PAYR vs VYM
Federated Hermes Enhanced Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | PAYR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $63M | $81.6B | |
| Dividend Yield | 6.48% | 2.24% | |
| Holdings | 56 | 616 | |
| YTD Return | +10.68% | +15.34% | |
| 1Y Return | - | +23.24% | |
| 3Y Return (annualized) | - | +19.22% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | - | 14.6% | |
| Max Drawdown | -7.3% | -58.8% | |
| Fund Family | Federated Hermes Funds | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Oct 7, 2025 | Nov 10, 2006 |
PAYR vs VYM Performance
Federated Hermes Enhanced Income ETF (PAYR) is a ETF from Federated Hermes Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Year to date, PAYR is up 10.68% versus a gain of 15.34% for VYM.
Risk: Volatility and Drawdowns
The deepest peak-to-trough decline in our data was -7.3% for PAYR and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
Fees and Cost Over Time
PAYR charges 0.40% per year while VYM charges 0.04%. On a $10,000 position that is $40 vs $4 annually, a gap of $36 per year that compounds over a long holding period. On income, PAYR currently yields 6.48% against 2.24% for VYM.
Holdings Overlap
PAYR and VYM share 30 holdings out of 620 unique holdings combined, representing a 12.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, PAYR or VYM?
PAYR has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
What is the holdings overlap between PAYR and VYM?
PAYR and VYM share 30 common holdings with a 12.4% weight overlap. Combined, they hold 620 unique securities.
Which pays a higher dividend, PAYR or VYM?
PAYR yields 6.48% while VYM yields 2.24%, so PAYR currently pays the higher dividend yield.
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