Federated Hermes, Inc. launches U.S. Strategic Dividend ETF

·4 min read
  • New dividend-focused product adds to growing ETF business

PITTSBURGH, Nov. 16, 2022 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today announced the launch of the Federated Hermes U.S. Strategic Dividend ETF (NYSE: FDV). The new actively managed ETF benefits from Federated Hermes' time-tested approach to managing dividend equity strategies and adds the advantages of an ETF structure, including tax efficiency, lower costs and intraday trading.

The Federated Hermes U.S. Strategic Dividend 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 ETF benefits from a Federated Hermes investment process that has been in place since 2001. 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 to possess the potential to sustain and grow their dividends.

The new ETF 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. They manage more than $30 billion in dividend-paying equity strategies, as of Sept. 30, 2022. The 14-member investment team, which includes analysts, averages more than 16 years of experience.

"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 chief executive officer of Federated Advisory Companies. "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—Federated Hermes Short Duration High Yield ETF (NYSE: FHYS) and Federated Hermes Short Duration Corporate ETF (NYSE: FCSH).

Federated Hermes, Inc. is a global leader in active, responsible investment management, with $624.4 billion in assets under management, as of Sept. 30, 2022. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has nearly 2,000 employees in London, New York and offices worldwide. For more information, visit FederatedHermes.com.


ETFs are subject to risks and fluctuate in value.

There are no guarantees that dividend-paying stocks will continue to pay dividends. In addition, dividend-paying stocks may not experience the same capital appreciation potential as non-dividend-paying stocks.

Because the fund may allocate relatively more assets to certain industry sectors than others, the fund's performance may be more susceptible to any developments which affect those sectors emphasized by the fund. Dividend yield represents a stock's annual dividends divided by its current stock price.

S&P 500® Index is an unmanaged capitalization-weighted index of 500 stocks designated to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

For more complete information, visit FederatedInvestors.com or contact your investment professional for summary prospectuses or prospectuses. You should consider the fund's investment objectives, risks, charges and expenses carefully before you invest. Information about these and other important subjects is in the fund's summary prospectus or prospectus, which you should read carefully before investing. Prospectuses are available by calling Federated Hermes at 1-800-341-7400 or by visiting FederatedInvestors.com.

Fund shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. Investors purchasing and selling at market price may pay brokerage commissions will reduce returns. Market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. NAVs are calculated using prices as of 4 p.m. Eastern Time.

Federated Securities Corp., Distributor



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SOURCE Federated Hermes, Inc.