PAPI

📎 Investment Objective

The Parametric Equity Premium Income ETF (PAPI) seeks to provide current income and long-term capital appreciation by investing in a portfolio of U.S. large-cap stocks that the fund's manager believes have the potential to generate above-average dividend income.

✨ Key Features

• Focuses on U.S. large-cap stocks with the potential for above-average dividend income
• Employs a systematic, rules-based investment approach to identify undervalued stocks
• Aims to provide current income and long-term capital appreciation
• Relatively low expense ratio compared to actively managed funds

⚠️ Primary Risks

• Market risk: The value of the fund's holdings may decline due to general market conditions
• Dividend risk: Companies may reduce or eliminate dividend payments, which could negatively impact the fund's income generation
• Concentration risk: The fund's focus on a specific market segment (large-cap U.S. stocks) may make it more volatile than a more diversified fund
• Liquidity risk: The fund may have difficulty selling certain holdings, particularly during periods of market stress

👤 Best For

The Parametric Equity Premium Income ETF may be suitable for investors seeking a source of current income and long-term capital appreciation, with a focus on U.S. large-cap stocks. It may be particularly appealing to investors with a value-oriented investment approach who are willing to accept the risks associated with a concentrated portfolio of dividend-paying stocks.