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: 10/31/24
Date of Reporting Period: Six months ended 04/30/24
Item 1. | Reports to Stockholders |
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NYSE Arca | FDV |
Federated Hermes U.S. Strategic Dividend ETF
A Portfolio of Federated Hermes ETF Trust
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Sector Composition | Percentage of Total Net Assets |
Utilities | 18.6% |
Consumer Staples | 18.0% |
Health Care | 13.7% |
Financials | 11.0% |
Information Technology | 8.0% |
Industrials | 7.9% |
Energy | 5.6% |
Communication Services | 5.5% |
Real Estate | 4.5% |
Materials | 3.6% |
Consumer Discretionary | 3.3% |
Other Assets and Liabilities—Net2 | 0.3% |
TOTAL | 100% |
1 | Except for Other Assets and Liabilities, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the Adviser assigns a classification to securities not classified by the GICS and to securities for which the Adviser does not have access to the classification made by the GICS. |
2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Shares | Value | ||
COMMON STOCKS— 99.7% | |||
Communication Services— 5.5% | |||
93,223 | AT&T, Inc. | $1,574,537 | |
35,239 | Interpublic Group of Cos., Inc. | 1,072,675 | |
64,168 | Verizon Communications, Inc. | 2,533,994 | |
TOTAL | 5,181,206 | ||
Consumer Discretionary— 3.3% | |||
21,527 | Best Buy Co., Inc. | 1,585,248 | |
4,745 | Darden Restaurants, Inc. | 727,931 | |
9,656 | Starbucks Corp. | 854,459 | |
TOTAL | 3,167,638 | ||
Consumer Staples— 18.0% | |||
5,571 | Clorox Co. | 823,784 | |
92,708 | Conagra Brands, Inc. | 2,853,552 | |
3,659 | Hershey Foods Corp. | 709,553 | |
88,400 | Kenvue, Inc. | 1,663,688 | |
17,844 | Kimberly-Clark Corp. | 2,436,241 | |
7,169 | PepsiCo, Inc. | 1,261,099 | |
31,920 | Philip Morris International, Inc. | 3,030,485 | |
14,809 | Target Corp. | 2,383,953 | |
30,927 | The Coca-Cola Co. | 1,910,361 | |
TOTAL | 17,072,716 | ||
Energy— 5.6% | |||
16,326 | Chevron Corp. | 2,632,894 | |
10,118 | EOG Resources, Inc. | 1,336,891 | |
11,796 | Exxon Mobil Corp. | 1,395,113 | |
TOTAL | 5,364,898 | ||
Financials— 11.0% | |||
82,307 | Huntington Bancshares, Inc. | 1,108,675 | |
7,773 | JPMorgan Chase & Co. | 1,490,395 | |
25,501 | Morgan Stanley | 2,316,511 | |
17,257 | PNC Financial Services Group, Inc. | 2,644,808 | |
39,172 | Truist Financial Corp. | 1,470,909 | |
34,439 | U.S. Bancorp | 1,399,256 | |
TOTAL | 10,430,554 | ||
Health Care— 13.7% | |||
9,776 | AbbVie, Inc. | 1,589,969 | |
12,587 | Amgen, Inc. | 3,448,083 | |
41,742 | Bristol-Myers Squibb Co. | 1,834,143 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Health Care— continued | |||
27,057 | Gilead Sciences, Inc. | $1,764,116 | |
14,140 | Johnson & Johnson | 2,044,503 | |
5,142 | Merck & Co., Inc. | 664,449 | |
67,387 | Pfizer, Inc. | 1,726,455 | |
TOTAL | 13,071,718 | ||
Industrials— 7.9% | |||
1,723 | Lockheed Martin Corp. | 801,075 | |
10,946 | MSC Industrial Direct Co. | 998,713 | |
11,283 | Paychex, Inc. | 1,340,533 | |
22,328 | Stanley Black & Decker, Inc. | 2,040,779 | |
15,639 | United Parcel Service, Inc. | 2,306,440 | |
TOTAL | 7,487,540 | ||
Information Technology— 8.0% | |||
26,581 | Cisco Systems, Inc. | 1,248,775 | |
73,059 | Corning, Inc. | 2,438,710 | |
8,996 | Skyworks Solutions, Inc. | 958,884 | |
16,889 | Texas Instruments, Inc. | 2,979,557 | |
TOTAL | 7,625,926 | ||
Materials— 3.6% | |||
156,751 | Amcor PLC | 1,401,354 | |
20,353 | LyondellBasell Industries N.V. | 2,034,689 | |
TOTAL | 3,436,043 | ||
Real Estate— 4.5% | |||
80,170 | Kimco Realty Corp. | 1,493,567 | |
43,568 | NNN REIT, Inc. | 1,765,811 | |
10,044 | ProLogis Inc. | 1,024,990 | |
TOTAL | 4,284,368 | ||
Utilities— 18.6% | |||
21,944 | American Electric Power Co., Inc. | 1,887,842 | |
26,833 | Dominion Energy, Inc. | 1,367,946 | |
28,837 | Duke Energy Corp. | 2,833,524 | |
12,109 | Entergy Corp. | 1,291,667 | |
39,193 | Evergy, Inc. | 2,055,673 | |
7,259 | NextEra Energy, Inc. | 486,135 | |
54,544 | PPL Corp. | 1,497,778 | |
30,960 | Public Service Enterprises Group, Inc. | 2,138,717 | |
40,767 | Southern Co. | 2,996,375 |
Shares | Value | ||
COMMON STOCKS— continued | |||
Utilities— continued | |||
13,823 | WEC Energy Group, Inc. | $1,142,333 | |
TOTAL | 17,697,990 | ||
TOTAL INVESTMENT IN SECURITIES—99.7% (IDENTIFIED COST $94,647,580)1 | 94,820,597 | ||
OTHER ASSETS AND LIABILITIES - NET—0.3%2 | 257,665 | ||
TOTAL NET ASSETS—100% | $95,078,262 |
1 | Also represents cost of investments for federal tax purposes. |
2 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
The following acronym(s) are used throughout this portfolio: | ||
REIT | —Real Estate Investment Trust |
Six Months Ended (unaudited) 4/30/2024 | Period Ended 10/31/20231 | |
Net Asset Value, Beginning of Period | $21.73 | $25.16 |
Income From Investment Operations: | ||
Net investment income2 | 0.44 | 0.83 |
Net realized and unrealized gain (loss) | 2.61 | (3.57) |
Total from Investment Operations | 3.05 | (2.74) |
Less Distributions: | ||
Distributions from net investment income | (0.46) | (0.69) |
Net Asset Value, End of Period | $24.32 | $21.73 |
Total Return3 | 14.08% | (11.11)% |
Ratios to Average Net Assets: | ||
Net expenses4 | 0.50%5 | 0.50%5 |
Net investment income | 3.67%5 | 3.60%5 |
Expense waiver/reimbursement6 | 0.10%5 | 0.12%5 |
Supplemental Data: | ||
Net assets, end of period (000 omitted) | $95,078 | $65,393 |
Portfolio turnover7 | 17% | 35% |
1 | Reflects operations for the period from November 15, 2022 (commencement of operations) to October 31, 2023. |
2 | Per share numbers have been calculated using the average shares method. |
3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
5 | Computed on an annualized basis. |
6 | 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. |
7 | Securities that mature are considered sales for purposes of this calculation. |
Assets: | |
Investment in securities, at value (identified cost $94,647,580) | $94,820,597 |
Cash | 278,766 |
Receivable for shares sold | 3,039,588 |
Income receivable | 214,482 |
Total Assets | 98,353,433 |
Liabilities: | |
Payable for investments purchased | $3,043,040 |
Income distribution payable | 194,170 |
Payable for investment adviser fee (Note 5) | 37,961 |
TOTAL LIABILITIES | 3,275,171 |
Net assets for 3,910,000 shares outstanding | $95,078,262 |
Net Assets Consist of: | |
Paid-in capital | $96,702,665 |
Total distributable earnings (loss) | (1,624,403) |
TOTAL NET ASSETS | $95,078,262 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$95,078,262 ÷ 3,910,000 shares outstanding, no par value, unlimited shares authorized | $24.32 |
Investment Income: | |
Dividends | $1,685,247 |
Expenses: | |
Investment adviser fee (Note 5) | $242,092 |
Share registration costs | 128 |
TOTAL EXPENSES | 242,220 |
Waiver of investment adviser fee (Note 5) | (38,492) |
Net expenses | 203,728 |
Net investment income | 1,481,519 |
Realized and Unrealized Gain (Loss) on Investments and In-Kind Redemptions: | |
Net realized loss on investments | (1,475,641) |
Net realized gain on in-kind redemptions | 2,690,732 |
Net change in unrealized depreciation of investments | 6,900,660 |
Net realized and unrealized gain (loss) on investments and in-kind redemptions | 8,115,751 |
Change in net assets resulting from operations | $9,597,270 |
Six Months Ended (unaudited) 4/30/2024 | Period Ended 10/31/20231 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $1,481,519 | $1,628,040 |
Net realized gain (loss) | 1,215,091 | (2,159,177) |
Net change in unrealized appreciation/depreciation | 6,900,660 | (6,727,643) |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | 9,597,270 | (7,258,780) |
Distribution to Shareholders | (1,533,689) | (1,481,899) |
Share Transactions: | ||
Proceeds from sale of shares | 38,682,244 | 82,547,570 |
Cost of shares redeemed | (17,060,114) | (8,414,340) |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | 21,622,130 | 74,133,230 |
Change in net assets | 29,685,711 | 65,392,551 |
Net Assets: | ||
Beginning of period | 65,392,551 | — |
End of period | $95,078,262 | $65,392,551 |
1 | Reflects operations for the period from November 15, 2022 (commencement of operations) to October 31, 2023. |
Six Months Ended 4/30/2024 | Period Ended 10/31/20231 | |
Shares sold | 1,610,000 | 3,360,004 |
Shares issued to shareholders in payment of distributions declared | — | — |
Shares redeemed | (710,000) | (350,004) |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | 900,000 | 3,010,000 |
1 | Reflects operations for the period November 15, 2022 (commencement of operations) to October 31, 2023. |
Short-Term | Long-Term | Total |
$3,048,746 | $— | $3,048,746 |
Purchases | $52,161,509 |
Sales | $30,436,100 |
Beginning Account Value 11/1/2023 | Ending Account Value 4/30/2024 | Expenses Paid During Period1 | |
Actual | $1,000.00 | $1,140.80 | $2.66 |
Hypothetical (assuming a 5% return before expenses) | $1,000.00 | $1,022.38 | $2.51 |
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 182/366 (to reflect the one-half-year period). |
Annual Evaluation of Adequacy and Effectiveness
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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 18. | Recovery of Erroneously Awarded Compensation |
(a) | Not Applicable |
(b) | 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/ Jeremy D. Boughton
Jeremy D. Boughton
Principal Financial Officer
Date June 21, 2024
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 June 21, 2024
By /S/ Jeremy D. Boughton
Jeremy D. Boughton
Principal Financial Officer
Date June 21, 2024