Federated Hermes ETF Trust (FHYS)FHYS

ETF Federated Hermes ETF Trust

Profile

Federated Hermes ETF Trust is a family of exchange-traded funds (ETFs) managed by Federated Hermes, a global investment management firm with over US$624.3 billion in assets under management (as of June 30, 2023). The trust offers a range of ETFs across various asset classes, including equities, fixed income, and alternative investments. Each ETF within the trust focuses on a specific investment objective and strategy, catering to diverse investor needs.

Objective

The primary investment goal of each ETF within the Federated Hermes ETF Trust varies depending on the specific fund. Some ETFs aim for capital appreciation, while others focus on income generation or a combination of both. The specific investment objective is clearly stated in each ETF's prospectus.

Issuer

Reputation and Reliability: Federated Hermes boasts a long and reputable history in the investment management industry, established in 1903. The firm is known for its strong commitment to responsible investing and environmental, social, and governance (ESG) principles. This dedication has earned Federated Hermes recognition as a leader in sustainable investing, further solidifying its trust and reliability among investors.

Management: Federated Hermes employs a team of experienced portfolio managers and analysts with deep expertise in their respective fields. The investment team utilizes rigorous research and analysis to construct and manage the portfolios within the ETF Trust, aiming to achieve the stated investment objectives.

Market Share

Federated Hermes ETF Trust holds a relatively small but growing market share within the overall ETF landscape. As of October 31, 2023, the Trust manages approximately US$46 billion in assets across its various ETFs.

Total Net Assets

The total net assets under management for all ETFs within the Federated Hermes ETF Trust are approximately US$46 billion as of October 31, 2023. Individual net asset figures for each ETF can be found on the Federated Hermes website.

Moat

Federated Hermes ETF Trust offers several competitive advantages:

• Experienced Management: The experienced portfolio management team leverages deep market expertise to actively manage the ETF portfolios, potentially outperforming their benchmarks.
• ESG Integration: Federated Hermes is a leader in sustainable investing, integrating ESG factors into its investment process. This attracts investors seeking to align their portfolios with responsible investing principles.
• Diverse ETF Offerings: The Trust provides a wide range of ETFs catering to various asset classes and investment styles, catering to the diverse needs of different investors.

Financial Performance

The financial performance of individual ETFs within the Federated Hermes ETF Trust varies depending on the specific fund, investment objective, and market conditions. Historical performance data for each ETF can be found on the Federated Hermes website and compared to relevant benchmarks to understand their effectiveness.

Growth Trajectory

Federated Hermes ETF Trust has experienced steady growth in recent years, reflecting increasing investor demand for actively managed and ESG-focused ETF solutions. This trend is projected to continue as investor awareness and adoption of sustainable investing practices grow.

Liquidity

The liquidity of individual ETFs within the Federated Hermes ETF Trust varies, but generally falls within the average trading volume and bid-ask spread ranges observed in the broader ETF market. Specific figures for each ETF can be found on financial websites like Yahoo Finance or Bloomberg.

Market Dynamics

Market dynamics affecting the performance of ETFs within the Federated Hermes ETF Trust include:

• Economic Indicators: Economic growth, inflation, and interest rate trends significantly impact the performance of different asset classes and sectors.
• Sector Growth Prospects: Growth potential and market dynamics of the specific sector or market segment the ETF focuses on.
• Current Market Conditions: Overall market sentiment, volatility, and global events can affect the performance of all asset classes, including ETF investments.

Competitors

Key competitors to the Federated Hermes ETF Trust include:

• BlackRock iShares ETF Trust: (ISHARES: iShares Core S&P 500 UCITS ETF (IE00B5BMR087)) - Market share of approximately 35%
• Vanguard ETF Trust: (VOO: Vanguard S&P 500 UCITS ETF (IE00B3XXRP09)) - Market share of approximately 25%
• State Street Global Advisors (SSgA) SPDR ETFs: (SPY: SPDR S&P 500 ETF Trust) - Market share of approximately 20%

Other competitors include Charles Schwab Investment Management, Invesco, and T. Rowe Price. Markt share percentages may vary over time.

Expense Ratio

Expense ratios for ETFs within the Federated Hermes ETF Trust typically range from 0.08% to 0.45%, depending on the specific fund. The exact expense ratio for each ETF is disclosed in the fund's prospectus.

Investment Approach and Strategy

The investment approach and strategy vary for each ETF within the Federated Hermes ETF Trust. Some ETFs aim to track specific benchmarks, while others actively manage their portfolios to seek to outperform their benchmarks or achieve a特定的 investment objective. The composition of each ETF varies based on its investment mandate, including stocks, bonds, commodities, or a mix thereof. Details regarding the investment approach, strategy, and composition for each ETF can be found in the respective fund's prospectus.

Key Points:

• Federated Hermes ETF Trust offers actively managed and passively managed ETFs across berbagai kelas aset.
• Strong commitment to sustainable investing principles.
• Experienced investment management team.
• Growing assets under management.
• Competitive expense ratios.

Risks

• Market volatility can significantly impact the returns of ETF investments.
• Specific risks associated with the underlying assets held by each ETF.
• Potential tracking error for passively managed ETFs.
• Management fees and other costs associated with ETFs.

Who Should Consider Investing:

Federated Hermes ETF Trust caters to investors seeking diversified exposure to various asset classes, a focus on sustainability, and actively managed investment solutions.

Individuals with longer investment horizons comfortable with market fluctuations are suitable investors.

Fundamental Rating Based on AI

Based on an evaluation of various financial indicators, market position, and growth trajectory, I would assign Federated Hermes ETF Trust a 7 out of 10 for its fundamentals.

The rating takes into account the firm's established presence in the investment management industry, its commitment to sustainable investing, experienced management team, and growing product offering. However, the relatively lower market share and higher expense ratios for some ETF products compared to some competitors slightly lower the overall score. Overall, Federated Hermes ETF Trust is well-positioned with strong growth potential.

Additional

For more information and detailed analyses of individual ETFs within the Federated Hermes ETF Trust, please visit the Federated Hermes website and consult the specific fund prospectuses.

*Disclaimer: This analysis is provided for informational purposes only and should not be considered financial advice. It is essential to conduct thorough research, understand individual investment objectives and risk tolerance, and consult with a qualified financial professional before making any investment decisions.