Security Comparison

PYPL vs PYPY: Which Is the Better Pick in 2026?

A head-to-head comparison of PayPal Holdings Inc. and YieldMax PYPL Option Income Strategy ETF covering yield, cost, risk, and income potential.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

PYPLInvestors who want direct ownership of the underlying business, with no fund wrapper or management fee.
PYPYInvestors who want to maximize current income — roughly 30.92%, generated by selling options premium.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

PYPL has outpaced PYPY over the trailing twelve months, posting a -13.20% total return against -17.42%. Over 3 years the two are effectively even, compounding at 0.19% and 0.19% a year. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	Since Sep 2023	Volatility	Sharpe	Sortino	Max drawdown
PYPL	-2.02%	-13.20%	0.19%	-0.90%	39.1%	-0.10	-0.13	-57.3%
PYPY	-7.71%	-17.42%	0.19%	-0.53%	33.2%	-0.12	-0.15	-53.6%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Sep 2023” measures every fund from September 26, 2023 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Distribution rate, SEC yield and return of capital

Metric	PYPL	PYPY
Forward distribution rate	0.99%	30.92%
Trailing 12-month yield	0.99%	59.82%
30-day SEC yield	—	3.15%
Return of capital	—	89.86%

Total return (price change plus reinvested distributions) is the Total returns section above. Return of capital is the share of a recent distribution that was not income. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	PYPL	PYPY
Full name	PayPal Holdings Inc.	YieldMax PYPL Option Income Strategy ETF
Issuer	—	YieldMax
Last Close	$56.70 as of October 16, 2026	$25.88 as of October 16, 2026
Distribution rate	0.99%	30.92%
Trailing 12-month yield	0.99%	59.82%
30-day SEC yield	—	3.15%
Distribution Safety Score™	50	27
Safety-Adjusted Yield	—	8.35%
Expense ratio	—	1.31%
AUM	—	$12.1M
Distribution frequency	Quarterly	Weekly
Underlying index	—	PayPal (PYPL)
Objective	—	YieldMax PYPL Option Income Strategy ETF seeks current income while providing indirect exposure to the share price returns of PayPal Holdings, Inc. common stock, subject to a limit on potential investment gains. The fund does not invest directly in PayPal Holdings, Inc.; it uses a synthetic covered call strategy built from standardized exchange-traded options.
Asset class	Equity	Equity
Inception date	N/A	09/25/2023
Beta	1.28	0.73
Last dividend	$0.14	$0.1539 payable today
Ex-dividend date	09/04/2026	10/15/2026

Bottom lineChoose PYPL if you want direct ownership of the underlying business, with no fund wrapper or management fee. Choose PYPY if you want to maximize current income — roughly 30.92%, generated by selling options premium. There's no free lunch: PYPY's payout comes from selling options, which caps upside and can erode the share price over time, while PYPL keeps full price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

Capped upside and premium dependence. PYPY generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

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Income calculator

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YieldMax

ETFs62

Total AUM$10.0B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

YieldMax is known for specializing in options-based and income-focused ETFs that emphasize yield generation through covered call strategies and other income-producing methodologies. The firm operates a diverse lineup of 63 funds organized across multiple families including covered call strategies, 0DTE (zero days to expiration) options, double distribution approaches, and various target-date and performance-based portfolios designed to generate regular distributions. Notable offerings span popular underlying assets like major technology stocks and broad market indices, with a particular emphasis on providing enhanced income solutions for investors seeking regular cash flows through options strategies and other tactical approaches.

See our curated list of related YouTube videos on PYPY.

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Quick verdict

PYPL (PayPal Holdings Inc.) is a stock, while PYPY (YieldMax PYPL Option Income Strategy ETF) is an ETF — their trading structures differ.

PYPY offers the higher yield at 30.92% vs 0.99% for PYPL. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

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Deep dive

Yield & income

On a $10,000 investment, PYPL would generate roughly $24.75 cash per distribution, while PYPY would produce $59.46 cash per distribution, at current distribution rates.

PYPL yield0.99%

PYPY yield30.92%

Cash diff on $10K$34.71

Cost & efficiency

PYPY charges a 1.31% expense ratio — roughly $1,310 over 10 years on $10,000 (simplified, not compounded). PYPL is a stock, not a fund, so it charges no expense ratio.

PYPY ER1.31%

Strategy & risk

PYPL is a stock built around financials exposure, while PYPY tracks PayPal (PYPL) with a covered call approach. Beta is 1.28 for PYPL and 0.73 for PYPY, making PYPY the less volatile of the two by this measure.

PYPL beta1.28

PYPY beta0.73

Security details

PYPL (PayPal Holdings Inc.) is a stock. PYPY is managed by YieldMax (launched 09/25/2023) with $12.1M in assets.

PYPY AUM$12.1M

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Frequently asked questions

What is the current distribution rate for PYPL and PYPY?

PYPL currently distributes 0.99% and PYPY 30.92%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is PYPL or PYPY better for dividend income?

It depends on your goals. PYPY currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between PYPL and PYPY?

PYPL (PayPal Holdings Inc.) is a stock built around financials exposure, while PYPY (YieldMax PYPL Option Income Strategy ETF) tracks PayPal (PYPL) with a covered call approach. They are issued by — and YieldMax respectively.

Can I hold both PYPL and PYPY?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is PYPL or PYPY safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — PYPL scores 50, PYPY scores 27, so PYPL's payout currently looks the more resilient of the two. PYPY has also shown lower price volatility (beta 0.73 vs 1.28 for PYPL). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, PYPL or PYPY?

PYPY charges a 1.31% expense ratio. PYPL is a stock, not a fund, so it has no expense ratio — owning it directly costs nothing in ongoing fund fees.

How much income does $10,000 in PYPL vs PYPY generate?

At current rates, $10,000 in PYPL would generate roughly $24.75 cash per distribution ($99.00 annually). The same in PYPY would produce about $59.46 cash per distribution ($3,092.00 annually).

Which has performed better historically, PYPL or PYPY?

More comparisons to explore

Popular comparisons

PYPL vs PYPY — at a glance

Generated October 17, 2026.

Overview

PayPal Holdings (PYPL) is a financial-services stock that processes digital payments and transfers; it trades with a modest 0.99% dividend yield paid quarterly. PYPY is a synthetic covered-call ETF launched in 09/25/2023 that holds PayPal indirectly through exchange-traded options, generating weekly income by selling upside calls against that exposure. The core tradeoff is between owning the stock outright and owning a capped, income-focused derivative overlay on the same underlying company.

How they differ

PYPY's most obvious difference is its distribution rate.

PYPY's price cap and dampened beta (0.73 versus PYPL's 1.28) reflect the collar embedded in its strategy: the fund sells out-of-the-money calls to finance the income, so it lags in strong rallies and participates less in downturns. PYPY is also the newer and much smaller fund, with only $12.1M in assets and a 3 years-month track record; PYPL has been publicly traded since 07/06/2015.

Who each is best for

PYPL: Fits investors seeking direct exposure to PayPal's long-term business and willing to accept full volatility in exchange for capital appreciation and a modest quarterly payout; those comfortable with the full upside and downside of a mid-cap fintech stock.

PYPY: Designed for income-focused investors willing to trade away price gains above the cap strike in exchange for aggressive weekly distributions; those prioritizing current cash flow over long-term principal growth and comfortable with the operational and liquidity risks of a small, young fund.

Key risks to know

NAV erosion at extreme yield levels. A 30.92% annualized distribution rate paired with a small asset base and 3 years-month track record raises the question of whether that yield is sustainable or funded partly by principal decay. Option-income strategies that consistently pay out at or near 30% yields have historically shown NAV erosion; investors should examine this fund's historical NAV trend against its stated yield to understand the relationship.

Capped upside and call-assignment risk. PYPY's covered-call overlay locks in a maximum gain per period. If PayPal rallies sharply, PYPY's price won't follow; the fund may also face assignment on calls, triggering forced sales of the underlying and disrupting the income stream.

Concentration and single-stock risk. Both securities are fully exposed to PayPal, so company-specific regulatory, competitive, or operational shocks hit identically. Neither diversifies; PYPY's synthetic structure does not reduce that single-company risk. A sharp redemption wave could force the fund to liquidate positions inelegantly.

Option market risk. PYPY depends on consistent, liquid options markets for PayPal. A spike in implied volatility or a dry spell in call demand could impair the fund's ability to write calls at favorable strikes and meet its distribution target.

Bottom line

If you want PayPal equity ownership with full price upside and quarterly income, PYPL offers that structure. If you prioritize current weekly income and can live with a capped gain ceiling and the liquidity and NAV risks of a young, tiny fund, PYPY offers materially higher yield in exchange for that trade. The extreme distribution rate and minimal track record for PYPY warrant examining its historical NAV trend and option-execution costs; past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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The metrics behind this comparison, explained in the Academy.

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These comparisons follow the Dividend Vision methodology.