Federated Hermes MDT Market Neutral ETF

Federated Hermes MDT Market Neutral ETF is an actively managed exchange-traded fund designed to achieve long-term capital appreciation while minimizing exposure to general stock market risk. The ETF utilizes a market-neutral strategy, implemented by the experienced Federated Hermes MDT Advisers team, who leverage quantitative models to construct a diversified portfolio of long and short positions, primarily within companies from the Russell 3000® Index universe. This approach seeks to generate returns that are uncorrelated to the overall direction of equity markets, thereby aiming for a near-zero beta profile. The fund’s systematic investment process, developed over more than three decades, focuses on identifying stocks expected to outperform (long positions) and underperform (short positions), balancing these to offset broader market movements. The ETF can play a significant role in portfolio diversification, particularly for investors seeking to reduce volatility and enhance risk-adjusted returns. It reflects the growing interest in alternative and absolute return strategies within the ETF structure, providing flexibility and transparency to a wide range of institutional and individual investors.