PAYR vs VYM
Federated Hermes Enhanced Income ETF vs Vanguard High Dividend Yield ETF
Which is better, PAYR or VYM?
Allocation/Balanced against Large Cap Value.
VYM has a lower expense ratio. VYM 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 | VYM |
|---|---|---|
| Expense Ratio | 0.40% | 0.04%Best |
| AUM | $82M | $78.9B |
| Dividend Yield | 8.32% | 2.37% |
| Holdings | 55 | 608 |
| YTD Return | +6.04% | +11.83%Best |
| 1Y Return | +9.06% | +15.96%Best |
| 3Y Return (annualized) | - | +18.60% |
| 5Y Return (annualized) | - | +11.51% |
| Volatility (annualized) | 12.7% | 11.2%Best |
| Max Drawdown | -8.8% | -6.7%Best |
| $10,000 over 1 years | $10,927 | $11,511Best |
| Fund Family | Federated Hermes Funds | Vanguard (US) |
| Category | Allocation/Balanced | Equity |
| Style | Allocation/Balanced | Large Cap Value |
| Inception | Oct 7, 2025 | Nov 10, 2006 |
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 VYM 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 VYM Performance
Federated Hermes Enhanced Income ETF (PAYR) is an ETF from Federated Hermes Funds and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year PAYR returned +9.06% while VYM returned +15.96%. Year to date, PAYR is up 6.04% versus a gain of 11.83% for VYM.
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 11.2% for VYM. 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 -6.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.79. They usually move together, but the gap leaves some room for diversification.
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 8.32% against 2.37% for VYM.
Holdings Overlap
At least 10.5% of VYM'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.
VYM and PAYR share little of their money.
30 positions in common, counted across the 46 positions we hold weights for in PAYR and 602 in VYM, against full books of 55 and 608.
Top Shared Holdings
| Stock | Weight in PAYR | Weight in VYM | Difference |
|---|---|---|---|
| USBUS Bancorp | 3.96% | 0.39% | 3.57% |
| VZVerizon Communic | 3.49% | 0.84% | 2.65% |
| PAYXPaychex, Inc. | 3.56% | 0.17% | 3.39% |
| ABBVAbbvie Inc. | 1.81% | 1.83% | 0.02% |
| PFEPfizer Inc | 2.86% | 0.65% | 2.21% |
| PEPPepsico Inc. | 2.47% | 0.77% | 1.70% |
| PMPhilip Morris International Inc. | 2.05% | 1.18% | 0.87% |
| PNCPnc Financial Services Group Inc. | 2.56% | 0.39% | 2.17% |
| RFRegions Financia | 2.79% | 0.10% | 2.69% |
| CMEC M E Group Inc. | 2.41% | 0.42% | 1.99% |
You are not choosing between two funds in isolation.
Whichever of PAYR and VYM 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 VYM?
PAYR has an expense ratio of 0.40% while VYM charges 0.04%. VYM is the cheaper option, by $36 a year on a $10,000 investment.
Which performed better, PAYR or VYM?
Over the past year PAYR returned +9.06% vs +15.96% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (1 years), PAYR annualized +9.27% vs +15.11% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, PAYR or VYM?
PAYR has been the more volatile fund at 12.7% annualized versus 11.2% for VYM. Worst drawdown: PAYR -8.8% vs VYM -6.7%.
Should I hold both PAYR and VYM?
PAYR and VYM have a monthly-return correlation of 0.79, 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 VYM?
At least 10.5% of VYM's money is in holdings PAYR also owns. Our book for PAYR is partial, so the real figure is this or higher. They hold 30 positions in common, counted across the 46 positions we hold weights for in PAYR and 602 in VYM.
Which pays a higher dividend, PAYR or VYM?
PAYR yields 8.32% while VYM yields 2.37%, so PAYR currently pays the higher dividend yield.
Is VYM better than PAYR?
VYM has a lower expense ratio. VYM 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.