PAYR - ETF AI Analysis
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Federated Hermes Enhanced Income ETF (PAYR)
Rating:65Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum.
Top Holdings Mostly Performing Well
Most of the largest positions, including major financial, telecom, and energy names, have delivered strong or steady results, helping support the fund’s returns.
Broad Sector Diversification
The fund spreads its investments across several sectors such as financials, consumer defensive, utilities, health care, and energy, which can help reduce the impact of weakness in any single area.
Negative Factors
Moderate Expense Ratio
The fund’s fee level is not especially low for an income-focused ETF, which slightly reduces the net return investors keep.
Heavy U.S. Concentration
With the vast majority of assets in U.S. securities, the ETF offers limited geographic diversification and remains highly tied to the U.S. market.
Some Lagging Health Care Holdings
A few notable health care positions in the top holdings have shown weak performance, which can drag on overall returns if the trend continues.
PAYR vs. SPDR S&P 500 ETF (SPY)
AUM78.94M
RegionNorth America
Expense Ratio0.40%
Beta-0.16
IssuerFederated Hermes
Inception DateOct 07, 2025
Dividend Yield8.25%
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume14,530
30 Day Avg. Volume15,747
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
60.44Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering47
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
PAYR Summary
The Federated Hermes Enhanced Income ETF (PAYR) is an actively managed fund that focuses on U.S. and a few international companies that pay steady dividends. It doesn’t track a specific index, but instead picks a mix of sectors like financials, utilities, health care, and energy. Well-known holdings include US Bancorp and Verizon. The fund also sells options (covered calls) to try to generate extra income, making it appealing for investors seeking regular cash flow and some growth. A key risk is that the share price and income can still go up and down with the stock market, and the options strategy may limit upside in strong markets.
How much will it cost me?The Federated Hermes Enhanced Income ETF (PAYR) has an expense ratio of 0.40%, meaning you’ll pay $4 per year for every $1,000 invested. This is slightly higher than average because it’s actively managed, with strategies like covered call writing to enhance income and returns. Active management typically involves more research and trading, which increases costs.
What would affect this ETF?PAYR could benefit from stable or rising U.S. dividend-paying stocks, especially in sectors like Health Care, Utilities, and Financials, which are heavily weighted in the fund. However, economic challenges such as rising interest rates or regulatory changes in energy and financial sectors could negatively impact its performance. Additionally, the covered call strategy may limit upside potential during strong market rallies.
PAYR Top 10 Holdings
PAYR leans heavily on steady, income-rich names, with U.S. banks like US Bancorp and Regions Financial setting much of the tone—US Bancorp has been rising, while Regions has recently lost a bit of steam. Telecom giant Verizon has been a quiet workhorse, adding some positive momentum. On the flip side, healthcare holdings are a mixed bag: Pfizer is climbing again, but Medtronic and Sanofi have been lagging. Energy exposure via TotalEnergies has been a bright spot, giving this U.S.-focused, dividend-heavy fund a global flavor despite its North American base.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| US Bancorp | 3.86% | $3.16M | $87.52B | 21.08% | 76 Outperform | |
| Paychex | 3.70% | $3.03M | $36.15B | -16.57% | 77 Outperform | |
| Verizon | 3.46% | $2.83M | $190.16B | 16.31% | 81 Outperform | |
| TotalEnergies SE | 3.35% | $2.74M | €168.35B | 55.42% | 78 Outperform | |
| British American Tobacco | 3.14% | $2.57M | $116.34B | 7.92% | 59 Neutral | |
| Medtronic | 3.07% | $2.51M | $109.38B | -9.07% | 80 Outperform | |
| Enbridge | 2.83% | $2.32M | $104.41B | -3.02% | 69 Neutral | |
| Sanofi | 2.83% | $2.31M | $96.71B | -16.34% | 75 Outperform | |
| Pfizer | 2.81% | $2.30M | $159.59B | 10.22% | 74 Outperform | |
| Regions Financial | 2.74% | $2.24M | $22.75B | 6.95% | 79 Outperform |
PAYR Technical Analysis
Neutral
―
Price Trends
54.30
Negative
53.59
Negative
52.29
Positive
Market Momentum
-0.68
Positive
40.51
Neutral
42.81
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PAYR, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 53.09, equal to the 50-day MA of 54.30, and equal to the 200-day MA of 52.29, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 42.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PAYR.
PAYR Peer Comparison
Comparison Results
Performance Comparison
PAYR
Federated Hermes Enhanced Income ETF
52.68
7.03
15.40%
HQDG
Raub Brock Dividend Growth ETF
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FDIV
MarketDesk Focused U.S. Dividend ETF
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DIVY
Sound Equity Income ETF
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―
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VUS
Virtus US Dividend ETF
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JHDV
John Hancock U.S. High Dividend ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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