PAYR vs VYM
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 558 holdings.
Side-by-Side Comparison
| Metric | PAYR | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.04% | |
| AUM | $57M | $79.0B | |
| Dividend Yield | 6.04% | 2.86% | |
| Holdings | 59 | 568 | |
| YTD Return | +9.45% | +15.80% | |
| 1Y Return | - | +26.12% | |
| 3Y Return (annualized) | - | +18.25% | |
| 5Y Return (annualized) | - | +12.51% | |
| 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 9.45% versus a gain of 15.80% 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 6.04% against 2.86% for VYM.
Holdings Overlap
PAYR and VYM share 29 holdings out of 577 unique holdings combined, representing a 14.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PAYR | Weight in VYM | Difference |
|---|---|---|---|
| ABBV | 2.65% | 1.80% | 0.85% |
| USB | 3.64% | 0.37% | 3.27% |
| TFC | 3.47% | 0.28% | 3.19% |
| PNC | Pro | Pro | Pro |
| PEP | Pro | Pro | Pro |
| PAYX | Pro | Pro | Pro |
| PFE | Pro | Pro | Pro |
| PM | Pro | Pro | Pro |
| VZ | Pro | Pro | Pro |
| MRK | Pro | Pro | Pro |
See all 10 holdings PAYR shares with VYM 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 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 29 common holdings with a 14.2% weight overlap. Combined, they hold 577 unique securities.
Which pays a higher dividend, PAYR or VYM?
PAYR yields 6.04% while VYM yields 2.86%, so PAYR currently pays the higher dividend yield.
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