PAYR vs SPY

PAYR vs SPY

Which is better, PAYR or SPY?

Allocation/Balanced against Large Cap Blend.

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

Lower Fees: SPYHigher Returns (1Y): SPY

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

MetricPAYRSPY
Expense Ratio0.40%0.09%Best
AUM$70M$804.7B
Dividend Yield7.11%0.98%
Holdings56505
YTD Return+8.25%+11.52%Best
1Y Return+11.70%+17.48%Best
3Y Return (annualized)-+20.62%
5Y Return (annualized)-+12.73%
Fund FamilyFederated Hermes FundsState Street Investment Management
CategoryAllocation/BalancedEquity
StyleAllocation/BalancedLarge Cap Blend
InceptionOct 7, 2025Jan 22, 1993

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

PAYR vs SPY 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 SPY Performance

Federated Hermes Enhanced Income ETF (PAYR) is an ETF from Federated Hermes Funds and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year PAYR returned +11.70% while SPY returned +17.48%. Year to date, PAYR is up 8.25% versus a gain of 11.52% for SPY.

Past performance does not guarantee future results.

Fees and Cost Over Time

PAYR charges 0.40% per year while SPY charges 0.09%. On a $10,000 position that is $40 vs $9 annually, a gap of $31 per year that compounds over a long holding period. On income, PAYR currently yields 7.11% against 0.98% for SPY.

Holdings Overlap

SPY already in PAYR5.0%

At least 5.0% of SPY'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.

SPY and PAYR share little of their money.

33 positions in common, counted across the 47 positions we hold weights for in PAYR and 504 in SPY, against full books of 56 and 505.

Top Shared Holdings

StockWeight in PAYRWeight in SPYDifference
USBUS Bancorp4.07%0.15%3.92%
PAYXPaychex, Inc.4.07%0.06%4.01%
VZVerizon Communications, Inc.3.36%0.29%3.07%
PNCPnc Financial Services Group Inc.2.75%0.15%2.60%
PLDPrologis Inc2.66%0.19%2.47%
PEPPepsico Inc.2.55%0.29%2.26%
PFEPfizer, Inc.2.53%0.22%2.31%
KIMKimco Realty Corp.2.71%0.03%2.68%
FEFirstenergy Corp.2.65%0.04%2.61%
RFRegions Financial Corp.2.55%0.04%2.51%

You are not choosing between two funds in isolation.

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

PAYRSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, PAYR or SPY?

PAYR has an expense ratio of 0.40% while SPY charges 0.09%. SPY is the cheaper option, by $31 a year on a $10,000 investment.

Which performed better, PAYR or SPY?

Over the past year PAYR returned +11.70% vs +17.48% for SPY, so SPY 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 SPY?

At least 5.0% of SPY's money is in holdings PAYR also owns. Our book for PAYR is partial, so the real figure is this or higher. They hold 33 positions in common, counted across the 47 positions we hold weights for in PAYR and 504 in SPY.

Which pays a higher dividend, PAYR or SPY?

PAYR yields 7.11% while SPY yields 0.98%, so PAYR currently pays the higher dividend yield.

Is SPY better than PAYR?

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