PAPI vs. NVDY

Last updated Jun 4, 2026

PAPI (Parametric Equity Premium Income ETF) and NVDY (YieldMax NVDA Option Income Strategy ETF) are both Derivative Income funds. Both are actively managed. Over the past year, PAPI returned 12.39% vs 46.64% for NVDY. At a correlation of -0.04, they often move in opposite directions. PAPI charges 0.29%/yr vs 0.99%/yr for NVDY.

Performance

PAPI vs. NVDY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Parametric Equity Premium Income ETF (PAPI) and YieldMax NVDA Option Income Strategy ETF (NVDY). 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 NVDY's 13.06% return.

PAPI

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

NVDY

• 1D: -2.22%
• 1M: 5.54%
• YTD: 13.06%
• 6M: 17.67%
• 1Y: 46.64%
• 3Y*: 54.54%
• 5Y*: —
• 10Y*: —

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

PAPI vs. NVDY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PAPI Parametric Equity Premium Income ETF	5.81%	6.33%	8.90%	5.36%
NVDY YieldMax NVDA Option Income Strategy ETF	13.06%	27.38%	114.23%	13.44%

Correlation

The correlation between PAPI and NVDY is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.17
Correlation (All Time) Calculated using the full available price history since Oct 20, 2023	-0.04

The correlation between PAPI and NVDY shifts across timeframes, from -0.17 (1 year) to -0.04 (all time), reflecting how their relationship changes across market environments.

Return for Risk

PAPI vs. NVDY — 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

NVDY

NVDY Risk / Return Rank: 52
NVDY Sharpe Ratio Rank: 49
NVDY Sortino Ratio Rank: 45
NVDY Omega Ratio Rank: 44
NVDY Calmar Ratio Rank: 72
NVDY Martin Ratio Rank: 52

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. NVDY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Premium Income ETF (PAPI) and YieldMax NVDA Option Income Strategy ETF (NVDY). 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	NVDY	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.72	-0.53
Sortino ratio: Return per unit of downside risk	1.82	2.29	-0.47
Omega ratio: Gain probability vs. loss probability	1.21	1.29	-0.08
Calmar ratio: Return relative to maximum drawdown	1.81	3.66	-1.84
Martin ratio: Return relative to average drawdown	4.90	9.00	-4.10
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. NVDY - Sharpe Ratio Comparison

The current PAPI Sharpe Ratio is 1.19, which is lower than the NVDY Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of PAPI and NVDY, 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	NVDY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	1.72	-0.53
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	1.64	-0.76

Drawdowns

PAPI vs. NVDY - Drawdown Comparison

The maximum PAPI drawdown since its inception was -14.27%, smaller than the maximum NVDY drawdown of -34.08%. Use the drawdown chart below to compare losses from any high point for PAPI and NVDY.

Drawdown Indicators

	PAPI	NVDY	Difference
Max Drawdown Largest peak-to-trough decline	-14.27%	-34.08%	+19.81%
Max Drawdown (1Y) Largest decline over 1 year	-6.86%	-12.81%	+5.95%
Max Drawdown (3Y) Largest decline over 3 years	—	-34.08%	—
Current Drawdown Current decline from peak	-5.06%	-6.66%	+1.60%
Average Drawdown Average peak-to-trough decline	-2.73%	-6.15%	+3.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	5.20%	-2.67%

Volatility

PAPI vs. NVDY - Volatility Comparison

The current volatility for Parametric Equity Premium Income ETF (PAPI) is 2.23%, while YieldMax NVDA Option Income Strategy ETF (NVDY) has a volatility of 9.46%. This indicates that PAPI experiences smaller price fluctuations and is considered to be less risky than NVDY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAPI	NVDY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.23%	9.46%	-7.23%
Volatility (6M) Calculated over the trailing 6-month period	7.00%	20.68%	-13.68%
Volatility (1Y) Calculated over the trailing 1-year period	10.55%	27.35%	-16.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.76%	38.24%	-26.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.76%	38.24%	-26.48%

PAPI vs. NVDY - Expense Ratio Comparison

PAPI has a 0.29% expense ratio, which is lower than NVDY's 0.99% expense ratio.

Dividends

PAPI vs. NVDY - Dividend Comparison

PAPI's dividend yield for the trailing twelve months is around 7.62%, less than NVDY's 61.36% yield.

Position	TTM	2025	2024	2023
NVDY YieldMax NVDA Option Income Strategy ETF	61.36%	83.10%	83.65%	22.32%
PAPI Parametric Equity Premium Income ETF	7.62%	7.59%	7.07%	1.45%

Frequently Asked Questions

Can I hold both PAPI and NVDY in my portfolio?

PAPI and NVDY have a correlation of -0.17, 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 NVDY?

NVDY has higher volatility (9.46%) compared to PAPI (2.23%). In terms of maximum drawdown, PAPI dropped -14.27% vs NVDY's -34.08%.

Which ETF is better, PAPI or NVDY?

On 1-year performance, NVDY leads with 46.64% 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 NVDY?

Over the 1-year period, NVDY has performed better with a 46.64% 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 NVDY?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.99% for NVDY.

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

NVDY has the higher dividend yield at 61.36%, compared with 7.62% for PAPI.

What is the main difference between PAPI and NVDY?

They also come from different issuers: Morgan Stanley and YieldMax. Their fees differ too: 0.29% for PAPI and 0.99% for NVDY.

Which has better risk-adjusted returns?

NVDY currently has the higher Sharpe Ratio (1.72 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.