Federated Hermes ETFS: A Comprehensive Investment Guide

Federated Hermes ETFs are a type of exchange-traded fund that offers a convenient and cost-effective way to invest in a variety of asset classes.

They provide instant diversification by pooling money from many investors to invest in a range of securities, such as stocks, bonds, and commodities.

Federated Hermes ETFs are designed to track a specific index or sector, which means they aim to replicate the performance of a particular market or industry.

This allows investors to gain exposure to a broad range of assets with a single investment, making it easier to manage their portfolio.

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Federated Hermes ETFs offer a range of investment options, including actively managed funds and index-tracking ETFs.

They provide exposure to various asset classes, such as US stocks, international stocks, and bonds.

Their ETFs are listed on major US exchanges, including the NYSE Arca and NASDAQ.

Federated Hermes ETFs have low expense ratios, making them an attractive option for cost-conscious investors.

With over $10 billion in assets under management, they are a well-established player in the ETF market.

Their ETFs are designed to be highly liquid, with many trading thousands of shares per day.

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The Federated Hermes ETFs have shown solid performance across various time periods.

The 1-year return is a notable 5.8%, outpacing many other investment options. This is a significant advantage for investors seeking short-term gains.

Here are some key performance metrics for the Federated Hermes ETFs:

The 1.5% YTD return is a respectable showing, considering the category's low of -9.6%.

Historical prices can be a great indicator of a stock's performance over time. In the past, the price of a stock has fluctuated between $10 and $50, with an average annual return of 8%.

A stock's historical prices can also be used to calculate its volatility. For example, a stock that has experienced a 20% drop in price over the past year is considered more volatile than one that has remained relatively stable.

The historical prices of a stock can also be used to identify trends. If a stock's price has been increasing steadily over the past few years, it may be a good indicator that the company is performing well.

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A stock's historical prices can also be used to calculate its Sharpe ratio, which is a measure of its risk-adjusted return. For example, a stock with a Sharpe ratio of 1.2 has outperformed the market by 20% over the past year.

In general, a stock's historical prices are a useful tool for investors to gauge its performance and make informed decisions.

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The Total Return Ranking (Calendar) metric is a crucial tool for evaluating the performance of investments over a specific time period. This metric is especially useful for comparing the returns of different investments within the same category.

In the example provided, the Total Return Ranking (Calendar) shows that in 2024, the FCSH Return was 4.7%, with a Category Return Low of -17.7% and a Category Return High of 17.7%.

Here's a breakdown of the Total Return Ranking (Calendar) for the past few years:

As you can see, the returns have been quite varied over the years, with some years showing significant losses and others showing substantial gains.

Federated Hermes ETFs offer a range of investment options, including the Federated Hermes Strategic Value Dividend ETF, which focuses on dividend-paying stocks with a value bias.

These ETFs are actively managed by experienced investment professionals who use a research-driven approach to select investments.

The Federated Hermes Total Return ETF, for example, aims to provide total return through a combination of income and capital appreciation.

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Let's take a closer look at the fund details.

The Federated Hermes Short Duration Corporate ETF has a legal name that matches its fund family name, Federated Hermes Funds.

This fund was launched on December 16, 2021.

The fund's shares are denominated in USD and are domiciled in the US.

Here are the key fund details at a glance:

The fund is managed by Robert Matthews.

Fund classification is a crucial aspect of investment analysis. It helps investors understand the characteristics and risks associated with a particular fund.

Equity funds invest in stocks, which are shares of ownership in companies. This type of fund is suitable for investors seeking long-term growth.

Bond funds invest in debt securities, offering regular income and relatively lower risk. They're ideal for conservative investors or those seeking stable returns.

Money market funds invest in low-risk, short-term debt securities, providing liquidity and preserving capital. They're perfect for short-term goals or emergency funds.

Hybrid funds combine different asset classes, such as stocks and bonds, to achieve a balanced portfolio. This type of fund is suitable for investors with a moderate risk tolerance.

Index funds track a specific market index, like the S&P 500, to replicate its performance. They offer broad diversification and low fees, making them a popular choice among investors.

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In the world of investment analysis, one key metric to consider is concentration. Concentration analysis helps you understand how focused an investment portfolio is on a small number of holdings.

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A high concentration of assets in a few holdings can be a concern, as it may increase risk. For example, the FCSH portfolio has a concentration of net assets in its top 10 holdings, with 7.05 M in net assets in the top 10.

The FCSH portfolio has a significant weighting of its top 10 holdings, with 25.28% of its net assets invested in these holdings.

Here's a comparison of the FCSH portfolio with Category Low and Category High portfolios in terms of concentration:

The FCSH portfolio has a relatively high concentration of net assets in its top 10 holdings, with 95.99% of its net assets in the top 10. This is a significant difference from Category Low, which has -23.9 M in net assets in the top 10.

When analyzing bonds, it's essential to consider their geographic breakdown. The data shows that the US accounts for a significant 94.51% of the bond weighting.

This is a substantial portion of the overall bond portfolio. The US returns range from 0.00% to 165.96%, with a FCSH % Rank of 55.43%.

In contrast, the Non-US portion of the bond weighting is much smaller, at 0.00%. However, its returns are still notable, ranging from 0.00% to 72.71%, with a FCSH % Rank of 17.36%.

Here is a summary of the bond geographic breakdown: