The folks at a $846-billion-AUM, publicly traded asset manager in Pennsylvania are preparing to expand their lineup of eight ETFs with a dual debut.

John Christopher "Chris" Donahue Federated Hermes, Inc. President, CEO, Chairman

Today, the team at Pittsburgh-based Federated Hermes [profile] filed to launch the Federated Hermes Enhanced Income ETF (PAYR on the Cboe BZX) and the Federated Hermes MDT Market Neutral ETF (MKTN on the NYSE Arca). Per the filing, both ETFs are expected to roll out tomorrow (August 22).

Federated MDTA LLC will serve as investment advisor to MKTN. (This would be the fifth Federated Hermes ETF powered by the Boston-based MDTA team.) Federated Equity Management Company of Pennsylvania will serve as investment advisor to PAYR.

PAYR comes with an expense ratio of 40 basis points, which bakes in a 10bps fee waiver. MKTN comes with an expense ratio of 210bps, which bakes in a 13bps fee waiver. (Both waivers are promised through September 1, 2026.)

The PM team for MKTN will include four MDT advisrs investment team portfolio managers:

Frederick Konopka, trading manager;

Daniel Mahr, head of MDT;

John Paul Lewicke, research manager; and

Damien Zhang, head of MDT research.

The PM team for PAYR will include six people:

Deborah Bickerstaff, PM;

Jared Hoff, senior PM;

Damien McIntyre, senior PM;

Dana Meissner, senior PM;

Daniel Peris, senior PM; and

Michael Tucker, senior PM.

PAYR and MKTN will be diversified, actively managed series of Federated Hermes ETF Trust. The planned ETFs' other service providers will include:

Citibank, N.A. as securities lending agent;

Federated Administrative Services (FAS) as administrator;

Federated Securities Corp. as distributor;

K&L Gates LLP as counsel;

Kirkland & Ellis LLP as counsel;

KPMG LLP as independent accounting firm; and

State Street Bank and Trust Company as custodian, dividend disbursing agent, and transfer agent.

 

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