INCM vs PAYR
Franklin Income Focus ETF vs Federated Hermes Enhanced Income ETF
Which is better, INCM or PAYR?
Each has led over a different period.
INCM has a lower expense ratio. INCM led over 1Y, PAYR over 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 | INCM | PAYR |
|---|---|---|
| Expense Ratio | 0.38%Best | 0.40% |
| AUM | $1.9B | $82M |
| Dividend Yield | 5.40% | 8.32% |
| Holdings | 396 | 55 |
| YTD Return | +6.40%Best | +6.04% |
| 1Y Return | +9.34%Best | +9.06% |
| 3Y Return (annualized) | +11.90% | - |
| Volatility (annualized) | 6.6%Best | 12.7% |
| Max Drawdown | -3.3%Best | -8.8% |
| $10,000 over 1 years | $10,884 | $10,927Best |
| Fund Family | Franklin Templeton Investments (US) | Federated Hermes Funds |
| Category | Allocation/Balanced | Allocation/Balanced |
| Style | Allocation/Balanced | Allocation/Balanced |
| Inception | Jun 6, 2023 | Oct 7, 2025 |
Not shown on this pair: 5Y Return (annualized), Top 10 Weight.
Volatility and max drawdown, and the $10,000 over 1 years row, are measured over the window both funds cover: Oct 8, 2025 to Oct 14, 2026 (1 years).
INCM vs PAYR 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 years both funds cover.
INCM vs PAYR Performance
Franklin Income Focus ETF (INCM) is an ETF from Franklin Templeton Investments (US) and Federated Hermes Enhanced Income ETF (PAYR) is an ETF from Federated Hermes Funds. Over the past year INCM returned +9.34% while PAYR returned +9.06%. Year to date, INCM is up 6.40% versus a gain of 6.04% for PAYR.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
PAYR has been the more volatile fund, with annualized monthly volatility of 12.7% compared with 6.6% for INCM. 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 -3.3% for INCM and -8.8% for PAYR. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
INCM charges 0.38% per year while PAYR charges 0.40%. On a $10,000 position that is $38 vs $40 annually, a gap of $2 per year that compounds over a long holding period. On income, INCM currently yields 5.40% against 8.32% for PAYR.
Holdings Overlap
We hold position weights for 266 holdings in INCM and 46 in PAYR, totalling 57.7% and 91.8% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 8 positions appear in both.
8 positions in common, counted across the 266 positions we hold weights for in INCM and 46 in PAYR, against full books of 396 and 55.
Top Shared Holdings
| Stock | Weight in INCM | Weight in PAYR | Difference |
|---|---|---|---|
| USBUS Bancorp | 0.54% | 3.96% | 3.42% |
| PEPPepsico Inc. | 1.12% | 2.47% | 1.35% |
| PFEPfizer Inc | 0.56% | 2.86% | 2.30% |
| DUKDuke Energy Corp | 1.10% | 1.83% | 0.73% |
| PMPhilip Morris International Inc. | 0.76% | 2.05% | 1.29% |
| SOSouthern Co. | 0.98% | 0.76% | 0.22% |
| ACNAccenture Plc | 0.32% | 0.91% | 0.59% |
| XELXcel Energy Inc. | 0.29% | 0.91% | 0.62% |
You are not choosing between two funds in isolation.
Whichever of INCM and PAYR 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, INCM or PAYR?
INCM has an expense ratio of 0.38% while PAYR charges 0.40%. INCM is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, INCM or PAYR?
Over the past year INCM returned +9.34% vs +9.06% for PAYR, so INCM leads on 1-year performance. Over the longest common window we track (1 years), INCM annualized +8.84% vs +9.27% for PAYR. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, INCM or PAYR?
PAYR has been the more volatile fund at 12.7% annualized versus 6.6% for INCM. Worst drawdown: INCM -3.3% vs PAYR -8.8%.
Should I hold both INCM and PAYR?
INCM and PAYR have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, INCM or PAYR?
INCM yields 5.40% while PAYR yields 8.32%, so PAYR currently pays the higher dividend yield.
Is PAYR better than INCM?
INCM has a lower expense ratio. INCM led over 1Y, PAYR over the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.