PAYR vs. PAPI

Last updated Jun 4, 2026

PAYR (Federated Hermes Enhanced Income ETF) and PAPI (Parametric Equity Premium Income ETF) are both Derivative Income funds. Both are actively managed. A 0.68 correlation means they provide meaningful diversification when combined. PAYR charges 0.40%/yr vs 0.29%/yr for PAPI.

Performance

PAYR vs. PAPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Enhanced Income ETF (PAYR) and Parametric Equity Premium Income ETF (PAPI). 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 PAPI's 5.81% return.

PAYR

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

PAPI

• 1D: -0.26%
• 1M: 0.28%
• YTD: 5.81%
• 6M: 5.78%
• 1Y: 12.39%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PAYR vs. PAPI - Yearly Performance Comparison

	2026 (YTD)	2025
PAYR Federated Hermes Enhanced Income ETF	7.22%	3.73%
PAPI Parametric Equity Premium Income ETF	5.81%	1.02%

Correlation

The correlation between PAYR and PAPI is 0.68, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 9, 2025	0.68

Return for Risk

PAYR vs. PAPI — Risk / Return Rank

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

PAPI

PAPI Risk / Return Rank: 33
PAPI Sharpe Ratio Rank: 32
PAPI Sortino Ratio Rank: 34
PAPI Omega Ratio Rank: 30
PAPI Calmar Ratio Rank: 37
PAPI Martin Ratio Rank: 33

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. PAPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Enhanced Income ETF (PAYR) and Parametric Equity Premium Income ETF (PAPI). 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	PAPI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.19	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.84	0.88	+0.97

Drawdowns

PAYR vs. PAPI - Drawdown Comparison

The maximum PAYR drawdown since its inception was -5.24%, smaller than the maximum PAPI drawdown of -14.27%. Use the drawdown chart below to compare losses from any high point for PAYR and PAPI.

Drawdown Indicators

	PAYR	PAPI	Difference
Max Drawdown Largest peak-to-trough decline	-5.24%	-14.27%	+9.03%
Max Drawdown (1Y) Largest decline over 1 year	—	-6.86%	—
Current Drawdown Current decline from peak	-4.76%	-5.06%	+0.30%
Average Drawdown Average peak-to-trough decline	-1.59%	-2.73%	+1.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.53%	—

Volatility

Volatility by Period

	PAYR	PAPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.23%	—
Volatility (6M) Calculated over the trailing 6-month period	—	7.00%	—
Volatility (1Y) Calculated over the trailing 1-year period	9.73%	10.55%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.73%	11.76%	-2.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.73%	11.76%	-2.03%

PAYR vs. PAPI - Expense Ratio Comparison

PAYR has a 0.40% expense ratio, which is higher than PAPI's 0.29% expense ratio.

Dividends

PAYR vs. PAPI - Dividend Comparison

PAYR's dividend yield for the trailing twelve months is around 5.47%, less than PAPI's 7.62% yield.

Position	TTM	2025	2024	2023
PAPI Parametric Equity Premium Income ETF	7.62%	7.59%	7.07%	1.45%
PAYR Federated Hermes Enhanced Income ETF	5.47%	1.99%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PAYR and PAPI in my portfolio?

PAYR and PAPI have a correlation of 0.68, 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 PAPI?

On fees, PAPI is cheaper at 0.29% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, PAYR or PAPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.40% for PAYR.

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

PAPI has the higher dividend yield at 7.62%, compared with 5.47% for PAYR.

What is the main difference between PAYR and PAPI?

They also come from different issuers: Federated Hermes and Morgan Stanley. Their fees differ too: 0.40% for PAYR and 0.29% for PAPI.