little consistent relationship. LTTI charges 0.65%/yr vs 0.29%/yr for PAPI.

Performance

LTTI vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Vest 20+ Year Treasury & Target Income ETF (LTTI) 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, LTTI achieves a -4.10% return, which is significantly lower than PAPI's 12.17% return.

LTTI

• 1D: -0.74%
• 1M: -3.51%
• 6M: -4.04%
• YTD: -4.10%
• 1Y: -2.61%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: -1.21%

PAPI

• 1D: -0.23%
• 1M: 2.42%
• 6M: 5.56%
• YTD: 12.17%
• 1Y: 19.72%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 11.62%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
LTTI FT Vest 20+ Year Treasury & Target Income ETF	$120.18K	$116.89K	$129.92K
PAPI Parametric Equity Premium Income ETF	$2.06M	$2.02M	$1.93M

LTTI vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025
LTTI FT Vest 20+ Year Treasury & Target Income ETF	-4.10%	2.43%
PAPI Parametric Equity Premium Income ETF	12.17%	5.07%

Correlation

The correlation between LTTI and PAPI is 0.12, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.12
Correlation (All Time) Calculated using the full available price history since Feb 13, 2025	0.15

Return for Risk

LTTI vs. PAPI — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

LTTI

LTTI Risk / Return Rank: 8
LTTI Sharpe Ratio Rank: 8
LTTI Sortino Ratio Rank: 8
LTTI Omega Ratio Rank: 8
LTTI Calmar Ratio Rank: 9
LTTI Martin Ratio Rank: 8

PAPI

PAPI Risk / Return Rank: 73
PAPI Sharpe Ratio Rank: 78
PAPI Sortino Ratio Rank: 81
PAPI Omega Ratio Rank: 74
PAPI Calmar Ratio Rank: 77
PAPI Martin Ratio Rank: 57

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

LTTI vs. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Vest 20+ Year Treasury & Target Income ETF (LTTI) 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.

	LTTI	PAPI	Difference
Sharpe ratio: Return per unit of total volatility	-0.16	1.77	-1.93
Sortino ratio: Return per unit of downside risk	-0.16	2.65	-2.81
Omega ratio: Gain probability vs. loss probability	0.98	1.31	-0.33
Calmar ratio: Return relative to maximum drawdown	-0.18	2.69	-2.86
Martin ratio: Return relative to average drawdown	-0.39	6.78	-7.17

LTTI vs. PAPI - Sharpe Ratio Comparison

The current LTTI Sharpe Ratio is -0.16, which is lower than the PAPI Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of LTTI 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

LTTI vs. PAPI - Drawdown Comparison

The maximum LTTI drawdown since its inception was -9.02%, smaller than the maximum PAPI drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for LTTI and PAPI.

Drawdown Indicators

	LTTI	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-9.02%	-14.27%	+5.25%
Max Drawdown (1Y) Largest decline over 1 year	-7.63%	-6.86%	-0.77%
Current Drawdown Current decline from peak	-7.63%	-1.36%	-6.27%
Average Drawdown Average peak-to-trough decline	-3.78%	-2.72%	-1.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.44%	2.71%	+0.73%

Volatility

LTTI vs. PAPI - Volatility Comparison

The current volatility for FT Vest 20+ Year Treasury & Target Income ETF (LTTI) is 2.24%, while Parametric Equity Premium Income ETF (PAPI) has a volatility of 3.49%. This indicates that LTTI 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

	LTTI	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.24%	3.49%	-1.25%
Volatility (6M) Calculated over the trailing 6-month period	6.27%	7.24%	-0.97%
Volatility (1Y) Calculated over the trailing 1-year period	8.45%	10.44%	-1.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.05%	11.73%	-1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.05%	11.73%	-1.68%

LTTI vs. PAPI - Expense Ratio Comparison

LTTI has a 0.65% expense ratio, which is higher than PAPI's 0.29% expense ratio.

Dividends

LTTI vs. PAPI - Dividend Comparison

LTTI's dividend yield for the trailing twelve months is around 9.55%, more than PAPI's 7.42% yield.

Position	TTM	2025	2024	2023
LTTI FT Vest 20+ Year Treasury & Target Income ETF	8.74%	7.08%	0.00%	0.00%
PAPI Parametric Equity Premium Income ETF	7.42%	7.59%	7.07%	1.45%

Frequently Asked Questions

Can I hold both LTTI and PAPI in my portfolio?

LTTI and PAPI have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LTTI or PAPI?

PAPI has higher volatility (3.49%) compared to LTTI (2.24%). In terms of maximum drawdown, LTTI dropped -9.02% vs PAPI's -14.27%.

Which ETF is better, LTTI or PAPI?

On 1-year performance, PAPI leads with 19.72% vs -2.61% for LTTI. On fees, PAPI is cheaper at 0.29% per year. On volatility, LTTI has been the lower-risk option at 2.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LTTI or PAPI?

Over the 1-year period, PAPI has performed better with a 19.72% return vs -2.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LTTI or PAPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.65% for LTTI.

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

LTTI has the higher dividend yield at 8.74%, compared with 7.42% for PAPI.

What is the main difference between LTTI and PAPI?

They also come from different issuers: FT Vest and Morgan Stanley. Their fees differ too: 0.65% for LTTI and 0.29% for PAPI.

Which has better risk-adjusted returns?

PAPI currently has the higher Sharpe Ratio (1.77 vs -0.16), 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.