I'm looking into the differences between vol swaps and var swaps and from what I understand var swaps should always provide a better payoff than a vol swap if they have the same strike.
However, when looking at an example with vol strike of 20% and realised vol of 28.4% I find that my vol swap seems to have a better payoff than my var swap.
My Var payoff is 100k(0.081-0.04)=4,089
My Vol payoff is 100k(0.284-0.2)=8,400
Am I doing something wrong or have I missed something?