PAYR vs VOO
Federated Hermes Enhanced Income ETF vs Vanguard S&P 500 ETF
Which is better, PAYR or VOO?
Allocation/Balanced against Large Cap Blend.
VOO has a lower expense ratio. VOO 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 | VOO |
|---|---|---|
| Expense Ratio | 0.40% | 0.03%Best |
| AUM | $82M | $1.0T |
| Dividend Yield | 8.32% | 1.06% |
| Holdings | 55 | 506 |
| YTD Return | +6.04% | +13.57%Best |
| 1Y Return | +9.06% | +17.55%Best |
| 3Y Return (annualized) | - | +22.46% |
| 5Y Return (annualized) | - | +13.28% |
| Volatility (annualized) | 12.7%Best | 13.2% |
| Max Drawdown | -8.8%Best | -8.9% |
| $10,000 over 1 years | $10,927 | $11,539Best |
| Fund Family | Federated Hermes Funds | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Blend |
| Inception | Oct 7, 2025 | Sep 7, 2010 |
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 VOO 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 VOO Performance
Federated Hermes Enhanced Income ETF (PAYR) is an ETF from Federated Hermes Funds and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year PAYR returned +9.06% while VOO returned +17.55%. Year to date, PAYR is up 6.04% versus a gain of 13.57% for VOO.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 13.2% 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 -8.9% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.07. They move largely independently of each other.
Fees and Cost Over Time
PAYR charges 0.40% per year while VOO charges 0.03%. On a $10,000 position that is $40 vs $3 annually, a gap of $37 per year that compounds over a long holding period. On income, PAYR currently yields 8.32% against 1.06% for VOO.
Holdings Overlap
At least 4.3% of VOO'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.
VOO and PAYR share little of their money.
32 positions in common, counted across the 46 positions we hold weights for in PAYR and 504 in VOO, against full books of 55 and 506.
Top Shared Holdings
| Stock | Weight in PAYR | Weight in VOO | Difference |
|---|---|---|---|
| USBUS Bancorp | 3.96% | 0.14% | 3.82% |
| VZVerizon Communic | 3.49% | 0.32% | 3.17% |
| PAYXPaychex, Inc. | 3.56% | 0.06% | 3.50% |
| PFEPfizer Inc | 2.86% | 0.25% | 2.61% |
| PLDPrologis Inc | 2.66% | 0.20% | 2.46% |
| RFRegions Financia | 2.79% | 0.04% | 2.75% |
| PEPPepsico Inc. | 2.47% | 0.29% | 2.18% |
| PNCPnc Financial Services Group Inc. | 2.56% | 0.15% | 2.41% |
| KIMKimco Realty Corp. | 2.63% | 0.02% | 2.61% |
| FEFirstenergy Corp | 2.58% | 0.04% | 2.54% |
You are not choosing between two funds in isolation.
Whichever of PAYR and VOO 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 VOO?
PAYR has an expense ratio of 0.40% while VOO charges 0.03%. VOO is the cheaper option, by $37 a year on a $10,000 investment.
Which performed better, PAYR or VOO?
Over the past year PAYR returned +9.06% vs +17.55% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (1 years), PAYR annualized +9.27% vs +15.39% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAYR or VOO?
VOO has been the more volatile fund at 13.2% annualized versus 12.7% for PAYR. Worst drawdown: PAYR -8.8% vs VOO -8.9%.
Should I hold both PAYR and VOO?
PAYR and VOO have a monthly-return correlation of 0.07, 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 VOO?
At least 4.3% of VOO's money is in holdings PAYR also owns. Our book for PAYR is partial, so the real figure is this or higher. They hold 32 positions in common, counted across the 46 positions we hold weights for in PAYR and 504 in VOO.
Which pays a higher dividend, PAYR or VOO?
PAYR yields 8.32% while VOO yields 1.06%, so PAYR currently pays the higher dividend yield.
Is VOO better than PAYR?
VOO has a lower expense ratio. VOO 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.