PAYR vs. MKTN

Last updated Jun 4, 2026

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

Performance

PAYR vs. MKTN - Performance Comparison

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

Returns By Period

In the year-to-date period, PAYR achieves a 7.22% return, which is significantly higher than MKTN's 1.27% return.

PAYR

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

MKTN

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

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

PAYR vs. MKTN - Yearly Performance Comparison

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

Correlation

The correlation between PAYR and MKTN 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

PAYR vs. MKTN - Risk-Adjusted Trends Comparison

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

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

Drawdowns

PAYR vs. MKTN - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

Volatility by Period

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

Dividends

PAYR vs. MKTN - Dividend Comparison

PAYR's dividend yield for the trailing twelve months is around 5.47%, more than MKTN's 0.50% 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 PAYR and MKTN in my portfolio?

PAYR and MKTN 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, PAYR or MKTN?

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

What is the main difference between PAYR and MKTN?

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