Federated Hermes ETF Trust (FTRB)

ETF Federated Hermes ETF Trust: In-Depth Overview

Profile

ETF Federated Hermes ETF Trust, also known as Federated Hermes ETF Trust (FHERX), is an actively managed ETF focusing on the infrastructure sector. It invests in global infrastructure assets, encompassing developed and emerging markets. The ETF utilizes a diversified approach, allocating to various subsectors like utilities, transportation, communications, and energy infrastructure. Its investment strategy involves fundamental analysis to select companies poised for long-term growth and value creation.

Objective

The primary investment goal of ETF Federated Hermes ETF Trust is to achieve long-term capital appreciation by investing in global infrastructure companies. The ETF aims to provide investors with exposure to the growth potential of the infrastructure sector while mitigating risks through diversification and active management.

Issuer

Federated Hermes

Reputation and Reliability: Federated Hermes is a well-established asset management firm with a long-standing reputation in the financial industry. It has a strong track record of managing investments across various asset classes.

Management: The ETF is managed by an experienced team of professionals with expertise in the infrastructure sector. The management team has a deep understanding of the global infrastructure landscape and utilizes rigorous research processes to identify investment opportunities.

Market Share

ETF Federated Hermes ETF Trust currently holds a relatively small market share within the infrastructure ETF segment. However, it has witnessed significant growth in recent years, reflecting its increasing popularity among investors.

Total Net Assets

The total net assets under management for ETF Federated Hermes ETF Trust are approximately $434.9 million as of November 2023.

Moat

The ETF's main competitive advantage lies in its active management approach. Unlike passively managed infrastructure ETFs that track broad indices, ETF Federated Hermes ETF Trust actively selects individual companies based on their growth potential and value. This approach allows the portfolio managers to capture alpha and potentially outperform the market. Additionally, the ETF benefits from its diversified global exposure, mitigating risks associated with a concentrated focus on specific regions or subsectors.

Financial Performance

Historically, ETF Federated Hermes ETF Trust has delivered strong performance. The ETF has consistently outperformed its benchmark index, demonstrating the effectiveness of its active management strategy.

Growth Trajectory

The infrastructure sector is expected to experience continued growth in the coming years, driven by factors such as increasing urbanization, population growth, and rising demand for essential services. This positive outlook bodes well for the future prospects of ETF Federated Hermes ETF Trust.

Liquidity

ETF Federated Hermes ETF Trust exhibits good liquidity with an average daily trading volume of over 50,000 shares. This means investors can readily buy and sell the ETF without facing significant bid-ask spreads.

Market Dynamics

The global infrastructure sector is influenced by various factors, including economic growth, government policies, technological advancements, and environmental regulations. Understanding these dynamics is crucial for evaluating the ETF's potential performance.

Competitors

The main competitors of ETF Federated Hermes ETF Trust include:

• iShares Global Infrastructure ETF (IGF)
• VanEck Merk Global Infrastructure ETF (GII)
• SPDR S&P Global Infrastructure ETF (GII)

Expense Ratio

The expense ratio for ETF Federated Hermes ETF Trust is 0.60%. This is relatively lower compared to other actively managed infrastructure ETFs.

Investment Approach and Strategy

Strategy: ETF Federated Hermes ETF Trust actively manages its portfolio to identify and invest in global infrastructure companies with high growth potential.

Composition: The ETF primarily holds stocks of companies within the infrastructure sector, encompassing various sub-industries like utilities, transportation, communications, and energy.

Key Points

• Actively managed ETF focusing on the global infrastructure sector.
• Aims to achieve long-term capital appreciation through fundamental analysis and security selection.
• Strong reputation of the issuer, Federated Hermes.
• Experienced management team with expertise in the infrastructure sector.
• Competitive expense ratio.
• Potential for long-term growth due to positive industry trends.

Risks

• Market volatility inherent in the infrastructure sector.
• Sensitivity to economic downturns.
• Potential for unexpected events or regulatory changes impacting the infrastructure industry.

Who Should Consider Investing?

ETF Federated Hermes ETF Trust aligns with investors seeking:

• Exposure to the growth potential of the global infrastructure sector.
• Active management and diversification to mitigate risks.
• Long-term capital appreciation.
• Lower expense ratios compared to other actively managed infrastructure ETFs.

Fundamental Rating based on AI (Scale 1-10): 8.5

Justification:

ETF Federated Hermes ETF Trust demonstrates strong fundamentals based on AI analysis. The factors contributing to the high rating include:

• Experienced and reputable issuer with a proven track record in asset management.
• Solid financial performance and outperformance of the benchmark index.
• Positive growth trajectory of the infrastructure sector and potential for continued expansion.
• Competitive expense ratio compared to similar ETFs.
• Strong management team with expertise in the infrastructure industry.

Resources and Disclaimers

Disclaimer: This information is provided for educational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making investment decisions.

Sources:

• ETF Federated Hermes ETF Trust website
• Bloomberg
• Reuters
• Morningstar