MKTN vs. PAYR

Last updated Jun 4, 2026

MKTN (Federated Hermes MDT Market Neutral ETF) and PAYR (Federated Hermes Enhanced Income ETF) are both exchange-traded funds - MKTN is a Long-Short fund actively managed by Federated Hermes, while PAYR is a Derivative Income fund actively managed by Federated Hermes. Both are actively managed. At a 0.05 correlation, their price movements are largely independent.

Performance

MKTN vs. PAYR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes MDT Market Neutral ETF (MKTN) 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, MKTN achieves a 1.27% return, which is significantly lower than PAYR's 7.22% return.

MKTN

• 1D: 0.12%
• 1M: 1.01%
• YTD: 1.27%
• 6M: 4.04%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

PAYR

• 1D: -0.02%
• 1M: -0.97%
• YTD: 7.22%
• 6M: 7.83%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MKTN vs. PAYR - Yearly Performance Comparison

	2026 (YTD)	2025
MKTN Federated Hermes MDT Market Neutral ETF	1.27%	6.31%
PAYR Federated Hermes Enhanced Income ETF	7.22%	3.73%

Correlation

The correlation between MKTN and PAYR is 0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 9, 2025	0.05

Return for Risk

MKTN vs. PAYR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes MDT Market Neutral ETF (MKTN) 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.

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

Sharpe Ratios by Period

	MKTN	PAYR	Difference
Sharpe Ratio (All Time) Calculated using the full available price history	1.06	1.84	-0.78

Drawdowns

MKTN vs. PAYR - Drawdown Comparison

The maximum MKTN drawdown since its inception was -4.13%, smaller than the maximum PAYR drawdown of -5.24%. Use the drawdown chart below to compare losses from any high point for MKTN and PAYR.

Drawdown Indicators

	MKTN	PAYR	Difference
Max Drawdown Largest peak-to-trough decline	-4.13%	-5.24%	+1.11%
Current Drawdown Current decline from peak	-0.65%	-4.76%	+4.11%
Average Drawdown Average peak-to-trough decline	-1.13%	-1.59%	+0.46%

Volatility

Volatility by Period

	MKTN	PAYR	Difference
Volatility (1Y) Calculated over the trailing 1-year period	6.81%	9.73%	-2.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.81%	9.73%	-2.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.81%	9.73%	-2.92%

Dividends

MKTN vs. PAYR - Dividend Comparison

MKTN's dividend yield for the trailing twelve months is around 0.50%, less than PAYR's 5.47% yield.

Position	TTM	2025
MKTN Federated Hermes MDT Market Neutral ETF	0.50%	0.51%
PAYR Federated Hermes Enhanced Income ETF	5.47%	1.99%

Frequently Asked Questions

Can I hold both MKTN and PAYR in my portfolio?

MKTN and PAYR have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

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

PAYR has the higher dividend yield at 5.47%, compared with 0.50% for MKTN.

What is the main difference between MKTN and PAYR?

MKTN is categorized as Long-Short, while PAYR is Derivative Income.