XLBI vs. PAPI

Last updated Jul 18, 2026

XLBI (State Street Materials Select Sector SPDR Premium Income ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. Both are actively managed. A 0.58 correlation means they provide meaningful diversification when combined. XLBI charges 0.35%/yr vs 0.29%/yr for PAPI.

Performance

XLBI vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Materials Select Sector SPDR Premium Income ETF (XLBI) 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, XLBI achieves a 7.03% return, which is significantly lower than PAPI's 11.45% return.

XLBI

• 1D: -0.44%
• 1M: -1.63%
• 6M: 4.62%
• YTD: 7.03%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAPI

• 1D: -0.25%
• 1M: 5.49%
• 6M: 6.51%
• YTD: 11.45%
• 1Y: 16.29%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XLBI vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025
XLBI State Street Materials Select Sector SPDR Premium Income ETF	7.03%	2.25%
PAPI Parametric Equity Premium Income ETF	11.45%	3.74%

Correlation

The correlation between XLBI and PAPI is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.58

Return for Risk

XLBI vs. PAPI — Risk / Return Rank

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

XLBI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

PAPI

PAPI Risk / Return Rank: 57
PAPI Sharpe Ratio Rank: 59
PAPI Sortino Ratio Rank: 64
PAPI Omega Ratio Rank: 54
PAPI Calmar Ratio Rank: 61
PAPI Martin Ratio Rank: 45

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.

XLBI vs. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Materials Select Sector SPDR Premium Income ETF (XLBI) 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.

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.

	XLBI	PAPI	Difference
Sharpe ratio: Return per unit of total volatility	—	1.56	—
Sortino ratio: Return per unit of downside risk	—	2.35	—
Omega ratio: Gain probability vs. loss probability	—	1.27	—
Calmar ratio: Return relative to maximum drawdown	—	2.38	—
Martin ratio: Return relative to average drawdown	—	5.90	—

Drawdowns

XLBI vs. PAPI - Drawdown Comparison

The maximum XLBI drawdown since its inception was -10.62%, smaller than the maximum PAPI drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for XLBI and PAPI.

Drawdown Indicators

	XLBI	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-10.62%	-14.27%	+3.65%
Max Drawdown (1Y) Largest decline over 1 year	—	-6.86%	—
Current Drawdown Current decline from peak	-2.58%	-0.25%	-2.33%
Average Drawdown Average peak-to-trough decline	-2.11%	-2.75%	+0.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.77%	—

Volatility

Volatility by Period

	XLBI	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	3.56%	—
Volatility (6M) Calculated over the trailing 6-month period	—	7.19%	—
Volatility (1Y) Calculated over the trailing 1-year period	13.84%	10.48%	+3.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.84%	11.74%	+2.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.84%	11.74%	+2.10%

XLBI vs. PAPI - Expense Ratio Comparison

XLBI has a 0.35% expense ratio, which is higher than PAPI's 0.29% expense ratio.

Dividends

XLBI vs. PAPI - Dividend Comparison

XLBI's dividend yield for the trailing twelve months is around 14.94%, more than PAPI's 7.35% yield.

Position	TTM	2025	2024	2023
PAPI Parametric Equity Premium Income ETF	7.35%	7.59%	7.07%	1.45%
XLBI State Street Materials Select Sector SPDR Premium Income ETF	14.94%	7.71%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XLBI and PAPI in my portfolio?

XLBI and PAPI have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLBI or PAPI?

On fees, PAPI is cheaper at 0.29% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XLBI or PAPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.35% for XLBI.

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

XLBI has the higher dividend yield at 14.94%, compared with 7.35% for PAPI.

What is the main difference between XLBI and PAPI?

They also come from different issuers: State Street and Morgan Stanley. Their fees differ too: 0.35% for XLBI and 0.29% for PAPI.