PAPI vs. IQQQ

Last updated Jun 4, 2026

PAPI (Parametric Equity Premium Income ETF) and IQQQ (ProShares Nasdaq-100 High Income ETF) are both exchange-traded funds - PAPI is a Derivative Income fund actively managed by Morgan Stanley, while IQQQ is a Nasdaq-100 fund tracking the Nasdaq-100 Daily Covered Call Index. PAPI is actively managed, while IQQQ is passively managed. Over the past year, PAPI returned 12.39% vs 38.70% for IQQQ. At a 0.20 correlation, their price movements are largely independent. PAPI charges 0.29%/yr vs 0.55%/yr for IQQQ.

Performance

PAPI vs. IQQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Parametric Equity Premium Income ETF (PAPI) and ProShares Nasdaq-100 High Income ETF (IQQQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAPI achieves a 5.81% return, which is significantly lower than IQQQ's 18.72% return.

PAPI

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

IQQQ

• 1D: -0.30%
• 1M: 9.88%
• YTD: 18.72%
• 6M: 17.39%
• 1Y: 38.70%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PAPI vs. IQQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PAPI Parametric Equity Premium Income ETF	5.81%	6.33%	4.16%
IQQQ ProShares Nasdaq-100 High Income ETF	18.72%	17.11%	13.39%

Correlation

The correlation between PAPI and IQQQ is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.12
Correlation (All Time) Calculated using the full available price history since Mar 21, 2024	0.20

PAPI vs. IQQQ - Sectors Allocation Comparison

Sectors	PAPI	IQQQ
Technology	12.5%	53.8%
Consumer Cyclical	12.1%	12.3%
Energy	11.6%	0.6%
Healthcare	10.7%	4.2%
Utilities	10.1%	1.4%
Consumer Defensive	10.1%	7.7%
Financial Services	9.9%	0.2%
Industrials	9.9%	2.8%
Basic Materials	7.8%	1.1%
Communication Services	5.4%	15.8%
Real Estate	-	0.1%

Return for Risk

PAPI vs. IQQQ — Risk / Return Rank

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

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

IQQQ

IQQQ Risk / Return Rank: 70
IQQQ Sharpe Ratio Rank: 76
IQQQ Sortino Ratio Rank: 70
IQQQ Omega Ratio Rank: 69
IQQQ Calmar Ratio Rank: 69
IQQQ Martin Ratio Rank: 66

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.

PAPI vs. IQQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Premium Income ETF (PAPI) and ProShares Nasdaq-100 High Income ETF (IQQQ). 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.

	PAPI	IQQQ	Difference
Sharpe ratio: Return per unit of total volatility	1.19	2.53	-1.34
Sortino ratio: Return per unit of downside risk	1.82	3.27	-1.45
Omega ratio: Gain probability vs. loss probability	1.21	1.43	-0.22
Calmar ratio: Return relative to maximum drawdown	1.81	3.49	-1.68
Martin ratio: Return relative to average drawdown	4.90	12.41	-7.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAPI vs. IQQQ - Sharpe Ratio Comparison

The current PAPI Sharpe Ratio is 1.19, which is lower than the IQQQ Sharpe Ratio of 2.53. The chart below compares the historical Sharpe Ratios of PAPI and IQQQ, 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

	PAPI	IQQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	2.53	-1.34
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	1.25	-0.37

Drawdowns

PAPI vs. IQQQ - Drawdown Comparison

The maximum PAPI drawdown since its inception was -14.27%, smaller than the maximum IQQQ drawdown of -20.41%. Use the drawdown chart below to compare losses from any high point for PAPI and IQQQ.

Drawdown Indicators

	PAPI	IQQQ	Difference
Max Drawdown Largest peak-to-trough decline	-14.27%	-20.41%	+6.14%
Max Drawdown (1Y) Largest decline over 1 year	-6.86%	-11.13%	+4.27%
Current Drawdown Current decline from peak	-5.06%	-0.30%	-4.76%
Average Drawdown Average peak-to-trough decline	-2.73%	-3.64%	+0.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	3.13%	-0.60%

Volatility

PAPI vs. IQQQ - Volatility Comparison

The current volatility for Parametric Equity Premium Income ETF (PAPI) is 2.23%, while ProShares Nasdaq-100 High Income ETF (IQQQ) has a volatility of 3.99%. This indicates that PAPI experiences smaller price fluctuations and is considered to be less risky than IQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAPI	IQQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.23%	3.99%	-1.76%
Volatility (6M) Calculated over the trailing 6-month period	7.00%	11.54%	-4.54%
Volatility (1Y) Calculated over the trailing 1-year period	10.55%	15.40%	-4.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.76%	18.57%	-6.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.76%	18.57%	-6.81%

PAPI vs. IQQQ - Expense Ratio Comparison

PAPI has a 0.29% expense ratio, which is lower than IQQQ's 0.55% expense ratio.

Dividends

PAPI vs. IQQQ - Dividend Comparison

PAPI's dividend yield for the trailing twelve months is around 7.62%, more than IQQQ's 4.42% yield.

Position	TTM	2025	2024	2023
IQQQ ProShares Nasdaq-100 High Income ETF	4.42%	10.34%	7.27%	0.00%
PAPI Parametric Equity Premium Income ETF	7.62%	7.59%	7.07%	1.45%

Frequently Asked Questions

Can I hold both PAPI and IQQQ in my portfolio?

PAPI and IQQQ 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, PAPI or IQQQ?

IQQQ has higher volatility (3.99%) compared to PAPI (2.23%). In terms of maximum drawdown, PAPI dropped -14.27% vs IQQQ's -20.41%.

Which ETF is better, PAPI or IQQQ?

On 1-year performance, IQQQ leads with 38.70% vs 12.39% for PAPI. 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, PAPI or IQQQ?

Over the 1-year period, IQQQ has performed better with a 38.70% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAPI or IQQQ?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.55% for IQQQ.

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

PAPI has the higher dividend yield at 7.62%, compared with 4.42% for IQQQ.

What is the main difference between PAPI and IQQQ?

PAPI is categorized as Derivative Income, while IQQQ is Nasdaq-100. They also come from different issuers: Morgan Stanley and ProShares. Their fees differ too: 0.29% for PAPI and 0.55% for IQQQ.

Which has better risk-adjusted returns?

IQQQ currently has the higher Sharpe Ratio (2.53 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.