PAYR vs. IVVW

Last updated Jul 14, 2026

PAYR (Federated Hermes Enhanced Income ETF) and IVVW (iShares S&P 500 BuyWrite ETF) are both Derivative Income funds. PAYR is actively managed, while IVVW is passively managed. At a 0.10 correlation, their price movements are largely independent. PAYR charges 0.40%/yr vs 0.25%/yr for IVVW.

Performance

PAYR vs. IVVW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Enhanced Income ETF (PAYR) and iShares S&P 500 BuyWrite ETF (IVVW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAYR achieves a 12.71% return, which is significantly higher than IVVW's 6.45% return.

PAYR

• 1D: 0.78%
• 1M: 0.88%
• 6M: 12.10%
• YTD: 12.71%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

IVVW

• 1D: -0.45%
• 1M: 1.92%
• 6M: 5.75%
• YTD: 6.45%
• 1Y: 17.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PAYR vs. IVVW - Yearly Performance Comparison

	2026 (YTD)	2025
PAYR Federated Hermes Enhanced Income ETF	12.71%	3.30%
IVVW iShares S&P 500 BuyWrite ETF	6.45%	5.13%

Correlation

The correlation between PAYR and IVVW is 0.10, 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 8, 2025	0.10

Return for Risk

PAYR vs. IVVW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PAYR

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

IVVW

IVVW Risk / Return Rank: 86
IVVW Sharpe Ratio Rank: 86
IVVW Sortino Ratio Rank: 85
IVVW Omega Ratio Rank: 91
IVVW Calmar Ratio Rank: 76
IVVW Martin Ratio Rank: 91

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PAYR vs. IVVW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Enhanced Income ETF (PAYR) and iShares S&P 500 BuyWrite ETF (IVVW). 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.

	PAYR	IVVW	Difference
Sharpe ratio: Return per unit of total volatility	—	2.20	—
Sortino ratio: Return per unit of downside risk	—	3.03	—
Omega ratio: Gain probability vs. loss probability	—	1.47	—
Calmar ratio: Return relative to maximum drawdown	—	3.09	—
Martin ratio: Return relative to average drawdown	—	16.40	—

Drawdowns

PAYR vs. IVVW - Drawdown Comparison

The maximum PAYR drawdown since its inception was -5.24%, smaller than the maximum IVVW drawdown of -16.79%. Use the drawdown chart below to compare losses from any high point for PAYR and IVVW.

Drawdown Indicators

	PAYR	IVVW	Difference
Max Drawdown Largest peak-to-trough decline	-5.24%	-16.79%	+11.55%
Max Drawdown (1Y) Largest decline over 1 year	—	-5.81%	—
Current Drawdown Current decline from peak	-0.41%	-0.45%	+0.04%
Average Drawdown Average peak-to-trough decline	-1.60%	-1.70%	+0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.09%	—

Volatility

Volatility by Period

	PAYR	IVVW	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.98%	—
Volatility (6M) Calculated over the trailing 6-month period	—	7.07%	—
Volatility (1Y) Calculated over the trailing 1-year period	10.89%	8.18%	+2.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.89%	12.60%	-1.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.89%	12.60%	-1.71%

PAYR vs. IVVW - Expense Ratio Comparison

PAYR has a 0.40% expense ratio, which is higher than IVVW's 0.25% expense ratio.

Dividends

PAYR vs. IVVW - Dividend Comparison

PAYR's dividend yield for the trailing twelve months is around 6.08%, less than IVVW's 19.13% yield.

Position	TTM	2025	2024
IVVW iShares S&P 500 BuyWrite ETF	19.13%	18.55%	13.72%
PAYR Federated Hermes Enhanced Income ETF	6.08%	1.99%	0.00%

Frequently Asked Questions

Can I hold both PAYR and IVVW in my portfolio?

PAYR and IVVW have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, PAYR or IVVW?

On fees, IVVW is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, PAYR or IVVW?

IVVW is cheaper with a 0.25% expense ratio, compared with 0.40% for PAYR.

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

IVVW has the higher dividend yield at 19.13%, compared with 6.08% for PAYR.

What is the main difference between PAYR and IVVW?

They also come from different issuers: Federated Hermes and iShares. Their fees differ too: 0.40% for PAYR and 0.25% for IVVW.