Federated Hermes launched the Federated Hermes U.S. Strategic Dividend ETF (FDV ). The new actively managed ETF seeks income and long-term capital appreciation by investing in U.S. companies with dividend yields above the S&P 500 Index average.
The strategy invests in lower-volatility, income-producing U.S. companies that are in strong financial condition and have demonstrated resilience through business and economic cycles. The ETF provides access to the 40–60 U.S. companies identified by the investment team’s fundamental research process as possessing the potential to sustain and grow their dividends.
“Advisors have increasingly sought out actively managed ETFs and, separately, dividend strategies in 2022 given the market volatility and the rising rate environment,” said Todd Rosenbluth, head of research at VettaFi. “The new Federated Hermes fund combines these trends and is run by an experienced team focused on fundamentals and valuation attributes.”
FDV is managed by Daniel Peris, senior portfolio manager and head of the Strategic Value Dividend Group, and portfolio managers Deborah Bickerstaff, Jared Hoff, and Michael Tucker.
“High dividend-paying stocks have the potential for lower downside risk in challenging markets. In the current inflationary environment, the U.S. Strategic Dividend ETF provides an option for investors seeking lower volatility than the broader market,” said John B. Fisher, president and CEO of Federated Advisory Companies, in a news release. “The new ETF extends our highly sought dividend income offerings to new clients while broadening available offerings to existing clients.”
The U.S. Strategic Dividend ETF launch marks Federated Hermes’ third ETF product, following the 2021 introduction of two active, fixed income products — the Federated Hermes Short Duration High Yield ETF (FHYS ) and the Federated Hermes Short Duration Corporate ETF (FCSH ).
FDV carries an expense ratio of 0.5%.
Federated Hermes had $624.4 billion in assets under management as of September 30.
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