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: 04/30/24
Date of Reporting Period: Six months ended 10/31/23
Item 1. | Reports to Stockholders |
NYSE Arca | FCSH |
Federated Hermes Short Duration Corporate ETF
A Portfolio of Federated Hermes ETF Trust
Type of Investments | Percentage of Total Net Assets |
Corporate Debt Securities | 98.2% |
Derivative Contracts2 | (0.3)% |
Cash Equivalents3 | 1.0% |
Other Assets and Liabilities—Net4 | 1.1% |
TOTAL | 100% |
1 | See the Fund’s Prospectus and Statement of Additional Information for a description of these security types. |
2 | Based upon net unrealized appreciation (depreciation) or value of the derivative contracts as applicable. Derivative contracts may consist of futures, forwards, options and swaps. The impact of a derivative contract on the Fund’s performance may be larger than its unrealized appreciation (depreciation) or value may indicate. In many cases, the notional value or amount of a derivative contract may provide a better indication of the contract’s significance to the portfolio. More complete information regarding the Fund’s direct investments in derivative contracts, including unrealized appreciation (depreciation), value and notional values or amounts of such contracts, can be found in the table at the end of the Portfolio of Investments included in this Report. |
3 | Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements. |
4 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— 98.2% | |||
Basic Industry - Metals & Mining— 1.5% | |||
$ 152,000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 1.625%, 9/1/2025 | $ 140,374 | |
127,000 | Southern Copper Corp., Sr. Unsecd. Note, 3.875%, 4/23/2025 | 122,841 | |
127,000 | Steel Dynamics, Inc., Sr. Unsecd. Note, 2.800%, 12/15/2024 | 122,335 | |
TOTAL | 385,550 | ||
Capital Goods - Aerospace & Defense— 3.3% | |||
306,000 | Boeing Co., Sr. Unsecd. Note, 4.875%, 5/1/2025 | 300,613 | |
200,000 | HEICO Corp., Sr. Unsecd. Note, 5.250%, 8/1/2028 | 192,927 | |
152,000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 3.625%, 5/15/2025 | 145,674 | |
254,000 | RTX Corp, Sr. Unsecd. Note, 3.125%, 5/4/2027 | 231,363 | |
TOTAL | 870,577 | ||
Capital Goods - Building Materials— 0.7% | |||
102,000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.200%, 10/1/2024 | 99,188 | |
102,000 | Carrier Global Corp., Sr. Unsecd. Note, 2.242%, 2/15/2025 | 97,116 | |
TOTAL | 196,304 | ||
Capital Goods - Construction Machinery— 1.6% | |||
152,000 | Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 1.500%, 8/12/2026 | 133,586 | |
152,000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.200%, 1/15/2024 | 151,343 | |
152,000 | Weir Group PLC/The, Sr. Unsecd. Note, 144A, 2.200%, 5/13/2026 | 136,402 | |
TOTAL | 421,331 | ||
Capital Goods - Diversified Manufacturing— 0.9% | |||
102,000 | Roper Technologies, Inc., Sr. Unsecd. Note, 3.850%, 12/15/2025 | 98,124 | |
152,000 | Vontier Corp., Sr. Unsecd. Note, Series WI, 1.800%, 4/1/2026 | 135,393 | |
TOTAL | 233,517 | ||
Communications - Cable & Satellite— 1.9% | |||
204,000 | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., Series USD, 4.500%, 2/1/2024 | 202,351 | |
306,000 | Comcast Corp., Sr. Unsecd. Note, 3.150%, 3/1/2026 | 290,332 | |
TOTAL | 492,683 | ||
Communications - Media & Entertainment— 3.1% | |||
152,000 | Discovery Communications LLC, Sr. Unsecd. Note, 4.900%, 3/11/2026 | 148,102 | |
102,000 | Grupo Televisa S.A., Sr. Unsecd. Note, 6.625%, 3/18/2025 | 102,561 | |
229,000 | Meta Platforms, Inc., Sr. Unsecd. Note, 3.500%, 8/15/2027 | 215,299 | |
356,000 | Netflix, Inc., Sr. Unsecd. Note, 4.375%, 11/15/2026 | 342,420 | |
TOTAL | 808,382 | ||
Communications - Telecom Wireless— 1.8% | |||
152,000 | American Tower Corp., Sr. Unsecd. Note, 2.950%, 1/15/2025 | 146,332 | |
200,000 | Crown Castle, Inc., Sr. Unsecd. Note, 4.800%, 9/1/2028 | 186,877 | |
152,000 | T-Mobile USA, Inc., Series WI, 3.500%, 4/15/2025 | 146,851 | |
TOTAL | 480,060 |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— continued | |||
Communications - Telecom Wirelines— 1.4% | |||
$ 254,000 | AT&T, Inc., Sr. Unsecd. Note, 1.700%, 3/25/2026 | $ 230,546 | |
152,000 | Rogers Communications, Inc., Sr. Unsecd. Note, 3.200%, 3/15/2027 | 138,178 | |
TOTAL | 368,724 | ||
Consumer Cyclical - Automotive— 3.6% | |||
254,000 | Daimler Trucks Financial NA, Sr. Unsecd. Note, 144A, 2.000%, 12/14/2026 | 226,109 | |
254,000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 3.950%, 4/13/2024 | 251,166 | |
225,000 | Mercedes-Benz Finance NA LLC, Sr. Unsecd. Note, 144A, 5.250%, 11/29/2027 | 221,038 | |
254,000 | Volkswagen Group of America Finance LLC, Sr. Unsecd. Note, 144A, 3.350%, 5/13/2025 | 243,535 | |
TOTAL | 941,848 | ||
Consumer Cyclical - Retailers— 1.0% | |||
254,000 | Home Depot, Inc., Sr. Unsecd. Note, 3.750%, 2/15/2024 | 252,684 | |
Consumer Cyclical - Services— 0.8% | |||
225,000 | Amazon.com, Inc., Sr. Unsecd. Note, 4.550%, 12/1/2027 | 218,949 | |
Consumer Non-Cyclical - Food/Beverage— 5.4% | |||
254,000 | Anheuser-Busch Cos LLC / Anheuser-Busch InBev Worldwide, Inc., Sr. Unsecd. Note, 3.650%, 2/1/2026 | 244,193 | |
250,000 | Bacardi Ltd., Sr. Unsecd. Note, 144A, 5.250%, 1/15/2029 | 238,114 | |
152,000 | Coca-Cola Co., Sr. Unsecd. Note, 1.750%, 9/6/2024 | 147,260 | |
152,000 | Grupo Bimbo S.A.B. de CV, Sr. Unsecd. Note, 144A, 3.875%, 6/27/2024 | 150,376 | |
127,000 | International Flavors & Fragrances, Inc., Sr. Unsecd. Note, 144A, 1.230%, 10/1/2025 | 114,496 | |
152,000 | JDE Peet’s B.V., Sr. Unsecd. Note, 144A, 0.800%, 9/24/2024 | 144,856 | |
204,000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 3.000%, 6/1/2026 | 190,630 | |
204,000 | Sysco Corp., Sr. Unsecd. Note, 3.300%, 7/15/2026 | 190,706 | |
TOTAL | 1,420,631 | ||
Consumer Non-Cyclical - Health Care— 5.1% | |||
152,000 | Alcon Finance Corp., Sr. Unsecd. Note, 144A, 2.750%, 9/23/2026 | 139,098 | |
152,000 | Becton Dickinson & Co., Sr. Unsecd. Note, 3.363%, 6/6/2024 | 149,587 | |
254,000 | CVS Health Corp., Sr. Unsecd. Note, 1.300%, 8/21/2027 | 214,240 | |
450,000 | GE Healthcare Holding LLC, Unsecd. Note, 5.650%, 11/15/2027 | 445,385 | |
95,000 | HCA, Inc., Sr. Unsecd. Note, 5.200%, 6/1/2028 | 90,451 | |
152,000 | PerkinElmer, Inc., Sr. Unsecd. Note, 0.850%, 9/15/2024 | 144,959 | |
152,000 | Thermo Fisher Scientific, Inc., Sr. Unsecd. Note, 1.215%, 10/18/2024 | 145,289 | |
TOTAL | 1,329,009 | ||
Consumer Non-Cyclical - Pharmaceuticals— 4.0% | |||
204,000 | AbbVie, Inc., Sr. Unsecd. Note, 2.600%, 11/21/2024 | 197,117 | |
250,000 | Amgen, Inc., Sr. Unsecd. Note, 5.150%, 3/2/2028 | 243,995 | |
152,000 | Bayer US Finance LLC, Sr. Unsecd. Note, 144A, 3.375%, 10/8/2024 | 148,037 | |
250,000 | Pfizer Investment Enterprises Pte Ltd., Sr. Unsecd. Note, 4.450%, 5/19/2028 | 238,953 | |
68,000 | Takeda Pharmaceutical Co. Ltd., Sr. Unsecd. Note, 4.400%, 11/26/2023 | 67,925 |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— continued | |||
Consumer Non-Cyclical - Pharmaceuticals— continued | |||
$ 152,000 | Zoetis, Inc., Sr. Unsecd. Note, 3.000%, 9/12/2027 | $ 138,117 | |
TOTAL | 1,034,144 | ||
Consumer Non-Cyclical - Tobacco— 2.4% | |||
204,000 | Altria Group, Inc., Sr. Unsecd. Note, 4.000%, 1/31/2024 | 202,782 | |
204,000 | BAT Capital Corp., Sr. Unsecd. Note, 2.789%, 9/6/2024 | 198,470 | |
225,000 | Philip Morris International, Inc., Sr. Unsecd. Note, 5.125%, 11/17/2027 | 219,322 | |
TOTAL | 620,574 | ||
Energy - Independent— 2.3% | |||
204,000 | Canadian Natural Resources Ltd., Sr. Unsecd. Note, 3.800%, 4/15/2024 | 201,824 | |
259,000 | Hess Corp., Sr. Unsecd. Note, 3.500%, 7/15/2024 | 254,287 | |
140,000 | Ovintiv, Inc., Sr. Unsecd. Note, 5.650%, 5/15/2028 | 135,925 | |
TOTAL | 592,036 | ||
Energy - Integrated— 0.8% | |||
204,000 | Cenovus Energy, Inc., Sr. Unsecd. Note, 5.375%, 7/15/2025 | 201,741 | |
Energy - Midstream— 4.8% | |||
120,000 | Columbia Pipeline Holding Co. LLC, Sr. Unsecd. Note, 144A, 6.042%, 8/15/2028 | 117,917 | |
306,000 | Energy Transfer LP, Sr. Unsecd. Note, 4.050%, 3/15/2025 | 297,451 | |
204,000 | MPLX LP, Sr. Unsecd. Note, 4.875%, 12/1/2024 | 201,246 | |
204,000 | Oneok Partners LP, Sr. Unsecd. Note, 4.900%, 3/15/2025 | 200,371 | |
254,000 | Targa Resources, Inc., Sr. Unsecd. Note, 5.200%, 7/1/2027 | 245,766 | |
204,000 | Williams Partners LP, Sr. Unsecd. Note, 3.900%, 1/15/2025 | 198,648 | |
TOTAL | 1,261,399 | ||
Energy - Refining— 0.8% | |||
204,000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.700%, 5/1/2025 | 199,749 | |
Financial Institution - Banking— 24.1% | |||
254,000 | American Express Co., Sr. Unsecd. Note, 3.400%, 2/22/2024 | 251,977 | |
1,018,000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 0.981%, 9/25/2025 | 968,944 | |
254,000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 1.600%, 4/24/2025 | 238,285 | |
739,000 | Citigroup, Inc., Sr. Unsecd. Note, 3.106%, 4/8/2026 | 705,286 | |
250,000 | Fifth Third Bancorp, Sr. Unsecd. Note, 6.361%, 10/27/2028 | 243,323 | |
50,000 | FNB Corp. (PA), Sr. Unsecd. Note, 5.150%, 8/25/2025 | 47,988 | |
637,000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, Series VAR, 1.093%, 12/9/2026 | 568,686 | |
1,018,000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 1.040%, 2/4/2027 | 905,230 | |
250,000 | Manufacturers & Traders Trust Co., Sr. Unsecd. Note, 4.700%, 1/27/2028 | 226,544 | |
764,000 | Morgan Stanley, Sr. Unsecd. Note, Series MTN, 1.164%, 10/21/2025 | 722,785 | |
254,000 | PNC Bank National Association, Sr. Unsecd. Note, Series BKNT, 3.300%, 10/30/2024 | 247,431 | |
140,000 | 1 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 6.615% (SOFR +1.730%), 10/20/2027 | 140,348 |
254,000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 1.267%, 3/2/2027 | 222,667 |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— continued | |||
Financial Institution - Banking— continued | |||
$ 254,000 | US Bancorp, Sr. Unsecd. Note, Series MTN, 2.215%, 1/27/2028 | $ 221,130 | |
637,000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.164%, 2/11/2026 | 602,539 | |
TOTAL | 6,313,163 | ||
Financial Institution - Broker/Asset Mgr/Exchange— 0.4% | |||
105,000 | Jefferies Financial Group LLC, Sr. Unsecd. Note, 5.875%, 7/21/2028 | 101,357 | |
Financial Institution - Finance Companies— 2.6% | |||
254,000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, Series 3NC1, 1.750%, 10/29/2024 | 242,528 | |
204,000 | Air Lease Corp., Sr. Unsecd. Note, Series MTN, 0.700%, 2/15/2024 | 200,670 | |
254,000 | NTT Finance Corp., Sr. Unsecd. Note, 144A, 4.372%, 7/27/2027 | 242,732 | |
TOTAL | 685,930 | ||
Financial Institution - Insurance - Health— 2.6% | |||
204,000 | Centene Corp., Sr. Unsecd. Note, Series WI, 4.250%, 12/15/2027 | 187,741 | |
254,000 | Elevance Health, Inc., Sr. Unsecd. Note, 3.650%, 12/1/2027 | 233,990 | |
250,000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 5.250%, 2/15/2028 | 248,347 | |
TOTAL | 670,078 | ||
Financial Institution - Insurance - Life— 0.5% | |||
127,000 | AIA Group Ltd., Sr. Unsecd. Note, 144A, 3.200%, 3/11/2025 | 122,805 | |
Financial Institution - Insurance - P&C— 1.6% | |||
167,000 | American International Group, Sr. Unsecd. Note, 2.500%, 6/30/2025 | 157,609 | |
254,000 | CNA Financial Corp., Sr. Unsecd. Note, 3.950%, 5/15/2024 | 250,937 | |
TOTAL | 408,546 | ||
Financial Institution - REIT - Apartment— 0.4% | |||
127,000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 2.950%, 9/1/2026 | 117,425 | |
Financial Institution - REIT - Healthcare— 0.5% | |||
127,000 | Health Care REIT, Inc., Sr. Unsecd. Note, 4.000%, 6/1/2025 | 122,755 | |
Financial Institution - REIT - Office— 1.4% | |||
254,000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.450%, 4/30/2025 | 244,324 | |
127,000 | Boston Properties LP, Sr. Unsecd. Note, 3.200%, 1/15/2025 | 121,528 | |
TOTAL | 365,852 | ||
Technology— 7.4% | |||
254,000 | Apple, Inc., Sr. Unsecd. Note, 3.450%, 5/6/2024 | 251,367 | |
204,000 | Broadcom Corp., Sr. Unsecd. Note, 3.125%, 1/15/2025 | 196,850 | |
254,000 | CDW LLC / CDW Finance, Sr. Unsecd. Note, 2.670%, 12/1/2026 | 227,201 | |
204,000 | Fiserv, Inc., Sr. Unsecd. Note, 2.750%, 7/1/2024 | 199,577 | |
152,000 | Keysight Technologies, Inc., Sr. Unsecd. Note, 4.550%, 10/30/2024 | 149,627 | |
254,000 | Micron Technology, Inc., Sr. Unsecd. Note, 4.185%, 2/15/2027 | 237,774 | |
204,000 | Oracle Corp., Sr. Unsecd. Note, 1.650%, 3/25/2026 | 185,026 | |
254,000 | Verisk Analytics, Inc., Unsecd. Note, 4.000%, 6/15/2025 | 246,057 | |
254,000 | VMware, Inc., Sr. Unsecd. Note, 1.000%, 8/15/2024 | 243,953 | |
TOTAL | 1,937,432 |
Principal Amount or Shares | Value | ||
CORPORATE BONDS— continued | |||
Technology Services— 0.7% | |||
$ 204,000 | Global Payments, Inc., Sr. Unsecd. Note, 2.650%, 2/15/2025 | $ 194,499 | |
Transportation - Services— 1.6% | |||
152,000 | GXO Logistics, Inc., Sr. Unsecd. Note, Series WI, 1.650%, 7/15/2026 | 133,749 | |
152,000 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 2.700%, 11/1/2024 | 146,689 | |
152,000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 2.500%, 9/1/2024 | 147,487 | |
TOTAL | 427,925 | ||
Utility - Electric— 7.2% | |||
254,000 | Ameren Corp., Sr. Unsecd. Note, 1.950%, 3/15/2027 | 224,813 | |
90,000 | American Electric Power Co., Inc., Sr. Unsecd. Note, 5.750%, 11/1/2027 | 89,418 | |
204,000 | Dominion Energy, Inc., Jr. Sub. Note, 3.071%, 8/15/2024 | 199,140 | |
204,000 | Duke Energy Corp., Sr. Unsecd. Note, 3.750%, 4/15/2024 | 202,003 | |
127,000 | Emera US Finance LP, Sr. Unsecd. Note, 3.550%, 6/15/2026 | 119,023 | |
152,000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 2.650%, 9/10/2024 | 147,312 | |
152,000 | EverSource Energy, Sr. Unsecd. Note, Series L, 2.900%, 10/1/2024 | 147,738 | |
225,000 | National Rural Utilities Cooperative Finance Corp., Sr. Unsecd. Note, 4.800%, 3/15/2028 | 217,714 | |
254,000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 3.550%, 5/1/2027 | 233,696 | |
254,000 | NiSource, Inc., Sr. Unsecd. Note, 0.950%, 8/15/2025 | 232,071 | |
82,000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 5.150%, 10/1/2027 | 80,006 | |
TOTAL | 1,892,934 | ||
TOTAL CORPORATE BONDS (IDENTIFIED COST $27,143,104) | 25,690,593 | ||
INVESTMENT COMPANY— 1.0% | |||
262,177 | Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares, 5.45%2 (IDENTIFIED COST $262,167) | 262,177 | |
TOTAL INVESTMENT IN SECURITIES—99.2% (IDENTIFIED COST $27,405,271)3 | 25,952,770 | ||
OTHER ASSETS AND LIABILITIES - NET—0.8%4 | 209,295 | ||
TOTAL NET ASSETS—100% | $26,162,065 |
Description | Number of Contracts | Notional Value | Expiration Date | Value and Unrealized (Depreciation) |
Long Futures: | ||||
United States Treasury Notes 10-Year Long Futures | 21 | $2,229,609 | December 2023 | $(81,997) |
Federated Hermes Institutional Prime Value Obligations Fund, Institutional Shares | |
Value as of 4/30/2023 | $192,863 |
Purchases at Cost | $1,707,186 |
Proceeds from Sales | $(1,637,892) |
Change in Unrealized Appreciation/Depreciation | $(15) |
Net Realized Gain/(Loss) | $35 |
Value as of 10/31/2023 | $262,177 |
Shares Held as of 10/31/2023 | 262,177 |
Dividend Income | $3,626 |
1 | Floating/variable note with current rate and current maturity or next reset date shown. |
2 | 7-day net yield. |
3 | Also represents cost of investments for federal tax purposes. |
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 October 31, 2023, 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 | $— | $25,690,593 | $— | $25,690,593 |
Investment Company | 262,177 | — | — | 262,177 |
TOTAL SECURITIES | $262,177 | $25,690,593 | $— | $25,952,770 |
Other Financial Instruments:1 | ||||
Liabilities | $(81,997) | $— | $— | $(81,997) |
TOTAL OTHER FINANCIAL INSTRUMENTS | $(81,997) | $— | $— | $(81,997) |
1 | Other financial instruments are futures contracts. |
The following acronym(s) are used throughout this portfolio: | ||
BKNT | —Bank Notes | |
MTN | —Medium Term Note | |
REIT | —Real Estate Investment Trust | |
SOFR | —Secured Overnight Financing Rate |
Six Months Ended (unaudited) | Year Ended | Period Ended | |
10/31/2023 | 4/30/2023 | 04/30/20221 | |
Net Asset Value, Beginning of Period | $23.55 | $23.65 | $25.04 |
Income From Investment Operations: | |||
Net investment income (loss)2 | 0.26 | 0.45 | 0.14 |
Net realized and unrealized gain (loss) | (0.40) | (0.10) | (1.39) |
TOTAL FROM INVESTMENT OPERATIONS | (0.14) | 0.35 | (1.25) |
Less Distributions: | |||
Distributions from net investment income | (0.26) | (0.45) | (0.14) |
Net Asset Value, End of Period | $23.15 | $23.55 | $23.65 |
Total Return3 | (0.60)% | 1.51% | (5.01)% |
Ratios to Average Net Assets: | |||
Net expenses4 | 0.29%5 | 0.29% | 0.29%5 |
Net investment income | 2.23%5 | 1.93% | 1.51%5 |
Expense waiver/reimbursement6 | 0.10%5 | 0.10% | 0.12%5 |
Supplemental Data: | |||
Net assets, end of period (000 omitted) | $26,162 | $26,611 | $24,594 |
Portfolio turnover7 | 11% | 28% | 3% |
1 | Reflects operations for the period from December 16, 2021 (commencement of operations) to April 30, 2022. |
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 including $262,177 of investments in affiliated holdings* (identified cost $27,405,271, including $262,167 of identified cost in affiliated holdings) | $25,952,770 |
Due from broker (Note 2) | 42,000 |
Income receivable | 223,765 |
Income receivable from affiliated holdings | 709 |
Total Assets | 26,219,244 |
Liabilities: | |
Payable for variation margin on futures contracts | 1,030 |
Income distribution payable | 49,607 |
Payable for investment adviser fee (Note 5) | 6,542 |
Total Liabilities | 57,179 |
Net assets for 1,130,004 shares outstanding | $26,162,065 |
Net Assets Consist of: | |
Paid-in capital | $28,108,430 |
Total distributable earnings (loss) | (1,946,365) |
Total Net Assets | $26,162,065 |
Net Asset Value, Offering Price and Redemption Proceeds Per Share: | |
$26,162,065 ÷ 1,130,004 shares outstanding, no par value, unlimited shares authorized | $23.15 |
* | See information listed after the Fund’s Portfolio of Investments. |
Investment Income: | |
Interest | $331,139 |
Dividends received from affiliated holdings* | 3,626 |
TOTAL INCOME | 334,765 |
Expenses: | |
Investment adviser fee (Note 5) | 51,694 |
Waiver and Reimbursement: | |
Waiver/reimbursement of investment adviser fee (Note 5) | (12,606) |
Net expenses | 39,088 |
Net investment income | 295,677 |
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts: | |
Net realized loss on investments (including net realized gain of $35 on sales of investments in affiliated holdings*) | (21,148) |
Net realized gain on futures contracts | (80,800) |
Net change in unrealized depreciation of investments (including net change in unrealized appreciation of $(15) on investments in affiliated holdings*) | (215,326) |
Net change in unrealized appreciation of futures contracts | (133,421) |
Net realized and unrealized gain (loss) on investments and futures contracts | (450,695) |
Change in net assets resulting from operations | $(155,018) |
* | See information listed after the Fund’s Portfolio of Investments. |
Six Months Ended (unaudited) 10/31/2023 | Year Ended 4/30/2023 | |
Increase (Decrease) in Net Assets | ||
Operations: | ||
Net investment income | $295,677 | $486,985 |
Net realized gain (loss) | (101,948) | (311,417) |
Net change in unrealized appreciation/depreciation | (348,747) | 247,149 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | (155,018) | 422,717 |
Distributions to Shareholders test | (293,688) | (486,942) |
Share Transactions: | ||
Proceeds from sale of shares | — | 2,080,542 |
Cost of shares redeemed | — | — |
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | — | 2,080,542 |
Change in net assets | (448,706) | 2,016,317 |
Net Assets: | ||
Beginning of period | 26,610,771 | 24,594,454 |
End of period | $26,162,065 | $26,610,771 |
Fair Value of Derivative Instruments | ||
Liabilities | ||
Statement of Assets and Liabilities Location | Fair Value | |
Derivatives not accounted for as hedging instruments under ASC Topic 815 | ||
Interest rate contracts | Payable for variation margin on futures contracts | $81,997* |
* | Includes cumulative depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day’s variation margin is reported within the Statement of Assets and Liabilities. |
Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $(80,800) |
Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | |
Futures Contracts | |
Interest rate contracts | $(133,421) |
Six Months Ended 10/31/2023 | Year Ended 4/30/2023 | |
Shares sold | — | 90,000 |
Shares issued to shareholders in payment of distributions declared | — | — |
Shares redeemed | — | — |
NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | — | 90,000 |
Short-Term | Long-Term | Total |
$228,107 | $32,431 | $260,538 |
Purchases | $3,005,894 |
Sales | $3,109,946 |
Beginning Account Value 5/1/2023 | Ending Account Value 10/31/2023 | Expenses Paid During Period1 | |
Actual | $1,000 | $994.00 | $1.45 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,023.68 | $1.48 |
1 | Expenses are equal to the Fund’s annualized net expense ratio of 0.29%, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half-year period). |
Annual Evaluation of Adequacy and Effectiveness
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 December 22, 2023
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 December 22, 2023
By /S/ Lori A. Hensler
Lori A. Hensler
Principal Financial Officer
Date December 22, 2023