PAYR vs QQQ
Federated Hermes Enhanced Income ETF vs Invesco QQQ Trust, Series 1
Which is better, PAYR or QQQ?
Allocation/Balanced against Large Cap Growth.
QQQ has a lower expense ratio. PAYR led over 1Y and the full window.
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
| Metric | PAYR | QQQ |
|---|---|---|
| Expense Ratio | 0.40% | 0.18%Best |
| AUM | $93M | $437.3B |
| Dividend Yield | 8.03% | 0.43% |
| Holdings | 109 | 208 |
| YTD Return | +11.95% | +12.98%Best |
| 1Y Return | +13.22%Best | +11.59% |
| 3Y Return (annualized) | - | +23.05% |
| 5Y Return (annualized) | - | +12.74% |
| Volatility (annualized) | 14.2%Best | 22.3% |
| Max Drawdown | -8.8%Best | -14.8% |
| $10,000 over 1.1 years | $11,564Best | $11,354 |
| Fund Family | Federated Hermes Funds | Invesco (US) |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Growth |
| Inception | Oct 7, 2025 | Mar 10, 1999 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1.1 years row, are measured over the window both funds cover: Oct 8, 2025 to Nov 11, 2026 (1.1 years).
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 covers the 1.1 years both funds cover.
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 +13.22% while QQQ returned +11.59%. Year to date, PAYR is up 11.95% versus a gain of 12.98% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 22.3% compared with 14.2% for PAYR. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -8.8% for PAYR and -14.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at -0.39. They move together some of the time, and apart the rest.
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 8.03% against 0.43% for QQQ.
Holdings Overlap
At least 1.4% of QQQ's money is in holdings PAYR also owns.
Stated as a floor: for PAYR, our book for it covers 92.1% 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.
4 positions in common, counted across the 47 positions we hold weights for in PAYR and 101 in QQQ, against full books of 109 and 208.
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.
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 +13.22% vs +11.59% for QQQ, so PAYR leads on 1-year performance. Over the longest common window we track (1 years), PAYR annualized +14.12% vs +12.24% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAYR or QQQ?
QQQ has been the more volatile fund at 22.3% annualized versus 14.2% for PAYR. Worst drawdown: PAYR -8.8% vs QQQ -14.8%.
Should I hold both PAYR and QQQ?
PAYR and QQQ have a monthly-return correlation of -0.39, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PAYR and QQQ?
At least 1.4% 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 4 positions in common, counted across the 47 positions we hold weights for in PAYR and 101 in QQQ.
Which pays a higher dividend, PAYR or QQQ?
PAYR yields 8.03% while QQQ yields 0.43%, so PAYR currently pays the higher dividend yield.
Is QQQ better than PAYR?
QQQ has a lower expense ratio. PAYR led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.