PEPS vs. FTQI

Last updated Jul 17, 2026

PEPS (Parametric Equity Plus ETF) and FTQI (First Trust Nasdaq BuyWrite Income ETF) are both exchange-traded funds - PEPS is a Derivative Income fund actively managed by Parametric, while FTQI is a Nasdaq-100 fund tracking the NASDAQ-100 Index. PEPS is actively managed, while FTQI is passively managed. Over the past year, PEPS returned 24.84% vs 26.34% for FTQI. Their correlation of 0.92 suggests significant overlap in exposure. PEPS charges 0.10%/yr vs 0.75%/yr for FTQI.

Performance

PEPS vs. FTQI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Parametric Equity Plus ETF (PEPS) and First Trust Nasdaq BuyWrite Income ETF (FTQI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PEPS achieves a 10.53% return, which is significantly lower than FTQI's 12.76% return.

PEPS

• 1D: -0.66%
• 1M: 0.75%
• 6M: 8.66%
• YTD: 10.53%
• 1Y: 24.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FTQI

• 1D: -0.72%
• 1M: 1.28%
• 6M: 11.68%
• YTD: 12.76%
• 1Y: 26.34%
• 3Y*: 16.62%
• 5Y*: 12.26%
• 10Y*: 7.85%

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

PEPS vs. FTQI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PEPS Parametric Equity Plus ETF	10.53%	20.32%	-1.42%
FTQI First Trust Nasdaq BuyWrite Income ETF	12.76%	12.68%	1.32%

Correlation

The correlation between PEPS and FTQI is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (All Time) Calculated using the full available price history since Nov 8, 2024	0.92

The correlation between PEPS and FTQI has been stable across timeframes, ranging from 0.90 to 0.92 - a consistent structural relationship.

Return for Risk

PEPS vs. FTQI — Risk / Return Rank

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

PEPS

PEPS Risk / Return Rank: 69
PEPS Sharpe Ratio Rank: 70
PEPS Sortino Ratio Rank: 65
PEPS Omega Ratio Rank: 69
PEPS Calmar Ratio Rank: 63
PEPS Martin Ratio Rank: 77

FTQI

FTQI Risk / Return Rank: 91
FTQI Sharpe Ratio Rank: 90
FTQI Sortino Ratio Rank: 89
FTQI Omega Ratio Rank: 90
FTQI Calmar Ratio Rank: 89
FTQI Martin Ratio Rank: 94

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.

PEPS vs. FTQI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Plus ETF (PEPS) and First Trust Nasdaq BuyWrite Income ETF (FTQI). 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.

	PEPS	FTQI	Difference
Sharpe ratio: Return per unit of total volatility	1.80	2.43	-0.63
Sortino ratio: Return per unit of downside risk	2.41	3.37	-0.96
Omega ratio: Gain probability vs. loss probability	1.33	1.45	-0.13
Calmar ratio: Return relative to maximum drawdown	2.55	4.24	-1.69
Martin ratio: Return relative to average drawdown	11.24	20.07	-8.83

PEPS vs. FTQI - Sharpe Ratio Comparison

The current PEPS Sharpe Ratio is 1.80, which is comparable to the FTQI Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of PEPS and FTQI, 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

PEPS vs. FTQI - Drawdown Comparison

The maximum PEPS drawdown since its inception was -21.26%, which is greater than FTQI's maximum drawdown of -19.42%. Use the drawdown chart below to compare losses from any high point for PEPS and FTQI.

Drawdown Indicators

	PEPS	FTQI	Difference
Max Drawdown Largest peak-to-trough decline	-21.26%	-19.42%	-1.84%
Max Drawdown (1Y) Largest decline over 1 year	-9.80%	-6.24%	-3.56%
Max Drawdown (3Y) Largest decline over 3 years	—	-19.42%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-19.42%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-19.42%	—
Current Drawdown Current decline from peak	-0.66%	-0.85%	+0.19%
Average Drawdown Average peak-to-trough decline	-2.70%	-3.73%	+1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	1.32%	+0.90%

Volatility

PEPS vs. FTQI - Volatility Comparison

Parametric Equity Plus ETF (PEPS) has a higher volatility of 3.50% compared to First Trust Nasdaq BuyWrite Income ETF (FTQI) at 2.92%. This indicates that PEPS's price experiences larger fluctuations and is considered to be riskier than FTQI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PEPS	FTQI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.50%	2.92%	+0.58%
Volatility (6M) Calculated over the trailing 6-month period	10.90%	8.83%	+2.07%
Volatility (1Y) Calculated over the trailing 1-year period	13.85%	10.87%	+2.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.16%	14.82%	+3.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.16%	12.98%	+5.18%

PEPS vs. FTQI - Expense Ratio Comparison

PEPS has a 0.10% expense ratio, which is lower than FTQI's 0.75% expense ratio.

Dividends

PEPS vs. FTQI - Dividend Comparison

PEPS's dividend yield for the trailing twelve months is around 0.92%, less than FTQI's 10.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTQI First Trust Nasdaq BuyWrite Income ETF	10.92%	11.46%	11.66%	11.49%	9.85%	3.05%	3.27%	2.95%	3.27%	2.74%	3.02%	3.54%
PEPS Parametric Equity Plus ETF	0.92%	1.00%	0.17%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PEPS and FTQI in my portfolio?

With a correlation of 0.90, PEPS and FTQI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PEPS or FTQI?

PEPS has higher volatility (3.50%) compared to FTQI (2.92%). In terms of maximum drawdown, PEPS dropped -21.26% vs FTQI's -19.42%.

Which ETF is better, PEPS or FTQI?

On 1-year performance, FTQI leads with 26.34% vs 24.84% for PEPS. On fees, PEPS is cheaper at 0.10% per year. On volatility, FTQI has been the lower-risk option at 2.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PEPS or FTQI?

Over the 1-year period, FTQI has performed better with a 26.34% return vs 24.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PEPS or FTQI?

PEPS is cheaper with a 0.10% expense ratio, compared with 0.75% for FTQI.

Which ETF pays a higher dividend yield, PEPS or FTQI?

FTQI has the higher dividend yield at 10.92%, compared with 0.92% for PEPS.

What is the main difference between PEPS and FTQI?

PEPS is categorized as Derivative Income, while FTQI is Nasdaq-100. They also come from different issuers: Parametric and First Trust. Their fees differ too: 0.10% for PEPS and 0.75% for FTQI.

Which has better risk-adjusted returns?

FTQI currently has the higher Sharpe Ratio (2.43 vs 1.80), 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.