SDVD vs. PAPI

Last updated Jun 4, 2026

SDVD (FT Vest SMID Rising Dividend Achievers Target Income ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. SDVD is passively managed, while PAPI is actively managed. Over the past year, SDVD returned 19.64% vs 12.39% for PAPI. A 0.75 correlation means they provide meaningful diversification when combined. SDVD charges 0.85%/yr vs 0.29%/yr for PAPI.

Performance

SDVD vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Vest SMID Rising Dividend Achievers Target Income ETF (SDVD) and Parametric Equity Premium Income ETF (PAPI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SDVD achieves a 7.75% return, which is significantly higher than PAPI's 5.81% return.

SDVD

• 1D: -0.22%
• 1M: -1.53%
• YTD: 7.75%
• 6M: 8.14%
• 1Y: 19.64%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAPI

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

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

SDVD vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SDVD FT Vest SMID Rising Dividend Achievers Target Income ETF	7.75%	8.66%	11.82%	19.12%
PAPI Parametric Equity Premium Income ETF	5.81%	6.33%	8.90%	5.36%

Correlation

The correlation between SDVD and PAPI is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (All Time) Calculated using the full available price history since Oct 20, 2023	0.75

The correlation between SDVD and PAPI has been stable across timeframes, ranging from 0.71 to 0.75 - a consistent structural relationship.

Return for Risk

SDVD vs. PAPI — Risk / Return Rank

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

SDVD

SDVD Risk / Return Rank: 43
SDVD Sharpe Ratio Rank: 39
SDVD Sortino Ratio Rank: 43
SDVD Omega Ratio Rank: 38
SDVD Calmar Ratio Rank: 47
SDVD Martin Ratio Rank: 47

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

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.

SDVD vs. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Vest SMID Rising Dividend Achievers Target Income ETF (SDVD) and Parametric Equity Premium Income ETF (PAPI). 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.

	SDVD	PAPI	Difference
Sharpe ratio: Return per unit of total volatility	1.38	1.19	+0.19
Sortino ratio: Return per unit of downside risk	2.13	1.82	+0.31
Omega ratio: Gain probability vs. loss probability	1.25	1.21	+0.04
Calmar ratio: Return relative to maximum drawdown	2.25	1.81	+0.44
Martin ratio: Return relative to average drawdown	7.65	4.90	+2.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SDVD vs. PAPI - Sharpe Ratio Comparison

The current SDVD Sharpe Ratio is 1.38, which is comparable to the PAPI Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of SDVD and PAPI, 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

	SDVD	PAPI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.38	1.19	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	0.77	0.88	-0.11

Drawdowns

SDVD vs. PAPI - Drawdown Comparison

The maximum SDVD drawdown since its inception was -24.17%, which is greater than PAPI's maximum drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for SDVD and PAPI.

Drawdown Indicators

	SDVD	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-24.17%	-14.27%	-9.90%
Max Drawdown (1Y) Largest decline over 1 year	-8.76%	-6.86%	-1.90%
Current Drawdown Current decline from peak	-3.31%	-5.06%	+1.75%
Average Drawdown Average peak-to-trough decline	-4.86%	-2.73%	-2.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.57%	2.53%	+0.04%

Volatility

SDVD vs. PAPI - Volatility Comparison

FT Vest SMID Rising Dividend Achievers Target Income ETF (SDVD) has a higher volatility of 3.78% compared to Parametric Equity Premium Income ETF (PAPI) at 2.23%. This indicates that SDVD's price experiences larger fluctuations and is considered to be riskier than PAPI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SDVD	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.78%	2.23%	+1.55%
Volatility (6M) Calculated over the trailing 6-month period	10.33%	7.00%	+3.33%
Volatility (1Y) Calculated over the trailing 1-year period	14.31%	10.55%	+3.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.19%	11.76%	+6.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.19%	11.76%	+6.43%

SDVD vs. PAPI - Expense Ratio Comparison

SDVD has a 0.85% expense ratio, which is higher than PAPI's 0.29% expense ratio.

Dividends

SDVD vs. PAPI - Dividend Comparison

SDVD's dividend yield for the trailing twelve months is around 8.95%, more than PAPI's 7.62% yield.

Position	TTM	2025	2024	2023
PAPI Parametric Equity Premium Income ETF	7.62%	7.59%	7.07%	1.45%
SDVD FT Vest SMID Rising Dividend Achievers Target Income ETF	8.95%	8.36%	9.26%	3.18%

Frequently Asked Questions

Can I hold both SDVD and PAPI in my portfolio?

SDVD and PAPI have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SDVD or PAPI?

SDVD has higher volatility (3.78%) compared to PAPI (2.23%). In terms of maximum drawdown, SDVD dropped -24.17% vs PAPI's -14.27%.

Which ETF is better, SDVD or PAPI?

On 1-year performance, SDVD leads with 19.64% 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, SDVD or PAPI?

Over the 1-year period, SDVD has performed better with a 19.64% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SDVD or PAPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.85% for SDVD.

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

SDVD has the higher dividend yield at 8.95%, compared with 7.62% for PAPI.

What is the main difference between SDVD and PAPI?

They also come from different issuers: First Trust and Morgan Stanley. Their fees differ too: 0.85% for SDVD and 0.29% for PAPI.

Which has better risk-adjusted returns?

SDVD currently has the higher Sharpe Ratio (1.38 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.