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PAYR - ETF AI Analysis
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Federated Hermes Enhanced Income ETF (PAYR)
Rating:65Neutral
Price Target:―
Positive Factors
Strong Top Holdings
Several of the ETF's largest positions, like National Grid Transco and Prologis, have delivered strong year-to-date gains, supporting overall performance.
Sector Diversification
The fund is spread across multiple sectors, including Health Care, Utilities, and Financials, which helps reduce risk from sector-specific downturns.
Reasonable Expense Ratio
With an expense ratio of 0.4%, the ETF offers relatively low costs compared to many actively managed funds.
Negative Factors
Underperforming Holdings
Some top holdings, such as PNC Financial and US Bancorp, have lagged in performance, which may drag on the fund's returns.
High U.S. Concentration
The ETF is heavily focused on U.S. companies, with over 86% exposure, limiting diversification across global markets.
Weak Year-to-Date Performance
The fund has posted negative year-to-date returns, which may concern investors looking for stronger short-term results.
PAYR vs. SPDR S&P 500 ETF (SPY)
AUM8.89M
RegionNorth America
Expense Ratio0.40%
Beta0.03
IssuerFederated Hermes
Inception DateOct 07, 2025
Dividend YieldN/A
Asset ClassEquity
Index TrackedNo Underlying Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume6,002
30 Day Avg. Volume6,875
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
55.64Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering50
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. dividend-paying stocks, aiming to provide high income and growth potential. It uses a covered call strategy to generate extra income, making it appealing for investors seeking consistent dividends. The ETF includes well-known companies like Chevron and Exxon Mobil, and it spans sectors such as health care, utilities, and financials. This fund might be a good choice for those looking to diversify their portfolio while earning steady income. However, new investors should note that its performance can fluctuate with the stock market and is heavily reliant on dividend-paying companies.
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
The Federated Hermes Enhanced Income ETF (PAYR) leans heavily into U.S. dividend-paying stocks, with a notable focus on energy, utilities, and healthcare sectors. Chevron and Exxon Mobil are steady performers, buoyed by strong operational growth and robust dividends, while Prologis has been rising thanks to record leasing activity and expansion efforts. On the flip side, PNC Financial and Enbridge are lagging, facing bearish momentum and sector-specific challenges. With its covered call strategy, the fund balances income generation with growth, but its sector concentration could make it sensitive to shifts in energy and financial markets.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Amgen | 3.59% | $333.26K | $185.54B | 23.03% | 77 Outperform | |
| TotalEnergies | 3.56% | $330.56K | $141.88B | 14.62% | 77 Outperform | |
| PNC Financial | 3.34% | $310.84K | $75.25B | -10.75% | 77 Outperform | |
| Enbridge | 3.28% | $305.34K | $104.87B | 11.98% | 72 Outperform | |
| US Bancorp | 3.24% | $301.24K | $76.09B | -8.47% | 75 Outperform | |
| National Grid Transco | 3.16% | $293.47K | $74.63B | 19.23% | 74 Outperform | |
| Chevron | 3.12% | $289.93K | $301.04B | -7.77% | 74 Outperform | |
| Truist Financial | 3.03% | $281.76K | $59.15B | -3.16% | 65 Neutral | |
| Sanofi | 3.03% | $281.32K | $122.04B | 2.69% | 75 Outperform | |
| Prologis | 2.89% | $268.79K | $121.87B | 8.79% | 79 Outperform |
PAYR Technical Analysis
Positive
―
Price Trends
Market Momentum
0.33
Negative
66.58
Neutral
62.90
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For PAYR, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 50.07, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 62.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAYR.
PAYR Peer Comparison
Comparison Results
Performance Comparison
PAYR
Federated Hermes Enhanced Income ETF
51.24
1.85
3.75%
FDV
Federated Hermes U.S. Strategic Dividend ETF
―
―
―
FDIV
MarketDesk Focused U.S. Dividend ETF
―
―
―
DIVY
Sound Equity Income ETF
―
―
―
JHDV
John Hancock U.S. High Dividend ETF
―
―
―
GEND
Genter Capital Dividend Income ETF
―
―
―
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.
Disclaimer
This 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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