PAPI vs. TFLO
PAPI (Parametric Equity Premium Income ETF) and TFLO (iShares Treasury Floating Rate Bond ETF) are both exchange-traded funds - PAPI is a Derivative Income fund actively managed by Morgan Stanley, while TFLO is a Government Bonds fund tracking the Bloomberg U.S. Treasury Floating Rate Index. PAPI is actively managed, while TFLO is passively managed. Over the past year, PAPI returned 12.01% vs 3.99% for TFLO. At a correlation of -0.09, they often move in opposite directions. PAPI charges 0.29%/yr vs 0.15%/yr for TFLO.
Performance
PAPI vs. TFLO - Performance Comparison
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Returns By Period
In the year-to-date period, PAPI achieves a 6.57% return, which is significantly higher than TFLO's 1.81% return.
PAPI
- 1D
- 0.45%
- 1M
- 0.17%
- YTD
- 6.57%
- 6M
- 5.93%
- 1Y
- 12.01%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
TFLO
- 1D
- 0.02%
- 1M
- 0.31%
- YTD
- 1.81%
- 6M
- 1.91%
- 1Y
- 3.99%
- 3Y*
- 4.72%
- 5Y*
- 3.68%
- 10Y*
- 2.38%
PAPI vs. TFLO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | |
|---|---|---|---|---|
PAPI Parametric Equity Premium Income ETF | 6.57% | 6.33% | 8.90% | 4.53% |
TFLO iShares Treasury Floating Rate Bond ETF | 1.81% | 4.22% | 5.34% | 1.02% |
Correlation
The correlation between PAPI and TFLO is -0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.05 |
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023 | -0.09 |
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Return for Risk
PAPI vs. TFLO — Risk / Return Rank
PAPI
TFLO
PAPI vs. TFLO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Premium Income ETF (PAPI) and iShares Treasury Floating Rate Bond ETF (TFLO). 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.
| PAPI | TFLO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -12.97 | ||
| Sortino ratioReturn per unit of downside risk | -49.38 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 14.01 | -12.81 |
| Calmar ratioReturn relative to maximum drawdown | 1.76 | 202.27 | -200.51 |
| Martin ratioReturn relative to average drawdown | 4.42 | 827.47 | -823.04 |
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Drawdowns
PAPI vs. TFLO - Drawdown Comparison
The maximum PAPI drawdown since its inception was -14.27%, which is greater than TFLO's maximum drawdown of -5.01%. Use the drawdown chart below to compare losses from any high point for PAPI and TFLO.
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Drawdown Indicators
| PAPI | TFLO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -14.27% | -5.01% | -9.26% |
Max Drawdown (1Y)Largest decline over 1 year | -6.86% | -0.02% | -6.84% |
Max Drawdown (3Y)Largest decline over 3 years | — | -0.04% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -0.13% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -0.16% | — |
Current DrawdownCurrent decline from peak | -4.37% | 0.00% | -4.37% |
Average DrawdownAverage peak-to-trough decline | -2.77% | -0.10% | -2.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.72% | 0.00% | +2.72% |
Volatility
PAPI vs. TFLO - Volatility Comparison
Parametric Equity Premium Income ETF (PAPI) has a higher volatility of 2.68% compared to iShares Treasury Floating Rate Bond ETF (TFLO) at 0.08%. This indicates that PAPI's price experiences larger fluctuations and is considered to be riskier than TFLO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| PAPI | TFLO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.68% | 0.08% | +2.60% |
Volatility (6M)Calculated over the trailing 6-month period | 7.05% | 0.20% | +6.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 10.55% | 0.29% | +10.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 11.73% | 0.35% | +11.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 11.73% | 0.46% | +11.27% |
PAPI vs. TFLO - Expense Ratio Comparison
PAPI has a 0.29% expense ratio, which is higher than TFLO's 0.15% expense ratio.
Dividends
PAPI vs. TFLO - Dividend Comparison
PAPI's dividend yield for the trailing twelve months is around 7.56%, more than TFLO's 3.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PAPI Parametric Equity Premium Income ETF | 7.56% | 7.59% | 7.07% | 1.45% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
TFLO iShares Treasury Floating Rate Bond ETF | 3.89% | 4.16% | 5.21% | 4.88% | 1.68% | 0.00% | 0.36% | 2.08% | 1.65% | 0.86% | 0.31% | 0.15% |
Frequently Asked Questions
PAPI and TFLO have a correlation of -0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PAPI has higher volatility (2.68%) compared to TFLO (0.08%). In terms of maximum drawdown, PAPI dropped -14.27% vs TFLO's -5.01%.
On 1-year performance, PAPI leads with 12.01% vs 3.99% for TFLO. On fees, TFLO is cheaper at 0.15% per year. On volatility, TFLO has been the lower-risk option at 0.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, PAPI has performed better with a 12.01% return vs 3.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TFLO is cheaper with a 0.15% expense ratio, compared with 0.29% for PAPI.
PAPI has the higher dividend yield at 7.56%, compared with 3.89% for TFLO.
PAPI is categorized as Derivative Income, while TFLO is Government Bonds. They also come from different issuers: Morgan Stanley and iShares. Their fees differ too: 0.29% for PAPI and 0.15% for TFLO.
TFLO currently has the higher Sharpe Ratio (14.11 vs 1.15), 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.
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