PAYRFederated Hermes Enhanced Income ETF
Seeks high current income with a secondary objective of capital appreciation.
By Federated · Launched 2025
0.40%
#2,016 of 5,854 · average
$41M
#3,826 of 5,854 · mid-size
—
10 months
#4,737 of 5,854 · young
Performance
Total-return NAV · USDTotal-return NAV, USD. Net of fund fees, before tax.
What's inside
How Beacon categorizes this fundWhat it actually holds
By weightConcentration
Top 10 holdings = 33.1% of fund✓ well diversified
Asset allocation
Risk profile
Last 12 months · Sharpe & Sortino need 3+ yearsWorst peak-to-trough loss
Needs 3+ years of history
Needs 3+ years of history
Listing
- Exchange
- Cboe BZX
Full fund details
- Objective
- Seeks high current income with a secondary objective of capital appreciation.
- Strategy
- Invests primarily in high dividend-paying large-cap or mid-cap stocks of U.S. issuers, along with an options overlay strategy to generate incremental income. The Adviser prioritizes stocks based on attractive combinations of dividend yield and growth potential.
- Inception date
- October 7, 2025
- Fund family
- Federated
Similar funds
Same asset class, closest by strategy & exposureOur take
Structural notes on how this fund behaves. Read our guide on the 6 warning signs.
The big yield isn't extra money
The headline distribution comes from selling call options, which caps the fund's upside. Across a full market cycle that trade costs more than it brings in — often 1 to 3 percentage points a year against just holding the index. Monthly payouts make the gap easy to miss on a return summary.
Sources: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)
Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More
What's next?
You've looked at PAYR. Save it to your watchlist to weigh it against other funds, then turn your shortlist into a portfolio.
Data updated on 2026-08-03