PAPI - ETF AI Analysis
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Parametric Equity Premium Income ETF (PAPI)
PAPI, the Parametric Equity Premium Income ETF, earns a solid overall rating thanks to strong contributions from high-quality holdings like Microsoft, Salesforce, and Accenture, which benefit from robust financial performance, growth in AI and cloud, and positive earnings outlooks. The fund also includes energy and industrial names such as Phillips 66 and International Seaways that add cash flow strength and attractive valuation, though some holdings like Skyworks Solutions and Avnet face profitability, cash flow, or overvaluation challenges that temper the rating. A key risk factor is the fund’s meaningful exposure to a handful of large technology and energy names, which can increase sensitivity to sector-specific downturns.
PAPI vs. SPDR S&P 500 ETF (SPY)
- AUM
- 519.23M
- Region
- North America
- Expense Ratio
- 0.29%
- Beta
- 0.31
- Issuer
- Parametric
- Inception Date
- Oct 16, 2023
- Dividend Yield
- 7.48%
- Asset Class
- Equity
- Index Tracked
- No Underlying Index
PAPI Summary
The Parametric Equity Premium Income ETF (PAPI) is a U.S.-focused fund that aims to cover the total stock market while also generating extra income. It doesn’t track a single index, but instead follows a broad market theme using a rules-based approach. The fund holds companies from many sectors, including technology, health care, energy, and consumer stocks. Well-known names in the portfolio include Cisco Systems and Target. Investors might consider PAPI for diversified stock exposure plus added income potential. A key risk is that it still moves with the overall stock market, so its value can go up and down.
How much will it cost me?
The Parametric Equity Premium Income ETF (PAPI) has an expense ratio of 0.29%, which means you’ll pay $2.90 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed, using sophisticated strategies to optimize returns and generate premium income. Active management typically involves more research and trading, which increases costs.
What would affect this ETF?
The Parametric Equity Premium Income ETF (PAPI) could benefit from positive trends in its key sectors, such as Technology and Health Care, which often thrive during periods of innovation and increased consumer demand. However, potential risks include economic slowdowns or rising interest rates, which could negatively impact sectors like Consumer Cyclical and Financials. Additionally, regulatory changes or geopolitical tensions in the U.S., where the ETF is focused, could create uncertainty for its holdings.
PAPI Top 10 Holdings
PAPI leans into a U.S. total-market story, but its top holdings reveal a few key engines under the hood. Energy names like Valero, Phillips 66, and HF Sinclair have been rising steadily, giving the fund a solid boost as cash flows stay robust. On the tech side, Microsoft and Skyworks are contributing, though their momentum has been more mixed, with Microsoft looking steady rather than explosive. Meanwhile, service and IT players like Salesforce and Cognizant are losing a bit of steam, slightly dragging on returns. Overall, the fund is diversified but with a noticeable tilt toward U.S. energy and tech.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 VLO | Valero Energy | 0.89% | $4.65M | $128.04B | 184.36% | 69Neutral |
 DINO | HF Sinclair Corporation | 0.82% | $4.28M | $22.27B | 147.46% | 68Neutral |
 PSX | Phillips 66 | 0.78% | $4.09M | $116.98B | 128.40% | 73Outperform |
 ACN | Accenture | 0.79% | $4.13M | $140.62B | -1.85% | 79Outperform |
 CRM | Salesforce | 0.75% | $3.93M | $198.10B | -2.15% | 80Outperform |
 MSFT | Microsoft | 0.71% | $3.69M | $3.93T | 3.41% | 79Outperform |
 CTSH | Cognizant | 0.75% | $3.89M | $29.74B | 0.86% | 79Outperform |
 INSW | International Seaways | 0.63% | $3.26M | $5.45B | 146.01% | 72Outperform |
 SWKS | Skyworks Solutions | 0.68% | $3.54M | $18.74B | 7.02% | 70Outperform |
PAPI Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PAPI, the sentiment is Positive. The current price of 27.55 is above the 20-day moving average (MA) of 26.75, above the 50-day MA of 27.23, and above the 200-day MA of 26.41, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 91.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAPI.
PAPI Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| PAPI | $27.55 | $29.00(5.26% Upside) | $519.23M | 0.29% | 70Neutral |
 SYLD | $84.07 | $94.79(12.75% Upside) | $1.00B | 0.59% | 69Neutral |
 SEUS | $25.75 | $30.96(20.21% Upside) | $943.98M | 0.30% | 73Outperform |
 BGDV | $30.92 | $37.13(20.09% Upside) | $861.28M | 0.45% | 74Outperform |
 AAUB | $50.37 | $62.35(23.78% Upside) | $851.32M | 0.10% | 69Neutral |
 AVTM | $54.40 | $64.62(18.78% Upside) | $785.25M | 0.22% | 60Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| PAPI | Parametric Equity Premium Income ETF | 27.55 | 3.55 | 14.77% | |
| SYLD | Cambria Shareholder Yield ETF | 84.07 | 17.75 | 26.76% | |
| SEUS | SEI QiM U.S. Equity Factor Allocation Active ETF | 25.75 | 0.48 | 1.92% | |
| BGDV | Bahl & Gaynor Dividend ETF | 30.92 | 4.33 | 16.30% | |
| AAUB | Alpha Architect US Equity 4 ETF | 50.37 | 0.88 | 1.79% | |
| AVTM | Avantis Total Equity Markets ETF | 54.40 | 4.76 | 9.59% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.