PAYR vs. TSMY

Last updated Jun 25, 2026

PAYR (Federated Hermes Enhanced Income ETF) and TSMY (YieldMax TSM Option Income Strategy ETF) are both Derivative Income funds. Both are actively managed. At a correlation of -0.11, they often move in opposite directions. PAYR charges 0.40%/yr vs 0.99%/yr for TSMY.

Performance

PAYR vs. TSMY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Enhanced Income ETF (PAYR) and YieldMax TSM Option Income Strategy ETF (TSMY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAYR achieves a 10.01% return, which is significantly lower than TSMY's 37.92% return.

PAYR

• 1D: -0.09%
• 1M: -0.45%
• YTD: 10.01%
• 6M: 9.75%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

TSMY

• 1D: 1.49%
• 1M: 7.51%
• YTD: 37.92%
• 6M: 40.03%
• 1Y: 79.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

PAYR vs. TSMY - Yearly Performance Comparison

	2026 (YTD)	2025
PAYR Federated Hermes Enhanced Income ETF	10.01%	3.30%
TSMY YieldMax TSM Option Income Strategy ETF	37.92%	3.46%

Correlation

The correlation between PAYR and TSMY is -0.11, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (All Time) Calculated using the full available price history since Oct 8, 2025	-0.11

Return for Risk

PAYR vs. TSMY — 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.

TSMY

TSMY Risk / Return Rank: 85
TSMY Sharpe Ratio Rank: 88
TSMY Sortino Ratio Rank: 79
TSMY Omega Ratio Rank: 79
TSMY Calmar Ratio Rank: 91
TSMY Martin Ratio Rank: 90

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. TSMY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Enhanced Income ETF (PAYR) and YieldMax TSM Option Income Strategy ETF (TSMY). 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	TSMY	Difference
Sharpe ratio: Return per unit of total volatility	—	2.57	—
Sortino ratio: Return per unit of downside risk	—	3.14	—
Omega ratio: Gain probability vs. loss probability	—	1.42	—
Calmar ratio: Return relative to maximum drawdown	—	5.15	—
Martin ratio: Return relative to average drawdown	—	18.62	—

Drawdowns

PAYR vs. TSMY - Drawdown Comparison

The maximum PAYR drawdown since its inception was -5.24%, smaller than the maximum TSMY drawdown of -31.15%. Use the drawdown chart below to compare losses from any high point for PAYR and TSMY.

Drawdown Indicators

	PAYR	TSMY	Difference
Max Drawdown Largest peak-to-trough decline	-5.24%	-31.15%	+25.91%
Max Drawdown (1Y) Largest decline over 1 year	—	-15.50%	—
Current Drawdown Current decline from peak	-2.28%	-4.49%	+2.21%
Average Drawdown Average peak-to-trough decline	-1.65%	-5.44%	+3.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	4.28%	—

Volatility

Volatility by Period

	PAYR	TSMY	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	13.62%	—
Volatility (6M) Calculated over the trailing 6-month period	—	25.04%	—
Volatility (1Y) Calculated over the trailing 1-year period	10.46%	31.17%	-20.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.46%	33.92%	-23.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.46%	33.92%	-23.46%

PAYR vs. TSMY - Expense Ratio Comparison

PAYR has a 0.40% expense ratio, which is lower than TSMY's 0.99% expense ratio.

Dividends

PAYR vs. TSMY - Dividend Comparison

PAYR's dividend yield for the trailing twelve months is around 5.33%, less than TSMY's 50.28% yield.

Position	TTM	2025	2024
PAYR Federated Hermes Enhanced Income ETF	5.33%	1.99%	0.00%
TSMY YieldMax TSM Option Income Strategy ETF	50.28%	56.76%	13.71%

Frequently Asked Questions

Can I hold both PAYR and TSMY in my portfolio?

PAYR and TSMY have a correlation of -0.11, 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 TSMY?

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, PAYR or TSMY?

PAYR is cheaper with a 0.40% expense ratio, compared with 0.99% for TSMY.

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

TSMY has the higher dividend yield at 50.28%, compared with 5.33% for PAYR.

What is the main difference between PAYR and TSMY?

They also come from different issuers: Federated Hermes and YieldMax. Their fees differ too: 0.40% for PAYR and 0.99% for TSMY.