Federated Hermes launches active, short-duration fixed-income ETF

About this update from Federated Hermes, Inc.

Federated Hermes strategically expands ETF lineup to meet client interests and objectives in a wide range of market conditionsFederated Hermes Ultrashort Bond ETF aims to deliver attractive income while maintaining a conservative risk profilePITTSBURGH, June 24, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today introduced Federated Hermes Ultrashort Bond ETF (CBOE: FUSD), designed for investors seeking higher yields in an uncertain interest rate environment.Federated Hermes Ultrashort Bond ETF pursues its objective of providing total return consistent with current income by investing primarily in a diversified portfolio of investment-grade debt securities. The ETF seeks to offer a competitive and attractive yield while minimizing interest rate risk by limiting its effective duration to one year or less.The portfolio management team – led by Nicholas Tripodes, CFA, senior portfolio manager and head of the Low Duration Multisector Group; Daniel Mastalski, CFA, portfolio manager; and Bradley Payne, portfolio manager – actively adjusts positioning as market conditions evolve, drawing on the collective insights of Federated Hermes' fixed income leadership and sector specialists. Portfolio construction is guided by the firm's established fixed-income framework, which emphasizes sector allocation, security selection and interest-rate positioning, seeking diversified sources of alpha rather than reliance on any single market factor. Federated Hermes manages $42.9 billion in short-duration fixed-income assets as of March 31, 2026."We offer a comprehensive suite of investment solutions across the full investment horizon to help meet the evolving needs of our clients," said Paul A. Uhlman, president and chief executive officer of the Federated Advisory Companies. "Through active allocation across high‑quality, short‑term fixed-income sectors, Federated Hermes Ultrashort Bond ETF offers a disciplined step beyond traditional cash alternatives while avoiding long‑duration risk.""With more than 55 years of fixed-income investing experience, Federated Hermes is known for disciplined credit research, management stability and a repeatable investment process," said Brandon Clark, ETF business director at Federated Hermes. "Federated Hermes Ultrashort Bond ETF reflects that long history of short-duration fixed-income str...

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