PAYR vs SPY
PAYR vs SPY
Federated Hermes Enhanced Income ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | PAYR | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.09% | |
| AUM | $57M | $789.1B | |
| Dividend Yield | 6.04% | 1.01% | |
| Holdings | 59 | 505 | |
| YTD Return | +8.70% | +13.10% | |
| 1Y Return | - | +22.80% | |
| 3Y Return (annualized) | - | +20.98% | |
| 5Y Return (annualized) | - | +13.20% | |
| Volatility (annualized) | - | 15.3% | |
| Max Drawdown | -7.3% | -56.5% | |
| Fund Family | Federated Hermes Funds | State Street Investment Management | |
| Category | Allocation/Balanced | Equity | |
| Inception | Oct 7, 2025 | Jan 22, 1993 |
PAYR vs SPY Performance
Federated Hermes Enhanced Income ETF (PAYR) is a ETF from Federated Hermes Funds and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Year to date, PAYR is up 8.70% versus a gain of 13.10% for SPY.
Risk: Volatility and Drawdowns
The deepest peak-to-trough decline in our data was -7.3% for PAYR and -56.5% for SPY. 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 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 6.04% against 1.01% for SPY.
Holdings Overlap
PAYR and SPY share 32 holdings out of 519 unique holdings combined, representing a 5.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PAYR | Weight in SPY | Difference |
|---|---|---|---|
| USB | 3.64% | 0.15% | 3.49% |
| TFC | 3.47% | 0.10% | 3.37% |
| PAYX | 3.45% | 0.05% | 3.40% |
| PNC | Pro | Pro | Pro |
| ABBV | Pro | Pro | Pro |
| PLD | Pro | Pro | Pro |
| PFE | Pro | Pro | Pro |
| KIM | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| AMT | Pro | Pro | Pro |
See all 10 holdings PAYR shares with SPY Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $31 per year of difference.
What is the holdings overlap between PAYR and SPY?
PAYR and SPY share 32 common holdings with a 5.4% weight overlap. Combined, they hold 519 unique securities.
Which pays a higher dividend, PAYR or SPY?
PAYR yields 6.04% while SPY yields 1.01%, so PAYR currently pays the higher dividend yield.
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