PAYRFederated Hermes Enhanced Income ETF
Seeks high current income with a secondary objective of capital appreciation.
By Federated · Launched 2025
0.40%
#2,058 of 5,562 · average
$39M
#3,804 of 5,562 · small
—
8 months
#4,841 of 5,562 · young
Performance
Total-return NAV · USDTotal-return NAV, USD. Net of fund fees, before tax.
Classification
How Beacon categorizes this fundWhat it actually holds
By weightConcentration
Top 10 holdings = 34.3% 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
Where to buy
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 and mid-cap U.S. stocks, with potential foreign holdings and REITs. Uses an options overlay strategy to generate additional income by selling call options on ETFs, aiming to enhance distributions while managing volatility.
- Inception date
- October 7, 2025
- Fund family
- Federated
Similar ETFs
Closest matches by profileOur take
Structural notes on how this fund behaves. Read our guide on the 6 warning signs.
Covered call ETF — yield ≠ total return
The high distribution yield is not free income — it comes from selling upside via call options. Research finds these strategies systematically underperform their underlying index over full cycles, typically by 100–300 basis points per year depending on the option-overlay design. The monthly distributions make the shortfall hard to see in return summaries.
Source: Israelov & Ndong, 'A Devil's Bargain: When Generating Income Undermines Investment Returns' (NDVR, 2023)
Why we flagged this: strategy=option_income + option_income_strategy
Educational analysis of structural product characteristics. Not investment advice. Always read the fund prospectus and consult a qualified advisor before investing. More
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Data updated on 2026-06-19