United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies
811-23730
(Investment Company Act File Number)
Federated Hermes ETF Trust
______________________________________________________________
(Exact Name of Registrant as Specified in Charter)
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
Peter J. Germain, Esquire
1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
(Notices should be sent to the Agent for Service)
Date of Fiscal Year End: 02/28/23
Date of Reporting Period: Six months ended 08/31/22
Item 1. | Reports to Stockholders |
NASDAQ Ticker | XFHYX |
Principal U.S. Market: NYSE Arca | FHYS |
Federated Hermes Short Duration High Yield ETF
A Portfolio of Federated Hermes ETF Trust
Index Classification | Percentage of Total Net Assets |
Technology | 14.3% |
Health Care | 8.9% |
Midstream | 5.9% |
Gaming | 5.3% |
Insurance - P&C | 5.1% |
Media Entertainment | 5.0% |
Packaging | 4.9% |
Automotive | 4.6% |
Independent Energy | 4.0% |
Chemicals | 3.5% |
Other2 | 37.8% |
Bank Loan Core Fund | 0.7% |
Other Assets and Liabilities - Net3 | (0.0)% |
Total | 100% |
1 | Index classifications are based upon, and individual portfolio securities are assigned to, the classifications and sub-classifications of the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index (BHY2%ICI). Individual portfolio securities that are not included in the BHY2%ICI are assigned to an index classification by the Fund’s Adviser. |
2 | For purposes of this table, index classifications which constitute less than 3.5% of the Fund’s total net assets have been aggregated under the designation “Other.” |
3 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— 64.6% | |||
Aerospace/Defense— 1.2% | |||
$200,000 | TransDigm, Inc., Sr. Sub. Note, 6.375%, 6/15/2026 | $ 192,000 | |
150,000 | TransDigm, Inc., Sr. Sub., Series WI, 5.500%, 11/15/2027 | 134,985 | |
TOTAL | 326,985 | ||
Airlines— 1.2% | |||
350,000 | American Airlines, Inc./AAdvantage Loyalty IP Ltd., 144A, 5.500%, 4/20/2026 | 332,948 | |
Automotive— 4.3% | |||
100,000 | Dornoch Debt Merger Sub, Inc., Sr. Unsecd. Note, 144A, 6.625%, 10/15/2029 | 78,000 | |
500,000 | Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 4.063%, 11/1/2024 | 485,365 | |
250,000 | J.B. Poindexter & Co., Inc., Sr. Unsecd. Note, 144A, 7.125%, 4/15/2026 | 242,188 | |
60,000 | KAR Auction Services, Inc., Sr. Unsecd. Note, 144A, 5.125%, 6/1/2025 | 58,917 | |
250,000 | Panther BF Aggregator 2 LP, Sr. Unsecd. Note, 144A, 8.500%, 5/15/2027 | 245,650 | |
100,000 | Real Hero Merger Sub 2, Inc., Sr. Unsecd. Note, 144A, 6.250%, 2/1/2029 | 81,284 | |
TOTAL | 1,191,404 | ||
Building Materials— 2.5% | |||
250,000 | Cp Atlas Buyer, Inc., Sr. Unsecd. Note, 144A, 7.000%, 12/1/2028 | 204,062 | |
100,000 | Srs Distribution, Inc., Sr. Unsecd. Note, 144A, 6.125%, 7/1/2029 | 82,959 | |
300,000 | Standard Industries, Inc., Sr. Unsecd. Note, 144A, 5.000%, 2/15/2027 | 274,362 | |
150,000 | White Cap Parent LLC, Sr. Sub. Secd. Note, 144A, 8.250%, 3/15/2026 | 130,486 | |
TOTAL | 691,869 | ||
Cable Satellite— 2.5% | |||
150,000 | CCO Holdings LLC/Cap Corp., Sr. Sub. Secd. Note, 144A, 5.500%, 5/1/2026 | 148,500 | |
200,000 | CSC Holdings LLC, Sr. Unsecd. Note, 144A, 5.500%, 4/15/2027 | 189,556 | |
200,000 | DIRECTV Holdings LLC, Sec. Fac. Bond, 144A, 5.875%, 8/15/2027 | 183,000 | |
200,000 | Telenet Finance Luxembourg, Sec. Fac. Bond, 144A, 5.500%, 3/1/2028 | 182,000 | |
TOTAL | 703,056 | ||
Chemicals— 2.6% | |||
200,000 | Cheever Escrow Issuer, Sec. Fac. Bond, 144A, 7.125%, 10/1/2027 | 195,000 | |
120,000 | Herens Holdco S.a.r.l., Sec. Fac. Bond, 144A, 4.750%, 5/15/2028 | 101,690 | |
200,000 | Illuminate Buyer LLC/Illuminate Holdings IV, Inc., Sr. Unsecd. Note, 144A, 9.000%, 7/1/2028 | 172,000 | |
200,000 | Koppers, Inc., Sr. Unsecd. Note, 144A, 6.000%, 2/15/2025 | 187,660 | |
100,000 | Polar US Borrower LLC, Sr. Unsecd. Note, 144A, 6.750%, 5/15/2026 | 64,730 | |
TOTAL | 721,080 | ||
Construction Machinery— 0.7% | |||
200,000 | United Rentals, Inc., Sr. Unsecd. Note, 5.500%, 5/15/2027 | 198,061 |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— continued | |||
Consumer Cyclical Services— 1.3% | |||
$100,000 | Allied Universal Holdco LLC, Sec. Fac. Bond, 144A, 6.625%, 7/15/2026 | $ 93,629 | |
100,000 | Garda World Security Corp., Sec. Fac. Bond, 144A, 4.625%, 2/15/2027 | 87,890 | |
200,000 | The Brink’s Co., Sr. Unsecd. Note, 144A, 5.500%, 7/15/2025 | 195,546 | |
TOTAL | 377,065 | ||
Consumer Products— 1.3% | |||
250,000 | BCPE Empire Holdings, Inc., Sr. Unsecd. Note, 144A, 7.625%, 5/1/2027 | 225,434 | |
150,000 | Edgewell Personal Care Co., Sr. Unsecd. Note, 144A, 5.500%, 6/1/2028 | 138,527 | |
TOTAL | 363,961 | ||
Diversified Manufacturing— 2.5% | |||
250,000 | Gates Global LLC, Sr. Unsecd. Note, 144A, 6.250%, 1/15/2026 | 236,875 | |
350,000 | WESCO Distribution, Inc., Sr. Unsecd. Note, 144A, 7.125%, 6/15/2025 | 350,063 | |
100,000 | WESCO Distribution, Inc., Sr. Unsecd. Note, 144A, 7.250%, 6/15/2028 | 100,826 | |
TOTAL | 687,764 | ||
Finance Companies— 0.5% | |||
150,000 | United Shore Financial Services, Sr. Unsecd. Note, 144A, 5.500%, 11/15/2025 | 132,375 | |
Food & Beverage— 2.1% | |||
250,000 | Aramark Services, Inc., Sr. Unsecd. Note, 144A, 5.000%, 4/1/2025 | 244,035 | |
100,000 | Performance Food Group, Inc., Sr. Unsecd. Note, 144A, 5.500%, 10/15/2027 | 94,263 | |
250,000 | US Foods, Inc., Sec. Fac. Bond, 144A, 6.250%, 4/15/2025 | 251,217 | |
TOTAL | 589,515 | ||
Gaming— 4.4% | |||
100,000 | Affinity Gaming LLC, 144A, 6.875%, 12/15/2027 | 86,838 | |
250,000 | Boyd Gaming Corp., Sr. Unsecd. Note, 4.750%, 12/1/2027 | 233,368 | |
300,000 | Colt Merger Sub, Inc., Sr. Secd. Note, 144A, 6.250%, 7/1/2025 | 292,923 | |
200,000 | Mohegan Tribal Gaming Authority, 144A, 8.000%, 2/1/2026 | 175,950 | |
210,000 | Sugarhouse HSP Gaming Finance Corp., Sec. Fac. Bond, 144A, 5.875%, 5/15/2025 | 194,546 | |
250,000 | VICI Properties LP/ VICI Note Co., Inc., Sr. Unsecd. Note, 144A, 5.625%, 5/1/2024 | 250,375 | |
TOTAL | 1,234,000 | ||
Health Care— 3.2% | |||
150,000 | Ardent Health Services, Sr. Unsecd. Note, 144A, 5.750%, 7/15/2029 | 115,125 | |
70,000 | CHS/Community Health Systems, Inc., Sec. Fac. Bond, 144A, 5.625%, 3/15/2027 | 59,360 | |
200,000 | Global Medical Response, Inc., Sec. Fac. Bond, 144A, 6.500%, 10/1/2025 | 178,500 | |
100,000 | MPH Acquisition Holdings LLC, Sr. Note, 144A, 5.500%, 9/1/2028 | 85,250 | |
150,000 | Team Health Holdings, Inc., Sr. Unsecd. Note, 144A, 6.375%, 2/1/2025 | 118,500 | |
350,000 | Tenet Healthcare Corp., Sr. Secd. Note, 4.625%, 7/15/2024 | 342,723 | |
TOTAL | 899,458 |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— continued | |||
Independent Energy— 3.1% | |||
$150,000 | Centennial Resource Production, LLC, Sr. Unsecd. Note, 144A, 5.375%, 1/15/2026 | $ 138,589 | |
250,000 | Range Resources Corp., Sr. Unsecd. Note, 4.875%, 5/15/2025 | 242,500 | |
250,000 | SM Energy Co., Sr. Unsecd. Note, 6.750%, 9/15/2026 | 245,860 | |
250,000 | Tap Rock Resources LLC, Sr. Unsecd. Note, 144A, 7.000%, 10/1/2026 | 234,090 | |
TOTAL | 861,039 | ||
Industrial - Other— 0.4% | |||
150,000 | Madison Iaq LLC, Sr. Unsecd. Note, 144A, 5.875%, 6/30/2029 | 123,396 | |
Insurance - P&C— 4.3% | |||
282,890 | Ardonagh Midco 2 PLC, Sr. Unsecd. Note, 144A, 11.500%, 1/15/2027 | 286,426 | |
200,000 | AssuredPartners, Inc., Sr. Unsecd. Note, 144A, 7.000%, 8/15/2025 | 192,162 | |
300,000 | Hub International Ltd., Sr. Unsecd. Note, 144A, 7.000%, 5/1/2026 | 293,927 | |
185,000 | NFP Corp., Sr. Unsecd. Note, 144A, 6.875%, 8/15/2028 | 152,018 | |
300,000 | USIS Merger Subsidiary, Inc., Sr. Unsecd. Note, 144A, 6.875%, 5/1/2025 | 293,814 | |
TOTAL | 1,218,347 | ||
Leisure— 0.5% | |||
151,000 | Six Flags Theme Parks, Sec. Fac. Bond, 144A, 7.000%, 7/1/2025 | 152,610 | |
Lodging— 1.4% | |||
400,000 | Hilton Domestic Operating Company, Inc., Sr. Unsecd. Note, 144A, 5.375%, 5/1/2025 | 396,541 | |
Media Entertainment— 3.0% | |||
100,000 | Audacy Capital Corp., 144A, 6.500%, 5/1/2027 | 32,750 | |
250,000 | Cumulus Media News Holdings, Inc., 144A, 6.750%, 7/1/2026 | 223,624 | |
200,000 | iHeartCommunications, Inc., 144A, 5.250%, 8/15/2027 | 179,429 | |
150,000 | Scripps Escrow, Inc., Sr. Unsecd. Note, 144A, 5.875%, 7/15/2027 | 135,746 | |
100,000 | Tegna, Inc., Sr. Unsecd. Note, 144A, 4.625%, 3/15/2028 | 95,812 | |
100,000 | Terrier Media Buyer, Inc., Sr. Unsecd. Note, 144A, 8.875%, 12/15/2027 | 86,003 | |
100,000 | Townsquare Media, Inc., Sec. Fac. Bond, 144A, 6.875%, 2/1/2026 | 93,558 | |
TOTAL | 846,922 | ||
Midstream— 5.9% | |||
250,000 | Antero Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.750%, 3/1/2027 | 236,875 | |
350,000 | Hess Midstream Operations LP, Sr. Unsecd. Note, 144A, 5.625%, 2/15/2026 | 341,274 | |
250,000 | NuStar Logistics LP, Sr. Unsecd. Note, 5.625%, 4/28/2027 | 227,608 | |
350,000 | Rattler Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.625%, 7/15/2025 | 357,129 | |
250,000 | Solaris Midstream Holdings LLC, Sr. Unsecd. Note, 144A, 7.625%, 4/1/2026 | 244,063 | |
250,000 | Suburban Propane Partners LP, Sr. Unsecd. Note, 5.875%, 3/1/2027 | 243,137 | |
TOTAL | 1,650,086 | ||
Oil Field Services— 2.6% | |||
100,000 | Archrock Partners LP / Archrock Partners Finance Corp., Sr. Unsecd. Note, 144A, 6.875%, 4/1/2027 | 93,750 |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— continued | |||
Oil Field Services— continued | |||
$300,000 | Nabors Industries, Inc., Sr. Unsecd. Note, 144A, 7.375%, 5/15/2027 | $ 289,500 | |
250,000 | Precision Drilling Corp., Sr. Unsecd. Note, 144A, 7.125%, 1/15/2026 | 238,942 | |
110,000 | USA Compression Partners LP, Sr. Unsecd. Note, Series WI, 6.875%, 4/1/2026 | 103,163 | |
TOTAL | 725,355 | ||
Packaging— 3.2% | |||
150,000 | Ardagh Packaging Finance PLC/Ardagh Holdings, Sr. Unsecd. Note, 144A, 5.250%, 8/15/2027 | 108,430 | |
350,000 | Owens-Brockway Glass Container, Inc., Sr. Unsecd. Note, 144A, 5.375%, 1/15/2025 | 325,548 | |
260,000 | Trident Merger Subsidiary, Inc., Sr. Unsecd. Note, 144A, 6.625%, 11/1/2025 | 228,355 | |
250,000 | Trivium Packaging Finance BV, Sr. Unsecd. Note, 144A, 8.500%, 8/15/2027 | 237,666 | |
TOTAL | 899,999 | ||
Paper— 1.4% | |||
400,000 | Clearwater Paper Corp., Sr. Unsecd. Note, 144A, 5.375%, 2/1/2025 | 396,500 | |
Pharmaceuticals— 0.3% | |||
100,000 | Bausch Health Cos, Inc., Sec. Fac. Bond, 144A, 5.500%, 11/1/2025 | 82,500 | |
Retailers— 0.7% | |||
200,000 | NMG Holding Co., Inc., 144A, 7.125%, 4/1/2026 | 187,114 | |
Technology— 4.4% | |||
400,000 | AMS AG, Sr. Unsecd. Note, 144A, 7.000%, 7/31/2025 | 381,636 | |
250,000 | Boxer Parent Co., Inc., 144A, 7.125%, 10/2/2025 | 246,969 | |
150,000 | Consensus Cloud Solutions, Inc., Sr. Unsecd. Note, 144A, 6.000%, 10/15/2026 | 136,577 | |
250,000 | Diebold Nixdorf, Inc., Sr. Secd. Note, 144A, 9.375%, 7/15/2025 | 205,174 | |
150,000 | II-VI, Inc., Sr. Unsecd. Note, 144A, 5.000%, 12/15/2029 | 133,556 | |
150,000 | Veritas US, Inc./Veritas Bermuda, Ltd., Sr. Secd. Note, 144A, 7.500%, 9/1/2025 | 115,500 | |
TOTAL | 1,219,412 | ||
Transportation Services— 2.2% | |||
400,000 | Stena International S.A., Sec. Fac. Bond, 144A, 6.125%, 2/1/2025 | 386,000 | |
250,000 | Watco Cos LLC/Finance Co., Sr. Unsecd. Note, 144A, 6.500%, 6/15/2027 | 239,652 | |
TOTAL | 625,652 | ||
Utility - Electric— 0.9% | |||
260,000 | Enviva Partners LP/Enviva Partners Finance Corp., Sr. Unsecd. Note, 144A, 6.500%, 1/15/2026 | 252,551 | |
TOTAL CORPORATE BONDS (IDENTIFIED COST $19,636,582) | 18,087,565 | ||
1 | FLOATING RATE LOANS— 31.4% | ||
Aerospace/Defense— 0.7% | |||
199,486 | Peraton Corp., Term Loan–1st Lien, Series B, 6.274% (1-month USLIBOR +3.750%), 2/1/2028 | 193,501 |
Principal Amount or Shares | Value | ||
1 | FLOATING RATE LOANS— continued | ||
Building Materials— 0.5% | |||
$150,000 | Cornerstone Building Brands, Inc., Term Loan–1st Lien, 7.882% (SOFR CME +5.625%), 8/1/2028 | $ 141,188 | |
Chemicals— 0.9% | |||
249,256 | Messer Industries GmbH, Term Loan–1st Lien, 4.760% (3-month USLIBOR +2.500%), 3/2/2026 | 244,208 | |
Consumer Cyclical Services— 1.2% | |||
250,000 | AP Core Holdings II, LLC, Term Loan–1st Lien, Series B2, 8.024% (1-month USLIBOR +5.500%), 9/1/2027 | 236,457 | |
99,750 | Century Casinos, Inc, Term Loan–1st Lien, 8.407% (SOFR CME +6.100%), 4/2/2029 | 95,511 | |
TOTAL | 331,968 | ||
Consumer Products— 0.5% | |||
149,625 | BCPE Empire Holdings, Inc., Term Loan–1st Lien, 7.180% (SOFR CME +4.625%), 6/11/2026 | 144,762 | |
Financial Institutions— 0.9% | |||
247,436 | Sedgwick Claims Management Services, Inc., Term Loan–1st Lien, Series B3, 6.774% (1-month USLIBOR +4.250%), 9/3/2026 | 243,621 | |
Gaming— 0.9% | |||
250,000 | Great Canadian Gaming Corp., Term Loan–1st Lien, 6.096% (3-month USLIBOR +4.000%), 11/1/2026 | 244,625 | |
Health Care— 5.7% | |||
199,498 | AHP Health Partners, Inc., Term Loan–1st Lien, Series B, 6.024% (1-month USLIBOR +3.500%), 8/24/2028 | 191,579 | |
199,496 | Curia Global, Inc., Term Loan–1st Lien, 6.274%–6.556% (1-month USLIBOR +3.750%, 3-month USLIBOR +3.750%), 8/30/2026 | 192,015 | |
248,744 | Curium BidCo S.a r.l., Term Loan–1st Lien, 6.250% (3-month USLIBOR +4.000%), 12/9/2027 | 241,282 | |
250,000 | MH Sub I, LLC, Term Loan–2nd Lien, 8.705% (SOFR CME +6.250%), 2/23/2029 | 239,250 | |
250,000 | Parexel International Corp., Term Loan–1st Lien, 5.774% (1-month USLIBOR +3.250%), 11/15/2028 | 243,125 | |
249,370 | Press Ganey Holdings, Inc., Term Loan–1st Lien, Series B, 6.274% (1-month USLIBOR +3.750%), 7/24/2026 | 237,837 | |
250,000 | Sotera Health Holdings, LLC, Term Loan–1st Lien, 5.274% (1-month USLIBOR +2.750%), 12/11/2026 | 242,500 | |
TOTAL | 1,587,588 | ||
Independent Energy— 0.9% | |||
250,000 | Ascent Resources Utica Holdings, LLC, Term Loan–2nd Lien, 11.455% (3-month USLIBOR +9.000%), 11/1/2025 | 263,595 | |
Industrial - Other— 2.6% | |||
249,372 | Filtration Group Corp., Term Loan–1st Lien, 6.024% (1-month USLIBOR +3.500%), 10/21/2028 | 242,390 |
Principal Amount or Shares | Value | ||
1 | FLOATING RATE LOANS— continued | ||
Industrial - Other— continued | |||
$249,370 | Fluid-Flow Products, Inc., Term Loan–1st Lien, 6.000% (3-month USLIBOR +3.750%), 3/31/2028 | $ 242,014 | |
250,000 | SPX Flow, Inc., 2022 Term Loan–1st Lien, 7.055% (1-month USLIBOR +4.500%), 4/5/2029 | 236,875 | |
TOTAL | 721,279 | ||
Insurance - P&C— 0.8% | |||
250,000 | Asurion LLC, Term Loan–2nd Lien, Series B3, 7.774% (1-month USLIBOR +5.250%), 1/31/2028 | 213,750 | |
Media Entertainment— 2.0% | |||
249,370 | Magnite, Inc., Term Loan–1st Lien, 5.810%–7.380% (1-month USLIBOR +5.000%, 6-month USLIBOR +5.000%), 4/28/2028 | 239,396 | |
248,750 | NEP Group, Inc., Term Loan–1st Lien, Series B, 8.500% (PRIME +3.000%), 10/20/2025 | 239,006 | |
100,000 | Univision Communications, Inc., Term Loan–1st Lien, Series B, 6.254% (SOFR CME +4.250%), 6/8/2029 | 98,000 | |
TOTAL | 576,402 | ||
Oil Field Services— 0.4% | |||
125,000 | ChampionX Corp., Term Loan–1st Lien, Series B1, 5.643% (SOFR CME +3.250%), 6/7/2029 | 124,375 | |
Packaging— 1.7% | |||
249,367 | Charter NEX US, Inc., Term Loan–1st Lien, 6.556% (3-month USLIBOR +3.750%), 12/1/2027 | 241,796 | |
250,000 | Clydesdale Acquisition Holdings, Inc., Term Loan–1st Lien, Series B, 6.730% (SOFR CME +4.175%), 4/13/2029 | 240,895 | |
TOTAL | 482,691 | ||
Technology— 9.9% | |||
250,000 | Barracuda Networks, Inc., Term Loan–1st Lien, 7.237% (SOFR CME +4.500%), 8/15/2029 | 240,625 | |
150,000 | CDK Global, Inc., Term Loan–1st Lien, Series B, 6.610% (3-month USLIBOR +4.500%), 7/6/2029 | 146,020 | |
186,147 | 2 | Digi International, Inc., Term Loan–1st Lien, Series B, TBD, 12/22/2028 | 184,518 |
248,737 | Gainwell Acquisition Corp., Term Loan–1st Lien, Series B, 6.250% (3-month USLIBOR +4.000%), 10/1/2027 | 242,676 | |
249,367 | Greeneden U.S. Holdings II, LLC, Term Loan–1st Lien, Series B4, 6.524% (1-month USLIBOR +4.000%), 12/1/2027 | 244,736 | |
249,352 | Hyland Software, Inc., Term Loan–1st Lien, 6.024% (1-month USLIBOR +3.500%), 7/1/2024 | 245,879 | |
249,356 | Marcel LUX IV S.a.r.l., Term Loan–1st Lien, Series B, 5.520% (SOFR CME + 3.250%), 3/15/2026 | 243,591 | |
249,361 | NEXUS Buyer LLC, Term Loan–1st Lien, Series B, 6.274% (1-month USLIBOR +3.750%), 11/9/2026 | 241,775 | |
249,375 | Ping Identity Corp., Term Loan–1st Lien, Series B, 6.305% (SOFR CME +3.750%), 11/22/2028 | 248,752 |
Principal Amount or Shares | Value | ||
1 | FLOATING RATE LOANS— continued | ||
Technology— continued | |||
$250,000 | Renaissance Holding Corp., Term Loan–1st Lien, Series B, 6.787% (SOFR CME +4.500%), 3/30/2029 | $ 243,625 | |
250,000 | Ultimate Software Group, Inc. (The), Term Loan–2nd Lien, 7.535% (3-month USLIBOR +5.250%), 5/3/2027 | 242,930 | |
249,362 | VS Buyer, LLC, Term Loan–1st Lien, Series B, 5.524% (1-month USLIBOR +3.000%), 2/28/2027 | 244,063 | |
TOTAL | 2,769,190 | ||
Transportation Services— 0.9% | |||
250,000 | SkyMiles IP Ltd., 2020 Skymiles Term Loan B–1st Lien, 6.460% (3-month USLIBOR +3.750%), 10/20/2027 | 252,990 | |
Utility - Electric— 0.9% | |||
250,000 | TerraForm Power Operating, LLC, 2022 Term Loan B–1st Lien, 5.215% (SOFR CME +2.750%), 5/21/2029 | 247,500 | |
TOTAL FLOATING RATE LOANS (IDENTIFIED COST $8,896,242) | 8,783,233 | ||
ASSET-BACKED SECURITIES— 3.3% | |||
Automotive— 0.3% | |||
100,000 | Volkswagen Auto Lease Trust 2022-A, Class A3, 3.440%, 7/21/2025 | 98,204 | |
Finance Companies— 3.0% | |||
250,000 | Aimco 2020-12A, Class ER, 8.580% (SOFR +6.100%), 1/17/2032 | 231,369 | |
250,000 | Palmer Square Loan Funding Ltd. 2022-2A, Class D, 7.287% (SOFR +6.200%), 10/15/2030 | 224,550 | |
150,000 | Palmer Square Loan Funding Ltd. 2022-5A, Class C, 6.433% (SOFR CME +3.910%), 1/15/2031 | 142,140 | |
250,000 | Stratus CLO 2022-1A, Class D, 6.531% (SOFR +4.250%), 7/20/2030 | 241,565 | |
TOTAL | 839,624 | ||
TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $992,492) | 937,828 | ||
INVESTMENT COMPANY— 0.7% | |||
21,979 | Bank Loan Core Fund (IDENTIFIED COST $211,658) | 196,712 | |
TOTAL INVESTMENT IN SECURITIES—100.0% (IDENTIFIED COST $29,736,974)3 | 28,005,338 | ||
OTHER ASSETS AND LIABILITIES - NET—(0.0)%4 | (5,451) | ||
TOTAL NET ASSETS—100% | $27,999,887 |
Bank Loan Core Fund | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | Total of Affiliated Transactions | |
Value as of 2/28/2022 | $1,687,027 | $540,297 | $2,227,324 |
Purchases at Cost | $— | $8,367,682 | $8,367,682 |
Proceeds from Sales | $(1,390,000) | $(8,907,423) | $(10,297,423) |
Change in Unrealized Appreciation/Depreciation | $4,547 | $(21) | $4,526 |
Net Realized Gain/(Loss) | $(104,862) | $(535) | $(105,397) |
Value as of 8/31/2022 | $196,712 | $— | $196,712 |
Shares Held as of 8/31/2022 | 21,979 | — | 21,979 |
Dividend Income | $31,048 | $6,118 | $37,166 |
1 | Floating/variable note with current rate and current maturity or next reset date shown. |
2 | All or a portion of the security represents unsettled loan commitments at August 31, 2022 where the rate will be determined at time of settlement. |
3 | The cost of investments for federal tax purposes amounts to $29,829,959. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following is a summary of the inputs used, as of August 31, 2022, in valuing the Fund’s assets carried at fair value:
Valuation Inputs | ||||
Level 1— Quoted Prices | Level 2— Other Significant Observable Inputs | Level 3— Significant Unobservable Inputs | Total | |
Debt Securities: | ||||
Corporate Bonds | $— | $18,087,565 | $— | $18,087,565 |
Floating Rate Loans | — | 8,783,233 | — | 8,783,233 |
Asset-Backed Securities | — | 937,828 | — | 937,828 |
Investment Company | 196,712 | — | — | 196,712 |
TOTAL SECURITIES | $196,712 | $27,808,626 | $— | $28,005,338 |
The following acronym(s) are used throughout this portfolio: | ||
LIBOR | —London Interbank Offered Rate | |
SOFR | —Secured Overnight Financing Rate | |
TBD | —To Be Determined |
Six Months Ended (unaudited) 8/31/2022 | Period Ended 2/28/20221 | |
Net Asset Value, Beginning of Period | $24.32 | $25.02 |
Income From Investment Operations: | ||
Net investment income (loss) | 0.61 | 0.43 |
Net realized and unrealized gain (loss) | (1.94) | (0.86) |
TOTAL FROM INVESTMENT OPERATIONS | (1.33) | (0.43) |
Less Distributions: | ||
Distributions from net investment income | (0.66) | (0.27) |
Net Asset Value, End of Period | $22.33 | $24.32 |
Total Return2 | (5.50)% | (1.74)% |
Ratios to Average Net Assets: | ||
Net expenses3 | 0.50%4 | 0.50%4 |
Net investment income | 5.24%4 | 4.67%4 |
Expense waiver/reimbursement5 | 0.10%4 | 0.14%4 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $28,000 | $28,069 |
Portfolio turnover6 | 72% | 7% |
1 | Reflects operations for the period from December 16, 2021 (commencement of operations) to February 28, 2022. |
2 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
3 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
4 | Computed on an annualized basis. |
5 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/reimbursement recorded by investment companies in which the Fund may invest. |
6 | Securities that mature are considered sales for purposes of this calculation. |
August 31, 2022 (unaudited)
Assets: | |
Investment in securities, at value including $196,712 of investments in affiliated holdings* (identified cost $29,736,974) | $28,005,338 |
Income receivable | 361,340 |
Income receivable from affiliated holdings | 2,413 |
Total Assets | 28,369,091 |
Liabilities: | |
Payable for investments purchased | 182,424 |
Payable to bank | 48,121 |
Income distribution payable | 126,403 |
Payable for investment adviser fee (Note 5) | 12,256 |
Total Liabilities | 369,204 |
Net assets for 1,254,000 shares outstanding | $27,999,887 |
Net Assets Consist of: | |
Paid-in capital | $31,612,627 |
Total distributable earnings (loss) | (3,612,740) |
Total Net Assets | $27,999,887 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$27,999,887 ÷ 1,254,000 shares outstanding, no par value, unlimited shares authorized | $22.33 |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended August 31, 2022 (unaudited)
Investment Income: | |
Interest | $860,109 |
Dividends received from affiliated holdings* | 37,166 |
TOTAL INCOME | 897,275 |
Expenses: | |
Investment adviser fee (Note 5) | 93,634 |
TOTAL EXPENSES | 93,634 |
Waiver/reimbursement of investment adviser fee (Note 5) | (14,841) |
Net expenses | 78,793 |
Net investment income | 818,482 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized loss on investments (including net realized loss of $(105,397) on sales of investments in affiliated holdings*) | (1,780,042) |
Net change in unrealized depreciation of investments (including net change in unrealized depreciation of $4,526 on investments in affiliated holdings*) | (986,119) |
Net realized and unrealized gain (loss) on investments | (2,766,161) |
Change in net assets resulting from operations | $(1,947,679) |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 8/31/2022 | Period Ended 2/28/20221 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $818,482 | $256,772 |
Net realized gain (loss) | (1,780,042) | (5,474) |
Net change in unrealized appreciation/depreciation | (986,119) | (745,517) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (1,947,679) | (494,219) |
Distributions to Shareholders | (875,001) | (295,841) |
Share Transactions: | ||
Proceeds from sale of shares | 10,259,303 | 28,858,696 |
Cost of shares redeemed | (7,505,372) | — |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 2,753,931 | 28,858,696 |
Change in net assets | (68,749) | 28,068,636 |
Net Assets: | ||
Beginning of period | 28,068,636 | — |
End of period | $27,999,887 | $28,068,636 |
1 | Reflects operations for the period from December 16, 2021 (commencement of operations) to February 28, 2022. |
Six Months Ended 8/31/2022 | Period Ended 2/28/20221 | |
Shares sold | 440,000 | 1,154,000 |
Shares issued to shareholders in payment of distributions declared | — | — |
Shares redeemed | (340,000) | — |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 100,000 | 1,154,000 |
1 | Reflects operations for the period from December 16, 2021 (commencement of operations) to February 28, 2022. |
Short-Term | Long-Term | Total |
$6,436 | $— | $6,436 |
Purchases | $24,075,653 |
Sales | $24,249,046 |
Beginning Account Value 3/1/2022 | Ending Account Value 8/31/2022 | Expenses Paid During Period1 | |
Actual | $1,000 | $945.00 | $2.45 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,022.68 | $2.55 |
1 | Expenses are equal to the Fund’s annualized net expense ratio of 0.50%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half-year period). |
Annual Evaluation of Adequacy and Effectiveness
IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY
Federated Hermes Funds
4000 Ericsson Drive
Warrendale, PA 15086-7561
or call 1-800-341-7400.
Item 2. | Code of Ethics |
Not Applicable
Item 3. | Audit Committee Financial Expert |
Not Applicable
Item 4. | Principal Accountant Fees and Services |
Not Applicable
Item 5. | Audit Committee of Listed Registrants |
Not Applicable
Item 6. | Schedule of Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable; Fund had no divestments during the reporting period covered since the previous Form N-CSR filing.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not Applicable
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not Applicable
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not Applicable
Item 10. | Submission of Matters to a Vote of Security Holders |
No Changes to Report
Item 11. | Controls and Procedures |
(a) The registrant’s President and Treasurer have concluded that the
registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not Applicable
Item 13. | Exhibits |
(a)(1) Code of Ethics- Not Applicable to this Report.
(a)(2) Certifications of Principal Executive Officer and Principal Financial Officer.
(a)(3) Not Applicable.
(b) Certifications pursuant to 18 U.S.C. Section 1350.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Federated Hermes ETF Trust
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date October 24, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /S/ J. Christopher Donahue
J. Christopher Donahue
Principal Executive Officer
Date October 24, 2022
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date October 24, 2022