FCSH vs. PAYR

Last updated Aug 4, 2026

FCSH (Federated Hermes Short Duration Corporate ETF) and PAYR (Federated Hermes Enhanced Income ETF) are both exchange-traded funds - FCSH is a Short-Term Bond fund actively managed by Federated, while PAYR is a Derivative Income fund actively managed by Federated. Both are actively managed. Their 0.12 correlation means their historical movements had little consistent relationship. FCSH charges 0.30%/yr vs 0.40%/yr for PAYR.

Performance

FCSH vs. PAYR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Short Duration Corporate ETF (FCSH) and Federated Hermes Enhanced Income ETF (PAYR). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCSH achieves a 0.65% return, which is significantly lower than PAYR's 15.33% return.

FCSH

• 1D: 0.17%
• 1M: -0.14%
• 6M: 0.41%
• YTD: 0.65%
• 1Y: 2.76%
• 3Y*: 5.00%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 2.35%

PAYR

• 1D: -0.05%
• 1M: 1.91%
• 6M: 8.77%
• YTD: 15.33%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FCSH Federated Hermes Short Duration Corporate ETF	$23.61K	$21.88K	$31.43K
PAYR Federated Hermes Enhanced Income ETF	$901.07K	$1.13M	$686.08K

FCSH vs. PAYR - Yearly Performance Comparison

	2026 (YTD)	2025
FCSH Federated Hermes Short Duration Corporate ETF	0.65%	0.95%
PAYR Federated Hermes Enhanced Income ETF	15.33%	3.30%

Correlation

The correlation between FCSH and PAYR is 0.12, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 8, 2025	0.12

Return for Risk

FCSH vs. PAYR — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FCSH

FCSH Risk / Return Rank: 57
FCSH Sharpe Ratio Rank: 56
FCSH Sortino Ratio Rank: 59
FCSH Omega Ratio Rank: 57
FCSH Calmar Ratio Rank: 59
FCSH Martin Ratio Rank: 52

PAYR

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FCSH vs. PAYR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Short Duration Corporate ETF (FCSH) and Federated Hermes Enhanced Income ETF (PAYR). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FCSH	PAYR	Difference
Sharpe ratio: Return per unit of total volatility	1.44	—	—
Sortino ratio: Return per unit of downside risk	2.14	—	—
Omega ratio: Gain probability vs. loss probability	1.27	—	—
Calmar ratio: Return relative to maximum drawdown	2.23	—	—
Martin ratio: Return relative to average drawdown	6.53	—	—

Drawdowns

FCSH vs. PAYR - Drawdown Comparison

The maximum FCSH drawdown since its inception was -8.47%, which is greater than PAYR's maximum drawdown of -5.24%. Use the drawdown chart below to compare losses from any high point for FCSH and PAYR.

Drawdown Indicators

	FCSH	PAYR	Difference
Max Drawdown Largest peak-to-trough decline	-8.47%	-5.24%	-3.23%
Max Drawdown (1Y) Largest decline over 1 year	-1.24%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-1.32%	—	—
Current Drawdown Current decline from peak	-0.49%	-1.77%	+1.28%
Average Drawdown Average peak-to-trough decline	-2.15%	-1.54%	-0.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.42%	—	—

Volatility

Volatility by Period

	FCSH	PAYR	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.52%	—	—
Volatility (6M) Calculated over the trailing 6-month period	1.65%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	1.93%	11.12%	-9.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.87%	11.12%	-8.25%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.87%	11.12%	-8.25%

FCSH vs. PAYR - Expense Ratio Comparison

FCSH has a 0.30% expense ratio, which is lower than PAYR's 0.40% expense ratio.

Dividends

FCSH vs. PAYR - Dividend Comparison

FCSH's dividend yield for the trailing twelve months is around 4.23%, less than PAYR's 6.56% yield.

Position	TTM	2025	2024	2023	2022	2021
FCSH Federated Hermes Short Duration Corporate ETF	4.23%	4.14%	4.44%	2.31%	1.76%	0.04%
PAYR Federated Hermes Enhanced Income ETF	6.56%	1.99%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FCSH and PAYR in my portfolio?

FCSH and PAYR have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FCSH or PAYR?

On fees, FCSH is cheaper at 0.30% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FCSH or PAYR?

FCSH is cheaper with a 0.30% expense ratio, compared with 0.40% for PAYR.

Which ETF pays a higher dividend yield, FCSH or PAYR?

PAYR has the higher dividend yield at 6.56%, compared with 4.23% for FCSH.

What is the main difference between FCSH and PAYR?

FCSH is categorized as Short-Term Bond, while PAYR is Derivative Income. Their fees differ too: 0.30% for FCSH and 0.40% for PAYR.