MKTN vs. PAYR

Last updated Aug 4, 2026

MKTN (Federated Hermes MDT Market Neutral ETF) and PAYR (Federated Hermes Enhanced Income ETF) are both exchange-traded funds - MKTN is a Equity Market Neutral fund actively managed by Federated, while PAYR is a Derivative Income fund actively managed by Federated. Both are actively managed. Their 0.08 correlation means their historical movements had little consistent relationship. MKTN charges 1.94%/yr vs 0.40%/yr for PAYR.

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 5.83% return, which is significantly lower than PAYR's 15.33% return.

MKTN

• 1D: -0.59%
• 1M: 3.96%
• 6M: 5.85%
• YTD: 5.83%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: —

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)
MKTN Federated Hermes MDT Market Neutral ETF	$689.04K	$500.50K	$628.77K
PAYR Federated Hermes Enhanced Income ETF	$901.07K	$1.13M	$686.08K

MKTN vs. PAYR - Yearly Performance Comparison

	2026 (YTD)	2025
MKTN Federated Hermes MDT Market Neutral ETF	5.83%	6.40%
PAYR Federated Hermes Enhanced Income ETF	15.33%	3.30%

Correlation

The correlation between MKTN and PAYR is 0.08, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 8, 2025	0.08

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.

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.

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

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	-0.59%	-1.77%	+1.18%
Average Drawdown Average peak-to-trough decline	-1.08%	-1.54%	+0.46%

Volatility

Volatility by Period

	MKTN	PAYR	Difference
Volatility (1Y) Calculated over the trailing 1-year period	6.67%	11.12%	-4.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.67%	11.12%	-4.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.67%	11.12%	-4.45%

MKTN vs. PAYR - Expense Ratio Comparison

MKTN has a 1.94% expense ratio, which is higher than PAYR's 0.40% expense ratio.

Dividends

MKTN vs. PAYR - Dividend Comparison

MKTN's dividend yield for the trailing twelve months is around 0.48%, less than PAYR's 6.56% yield.

Position	TTM	2025
MKTN Federated Hermes MDT Market Neutral ETF	0.48%	0.51%
PAYR Federated Hermes Enhanced Income ETF	6.56%	1.99%

Frequently Asked Questions

Can I hold both MKTN and PAYR in my portfolio?

MKTN and PAYR have a correlation of 0.08, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, MKTN or PAYR?

On fees, PAYR is cheaper at 0.40% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, MKTN or PAYR?

PAYR is cheaper with a 0.40% expense ratio, compared with 1.94% for MKTN.

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

PAYR has the higher dividend yield at 6.56%, compared with 0.48% for MKTN.

What is the main difference between MKTN and PAYR?

MKTN is categorized as Equity Market Neutral, while PAYR is Derivative Income. Their fees differ too: 1.94% for MKTN and 0.40% for PAYR.