Federated Hermes ETF Trust (FSCC)

Overview

Federated Hermes ETF Trust offers a variety of actively managed ETFs focusing on different investment strategies and asset classes, including income, equity, and ESG-focused approaches. They aim to provide investors with specific investment outcomes through active management.

Reputation and Reliability

Federated Hermes is a well-established asset management firm with a long history in the investment industry. They are known for their active management capabilities and commitment to responsible investing.

Management Expertise

Federated Hermes has a team of experienced portfolio managers and analysts dedicated to each ETF, leveraging their expertise to achieve the stated investment objectives.

Goal

The primary investment goal varies depending on the specific Federated Hermes ETF, such as maximizing income, achieving capital appreciation, or promoting ESG principles.

Investment Approach and Strategy

Strategy: Federated Hermes ETFs typically employ active management strategies, seeking to outperform benchmarks or achieve specific investment outcomes through security selection and asset allocation.

Composition The assets held by Federated Hermes ETFs vary depending on the specific fund's investment objective and strategy. They can include stocks, bonds, commodities, or a mix of assets.

Market Share: Federated Hermes ETF Trust's market share varies significantly depending on the specific ETF and its niche within the broader ETF market.

Total Net Assets (AUM): The AUM for each Federated Hermes ETF varies; total AUM for the trust can be in the hundreds of millions or billions collectively.

Key Competitors

• IVV
• SPY
• VTI
• AGG
• BND

Competitive Landscape

The ETF market is highly competitive, with numerous providers offering similar investment strategies. Federated Hermes differentiates itself through its active management approach and specific investment themes, like ESG, which may appeal to certain investors. However, active management comes with higher fees, and outperformance is not guaranteed. The larger passive ETFs from providers like Vanguard, BlackRock and State Street dominate the market.

Historical Performance: Historical performance varies by ETF within the Federated Hermes ETF Trust and depends on its investment strategy. This data needs to be evaluated on a fund by fund basis.

Benchmark Comparison: Performance relative to benchmarks will vary by ETF; some aim to outperform, others to achieve specific outcomes. Refer to each ETF's fact sheet.

Expense Ratio: Expense ratios will vary by ETF within the Federated Hermes ETF Trust due to their active management and specialized strategies.

Average Trading Volume

Average trading volume varies by ETF; the larger, more popular funds will generally have higher trading volume.

Bid-Ask Spread

The bid-ask spread will vary by ETF, with more liquid ETFs generally having tighter spreads.

Market Environment Factors

Economic indicators, sector growth prospects, interest rates, and overall market sentiment affect the performance of Federated Hermes ETFs, particularly those focused on specific sectors or asset classes.

Growth Trajectory

Growth depends on the popularity of their investment strategies, their ability to attract assets, and their performance relative to benchmarks.

Competitive Edge

Federated Hermes ETF Trust benefits from its parent company's strong reputation and established distribution network. Their active management approach seeks to deliver alpha and achieve specific investment objectives. Their focus on ESG and other thematic strategies can appeal to a growing segment of investors. These funds provide access to specialized investment strategies that are not readily available through passive ETFs. The ability of their managers to provide above market returns will decide their success.

Volatility

Volatility varies by ETF and depends on the underlying assets and investment strategy. Equity ETFs will generally be more volatile than fixed-income ETFs.

Market Risk

Market risk depends on the underlying assets and can include equity risk, interest rate risk, credit risk, and commodity price risk.

Ideal Investor Profile

The ideal investor profile varies by ETF, ranging from income-seeking retirees to growth-oriented investors or those seeking ESG-aligned investments. Review individual funds.

Market Risk

Suitability depends on the specific ETF and an investor's risk tolerance, investment objectives, and time horizon. They may be more appropriate for investors seeking active management or specific thematic exposures.

Federated Hermes ETF Trust offers a suite of actively managed ETFs with diverse investment objectives. The funds leverage the expertise of Federated Hermes' management team to provide targeted exposures to specific sectors, asset classes, and investment strategies, including ESG. The success of these ETFs depends on their ability to outperform benchmarks and attract assets, but higher fees can affect returns. Investors should evaluate each fund individually based on its investment objectives, risk profile, and historical performance.

Data Sources:

• Federated Hermes official website
• ETF.com
• Morningstar
• Yahoo Finance
• Bloomberg

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market data is subject to change.