PAYR vs SCHD
Federated Hermes Enhanced Income ETF vs Schwab US Dividend Equity ETF
Which is better, PAYR or SCHD?
Allocation/Balanced against Large Cap Value.
SCHD has a lower expense ratio. SCHD led over 1Y and 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 | PAYR | SCHD |
|---|---|---|
| Expense Ratio | 0.40% | 0.06%Best |
| AUM | $82M | $111.6B |
| Dividend Yield | 8.32% | 3.24% |
| Holdings | 55 | 206 |
| YTD Return | +6.04% | +24.55%Best |
| 1Y Return | +9.06% | +29.85%Best |
| 3Y Return (annualized) | - | +16.64% |
| 5Y Return (annualized) | - | +9.54% |
| Volatility (annualized) | 12.7%Best | 14.6% |
| Max Drawdown | -8.8% | -6.9%Best |
| $10,000 over 1 years | $10,927 | $12,788Best |
| Fund Family | Federated Hermes Funds | Charles Schwab Asset Management |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Value |
| Inception | Oct 7, 2025 | Oct 20, 2011 |
Not shown on this pair: 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).
PAYR vs SCHD 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.
PAYR vs SCHD Performance
Federated Hermes Enhanced Income ETF (PAYR) is an ETF from Federated Hermes Funds and Schwab US Dividend Equity ETF (SCHD) is an ETF from Charles Schwab Asset Management. Over the past year PAYR returned +9.06% while SCHD returned +29.85%. Year to date, PAYR is up 6.04% versus a gain of 24.55% for SCHD.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 12.7% for PAYR. 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 -8.8% for PAYR and -6.9% for SCHD. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.84. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
PAYR charges 0.40% per year while SCHD charges 0.06%. On a $10,000 position that is $40 vs $6 annually, a gap of $34 per year that compounds over a long holding period. On income, PAYR currently yields 8.32% against 3.24% for SCHD.
Holdings Overlap
At least 19.2% of SCHD's money is in holdings PAYR also owns.
Stated as a floor: for PAYR, our book for it covers 91.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
SCHD and PAYR share little of their money.
12 positions in common, counted across the 46 positions we hold weights for in PAYR and 98 in SCHD, against full books of 55 and 206.
Top Shared Holdings
| Stock | Weight in PAYR | Weight in SCHD | Difference |
|---|---|---|---|
| VZVerizon Communic | 3.49% | 3.88% | 0.39% |
| PEPPepsico Inc. | 2.47% | 3.80% | 1.33% |
| PAYXPaychex, Inc. | 3.56% | 0.81% | 2.75% |
| MOAltria Group Inc | 1.18% | 2.89% | 1.71% |
| ACNAccenture Plc | 0.91% | 3.13% | 2.22% |
| RFRegions Financia | 2.79% | 0.59% | 2.20% |
| KMBKimberly-Clark Corp. | 1.95% | 0.81% | 1.14% |
| OKEOneok | 0.86% | 1.42% | 0.56% |
| HSYHershey Co. | 1.25% | 0.60% | 0.65% |
| DRIDarden Restaurants Inc. | 1.22% | 0.58% | 0.64% |
You are not choosing between two funds in isolation.
Whichever of PAYR and SCHD 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, PAYR or SCHD?
PAYR has an expense ratio of 0.40% while SCHD charges 0.06%. SCHD is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, PAYR or SCHD?
Over the past year PAYR returned +9.06% vs +29.85% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (1 years), PAYR annualized +9.27% vs +27.88% for SCHD. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAYR or SCHD?
SCHD has been the more volatile fund at 14.6% annualized versus 12.7% for PAYR. Worst drawdown: PAYR -8.8% vs SCHD -6.9%.
Should I hold both PAYR and SCHD?
PAYR and SCHD have a monthly-return correlation of 0.84, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between PAYR and SCHD?
At least 19.2% of SCHD's money is in holdings PAYR also owns. Our book for PAYR is partial, so the real figure is this or higher. They hold 12 positions in common, counted across the 46 positions we hold weights for in PAYR and 98 in SCHD.
Which pays a higher dividend, PAYR or SCHD?
PAYR yields 8.32% while SCHD yields 3.24%, so PAYR currently pays the higher dividend yield.
Is SCHD better than PAYR?
SCHD has a lower expense ratio. SCHD led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.