- 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.
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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.