Federated Hermes has just announced that they will be launching a new ETF, the Federated Hermes U.S. Strategic Dividend ETF (FDV). As the name suggests, FDV plans to offer exposure to income generating U.S. companies in good financial standing. FDV will follow 40 to 60 companies that their investment team sees fit to grow and sustain dividends. A quote from the CEO of Federated Hermes states, “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.”
The launch marks the third fund from Federated Hermes with all three being actively managed.