XLII vs. PAPI

Last updated Jun 4, 2026

XLII (State Street Industrial Select Sector SPDR Premium Income ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. Both are actively managed. A 0.51 correlation means they provide meaningful diversification when combined. XLII charges 0.35%/yr vs 0.29%/yr for PAPI.

Performance

XLII vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Industrial Select Sector SPDR Premium Income ETF (XLII) 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, XLII achieves a 6.73% return, which is significantly higher than PAPI's 5.81% return.

XLII

• 1D: -0.15%
• 1M: 2.45%
• YTD: 6.73%
• 6M: 8.74%
• 1Y: —
• 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)

XLII vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025
XLII State Street Industrial Select Sector SPDR Premium Income ETF	6.73%	6.62%
PAPI Parametric Equity Premium Income ETF	5.81%	4.71%

Correlation

The correlation between XLII and PAPI is 0.51, 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 31, 2025	0.51

XLII vs. PAPI - Sectors Allocation Comparison

Sectors	XLII	PAPI
Financial Services	100.3%	9.9%
Basic Materials	-	7.8%
Communication Services	-	5.4%
Consumer Cyclical	-	12.1%
Consumer Defensive	-	10.1%
Energy	-	11.6%
Healthcare	-	10.7%
Industrials	-	9.9%
Real Estate	-	-
Technology	-	12.5%
Utilities	-	10.1%

Return for Risk

XLII vs. PAPI — Risk / Return Rank

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

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.

XLII vs. PAPI - Risk-Adjusted Trends Comparison

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

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

Sharpe Ratios by Period

	XLII	PAPI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.19	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.44	0.88	+0.56

Drawdowns

XLII vs. PAPI - Drawdown Comparison

The maximum XLII drawdown since its inception was -10.10%, smaller than the maximum PAPI drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for XLII and PAPI.

Drawdown Indicators

	XLII	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-10.10%	-14.27%	+4.17%
Max Drawdown (1Y) Largest decline over 1 year	—	-6.86%	—
Current Drawdown Current decline from peak	-0.36%	-5.06%	+4.70%
Average Drawdown Average peak-to-trough decline	-1.34%	-2.73%	+1.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.53%	—

Volatility

Volatility by Period

	XLII	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.23%	—
Volatility (6M) Calculated over the trailing 6-month period	—	7.00%	—
Volatility (1Y) Calculated over the trailing 1-year period	11.55%	10.55%	+1.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.55%	11.76%	-0.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.55%	11.76%	-0.21%

XLII vs. PAPI - Expense Ratio Comparison

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

Dividends

XLII vs. PAPI - Dividend Comparison

XLII's dividend yield for the trailing twelve months is around 11.29%, 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%
XLII State Street Industrial Select Sector SPDR Premium Income ETF	11.29%	5.47%	0.00%	0.00%

Frequently Asked Questions

Can I hold both XLII and PAPI in my portfolio?

XLII and PAPI have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XLII 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, XLII or PAPI?

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

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

XLII has the higher dividend yield at 11.29%, compared with 7.62% for PAPI.

What is the main difference between XLII and PAPI?

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