PAYR vs QQQ

PAYR vs QQQ

Which is better, PAYR or QQQ?

Allocation/Balanced against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y.

Lower Fees: QQQHigher Returns (1Y): QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricPAYRQQQ
Expense Ratio0.40%0.18%Best
AUM$70M$483.5B
Dividend Yield7.11%0.44%
Holdings56107
YTD Return+8.52%+16.87%Best
1Y Return+11.98%+22.98%Best
3Y Return (annualized)-+24.98%
5Y Return (annualized)-+14.39%
Fund FamilyFederated Hermes FundsInvesco (US)
CategoryAllocation/BalancedEquity
StyleAllocation/BalancedLarge Cap Growth
InceptionOct 7, 2025Mar 10, 1999

Not shown on this pair: Volatility (annualized), Max Drawdown, $10,000 over the window, Top 10 Weight.

PAYR vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

PAYR vs QQQ Performance

Federated Hermes Enhanced Income ETF (PAYR) is an ETF from Federated Hermes Funds and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year PAYR returned +11.98% while QQQ returned +22.98%. Year to date, PAYR is up 8.52% versus a gain of 16.87% for QQQ.

Past performance does not guarantee future results.

Fees and Cost Over Time

PAYR charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, PAYR currently yields 7.11% against 0.44% for QQQ.

Holdings Overlap

QQQ already in PAYR3.0%

At least 3.0% of QQQ's money is in holdings PAYR also owns.

Stated as a floor: for PAYR, our book for it covers 93.5% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

QQQ and PAYR share little of their money.

6 positions in common, counted across the 47 positions we hold weights for in PAYR and 102 in QQQ, against full books of 56 and 107.

Top Shared Holdings

StockWeight in PAYRWeight in QQQDifference
PAYXPaychex, Inc.4.07%0.19%3.88%
PEPPepsico Inc.2.55%0.83%1.72%
ADPAutomatic Data Processing, Inc.1.79%0.47%1.32%
AMGNAmgen Inc.1.10%0.97%0.13%
MDLZMondelez International Inc. Class A1.66%0.35%1.31%
XELXcel Energy Inc.0.95%0.21%0.74%

You are not choosing between two funds in isolation.

Whichever of PAYR and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

PAYRQQQ

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PAYR or QQQ?

PAYR has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option, by $22 a year on a $10,000 investment.

Which performed better, PAYR or QQQ?

Over the past year PAYR returned +11.98% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

What is the holdings overlap between PAYR and QQQ?

At least 3.0% of QQQ's money is in holdings PAYR also owns. Our book for PAYR is partial, so the real figure is this or higher. They hold 6 positions in common, counted across the 47 positions we hold weights for in PAYR and 102 in QQQ.

Which pays a higher dividend, PAYR or QQQ?

PAYR yields 7.11% while QQQ yields 0.44%, so PAYR currently pays the higher dividend yield.

Is QQQ better than PAYR?

QQQ has a lower expense ratio. QQQ led over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.