Frequently Asked Questions About PAYR

What does PAYR invest in?

PAYR actively invests in a portfolio of high dividend-paying US stocks. It will focus on large-cap and mid-cap securities with yields exceeding the average dividend yield of the S&P 500 Index. This includes securities with potential for dividend growth, evaluated through factors such as balance sheet strength, earnings growth, and cash flow durability. This strategy aims to identify companies that may sustain and grow dividends over time. The portfolio may include foreign stocks, depositary receipts, and REITs. In addition to dividends received, the fund aims to generate additional income by writing covered call options against passive ETFs. It will only invest in listed options contracts, including FLEX options. The portfolio uses U.S. Treasuries as collateral for its options strategy.

What is the expense ratio of PAYR?

Federated Hermes ETF Trust - Federated Hermes Enhanced Income ETF (PAYR) charges an expense ratio of 0.74%. This is the annual fee deducted from fund assets to cover management and operations.

What is PAYR's distribution yield?

PAYR's trailing-twelve-month yield is 7.12%, calculated from the sum of distributions over the past year divided by the current price.

How does PAYR's covered-call strategy work?

PAYR sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is PAYR?

Federated Hermes ETF Trust - Federated Hermes Enhanced Income ETF (PAYR) manages $74.0M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is PAYR actively managed or an index fund?

PAYR's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.

PAYR

Federated Hermes ETF Trust - Federated Hermes Enhanced Income ETF

CBOE·Asset Management · Financial Services

$55.62$0.57+1.03%

Sep 14 2:15 PM UTC

Price Chart

$55.62+$0.57 (+1.03%)today

+11.81%

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FromTo

Oct 8, 2025Oct 8, 2025 → Sep 14, 2026· 11 moSep 14, 2026

Key Metrics

DistributionDistributions Tab

Annual Distribution (FWD)$3.80

Distribution Yield (FWD)6.83%

Annual Distribution (TTM)$3.96

Distribution Yield (TTM)7.12%

Distribution Growth (5Y)—

FrequencyMonthly

Most Recent$0.32

Ex-Dividend DateAug 31

Payment DateSep 1

DiversificationDiversification Tab

Holdings46

Top 10 Weight33.6%

Top 25 Weight69.4%

Effective Holdings39

Sectors11

Largest HoldingUSB · 4.2%

Largest SectorFinancial Services · 16.5%

Asset ClassEquity

StrategyOptions Income

Cost & RiskExpenses Tab

Expense Ratio0.74%

Cost per 10k Invested$74.00

AUM$74.00M

Avg Daily Volume13.60K

Price$55.62

NAV$54.81

Premium / Discount+1.47%

52-Week Range—

Beta0.01

Fund Overview

Cost Verdict

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Issuer: Federated Hermes
Asset Class: Equity
Strategy: Options Income
Inception: October 7, 2025
Fund Type: ETF
Domicile: US
Currency: USD
ISIN: US31423L8836
CUSIP: 31423L883
Website: www.federatedhermes.com/funds/exchange-traded-funds/enhanced-income-etf

Latest News

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Frequently Asked Questions About PAYR

What does PAYR invest in?: PAYR actively invests in a portfolio of high dividend-paying US stocks. It will focus on large-cap and mid-cap securities with yields exceeding the average dividend yield of the S&P 500 Index. This includes securities with potential for dividend growth, evaluated through factors such as balance sheet strength, earnings growth, and cash flow durability. This strategy aims to identify companies that may sustain and grow dividends over time. The portfolio may include foreign stocks, depositary receipts, and REITs. In addition to dividends received, the fund aims to generate additional income by writing covered call options against passive ETFs. It will only invest in listed options contracts, including FLEX options. The portfolio uses U.S. Treasuries as collateral for its options strategy.
What is the expense ratio of PAYR?: Federated Hermes ETF Trust - Federated Hermes Enhanced Income ETF (PAYR) charges an expense ratio of 0.74%. This is the annual fee deducted from fund assets to cover management and operations.
What is PAYR's distribution yield?: PAYR's trailing-twelve-month yield is 7.12%, calculated from the sum of distributions over the past year divided by the current price.
How does PAYR's covered-call strategy work?: PAYR sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.
How big is PAYR?: Federated Hermes ETF Trust - Federated Hermes Enhanced Income ETF (PAYR) manages $74.0M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.
Is PAYR actively managed or an index fund?: PAYR's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.