PAPI vs. VBIL

Last updated Jun 5, 2026

PAPI (Parametric Equity Premium Income ETF) and VBIL (Vanguard 0-3 Month Treasury Bill ETF) are both exchange-traded funds - PAPI is a Derivative Income fund actively managed by Morgan Stanley, while VBIL is a Ultrashort Bond fund tracking the Bloomberg US Treasury Bills 0-3 Months Index. PAPI is actively managed, while VBIL is passively managed. Over the past year, PAPI returned 13.61% vs 3.93% for VBIL. At a correlation of -0.03, they often move in opposite directions. PAPI charges 0.29%/yr vs 0.07%/yr for VBIL.

Performance

PAPI vs. VBIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Parametric Equity Premium Income ETF (PAPI) and Vanguard 0-3 Month Treasury Bill ETF (VBIL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAPI achieves a 6.49% return, which is significantly higher than VBIL's 1.51% return.

PAPI

• 1D: 0.64%
• 1M: 0.17%
• YTD: 6.49%
• 6M: 6.38%
• 1Y: 13.61%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VBIL

• 1D: 0.01%
• 1M: 0.30%
• YTD: 1.51%
• 6M: 1.81%
• 1Y: 3.93%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PAPI vs. VBIL - Yearly Performance Comparison

	2026 (YTD)	2025
PAPI Parametric Equity Premium Income ETF	6.49%	4.23%
VBIL Vanguard 0-3 Month Treasury Bill ETF	1.51%	3.71%

Correlation

The correlation between PAPI and VBIL is -0.07, 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	-0.07
Correlation (All Time) Calculated using the full available price history since Feb 12, 2025	-0.03

Return for Risk

PAPI vs. VBIL — Risk / Return Rank

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

PAPI

PAPI Risk / Return Rank: 38
PAPI Sharpe Ratio Rank: 37
PAPI Sortino Ratio Rank: 39
PAPI Omega Ratio Rank: 35
PAPI Calmar Ratio Rank: 41
PAPI Martin Ratio Rank: 35

VBIL

VBIL Risk / Return Rank: 100
VBIL Sharpe Ratio Rank: 100
VBIL Sortino Ratio Rank: 100
VBIL Omega Ratio Rank: 100
VBIL Calmar Ratio Rank: 99
VBIL Martin Ratio Rank: 100

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. VBIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Premium Income ETF (PAPI) and Vanguard 0-3 Month Treasury Bill ETF (VBIL). 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	VBIL	Difference
Sharpe ratio: Return per unit of total volatility	1.31	15.14	-13.83
Sortino ratio: Return per unit of downside risk	1.98	39.04	-37.06
Omega ratio: Gain probability vs. loss probability	1.23	21.07	-19.84
Calmar ratio: Return relative to maximum drawdown	1.99	42.54	-40.55
Martin ratio: Return relative to average drawdown	5.35	531.60	-526.25
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. VBIL - Sharpe Ratio Comparison

The current PAPI Sharpe Ratio is 1.31, which is lower than the VBIL Sharpe Ratio of 15.14. The chart below compares the historical Sharpe Ratios of PAPI and VBIL, 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	VBIL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.31	15.14	-13.83
Sharpe Ratio (All Time) Calculated using the full available price history	0.90	13.45	-12.55

Drawdowns

PAPI vs. VBIL - Drawdown Comparison

The maximum PAPI drawdown since its inception was -14.27%, which is greater than VBIL's maximum drawdown of -0.09%. Use the drawdown chart below to compare losses from any high point for PAPI and VBIL.

Drawdown Indicators

	PAPI	VBIL	Difference
Max Drawdown Largest peak-to-trough decline	-14.27%	-0.09%	-14.18%
Max Drawdown (1Y) Largest decline over 1 year	-6.86%	-0.09%	-6.77%
Current Drawdown Current decline from peak	-4.45%	0.00%	-4.45%
Average Drawdown Average peak-to-trough decline	-2.73%	-0.00%	-2.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.55%	0.01%	+2.54%

Volatility

PAPI vs. VBIL - Volatility Comparison

Parametric Equity Premium Income ETF (PAPI) has a higher volatility of 2.20% compared to Vanguard 0-3 Month Treasury Bill ETF (VBIL) at 0.06%. This indicates that PAPI's price experiences larger fluctuations and is considered to be riskier than VBIL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAPI	VBIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.20%	0.06%	+2.14%
Volatility (6M) Calculated over the trailing 6-month period	7.02%	0.16%	+6.86%
Volatility (1Y) Calculated over the trailing 1-year period	10.47%	0.26%	+10.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.76%	0.30%	+11.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.76%	0.30%	+11.46%

PAPI vs. VBIL - Expense Ratio Comparison

PAPI has a 0.29% expense ratio, which is higher than VBIL's 0.07% expense ratio.

Dividends

PAPI vs. VBIL - Dividend Comparison

PAPI's dividend yield for the trailing twelve months is around 7.57%, more than VBIL's 3.65% yield.

Position	TTM	2025	2024	2023
PAPI Parametric Equity Premium Income ETF	7.57%	7.59%	7.07%	1.45%
VBIL Vanguard 0-3 Month Treasury Bill ETF	3.65%	3.12%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PAPI and VBIL in my portfolio?

PAPI and VBIL have a correlation of -0.07, 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 VBIL?

PAPI has higher volatility (2.20%) compared to VBIL (0.06%). In terms of maximum drawdown, PAPI dropped -14.27% vs VBIL's -0.09%.

Which ETF is better, PAPI or VBIL?

On 1-year performance, PAPI leads with 13.61% vs 3.93% for VBIL. On fees, VBIL is cheaper at 0.07% per year. On volatility, VBIL has been the lower-risk option at 0.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PAPI or VBIL?

Over the 1-year period, PAPI has performed better with a 13.61% return vs 3.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAPI or VBIL?

VBIL is cheaper with a 0.07% expense ratio, compared with 0.29% for PAPI.

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

PAPI has the higher dividend yield at 7.57%, compared with 3.65% for VBIL.

What is the main difference between PAPI and VBIL?

PAPI is categorized as Derivative Income, while VBIL is Ultrashort Bond. They also come from different issuers: Morgan Stanley and Vanguard. Their fees differ too: 0.29% for PAPI and 0.07% for VBIL.

Which has better risk-adjusted returns?

VBIL currently has the higher Sharpe Ratio (15.14 vs 1.31), 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.