Federated Hermes launches active, short-duration fixed-income ETF

• Federated Hermes (FHI) strategically expands ETF lineup to meet client interests and objectives in a wide range of market conditions
• Federated Hermes Ultrashort Bond ETF aims to deliver attractive income while maintaining a conservative risk profile

PITTSBURGH, June 24, 2026 /PRNewswire/ -- Federated Hermes, Inc. (FHI) , a global leader in active investing, today introduced Federated Hermes Ultrashort Bond ETF , designed for investors seeking higher yields in an uncertain interest rate environment.

Federated Hermes Ultrashort Bond ETF pursues its objective of providing total return consistent with current income by investing primarily in a diversified portfolio of investment-grade debt securities. The ETF seeks to offer a competitive and attractive yield while minimizing interest rate risk by limiting its effective duration to one year or less.

The portfolio management team ? led by Nicholas Tripodes, CFA, senior portfolio manager and head of the Low Duration Multisector Group; Daniel Mastalski, CFA, portfolio manager; and Bradley Payne, portfolio manager ? actively adjusts positioning as market conditions evolve, drawing on the collective insights of Federated Hermes' (FHI) fixed income leadership and sector specialists. Portfolio construction is guided by the firm's established fixed-income framework, which emphasizes sector allocation, security selection and interest-rate positioning, seeking diversified sources of alpha rather than reliance on any single market factor. Federated Hermes (FHI) manages $42.9 billion in short-duration fixed-income assets as of March 31, 2026.

"We offer a comprehensive suite of investment solutions across the full investment horizon to help meet the evolving needs of our clients," said Paul A. Uhlman, president and chief executive officer of the Federated Advisory Companies. "Through active allocation across high?quality, short?term fixed-income sectors, Federated Hermes Ultrashort Bond ETF offers a disciplined step beyond traditional cash alternatives while avoiding long?duration risk."

"With more than 55 years of fixed-income investing experience, Federated Hermes (FHI) is known for disciplined credit research, management stability and a repeatable investment process," said Brandon Clark, ETF business director at Federated Hermes (FHI). "Federated Hermes Ultrashort Bond ETF reflects that long history of short-duration fixed-income strategies with the outperformance potential, tactical flexibility, tax efficiency, transparency, liquidity and ease of use of active ETFs."

Federated Hermes (FHI) offers actively managed ETFs designed to pursue growth, diversification or income generation for strategic or tactical needs. As of May 31, 2026, Federated Hermes (FHI) manages more than $2.6 billion in ETF assets.

Federated Hermes, Inc. (FHI) is a global leader in active investment management, with $907.1 billion in assets under management, as of March 31, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes (FHI) has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.

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Investors should carefully consider the ETF's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us at 1-800-341-7400 or visit FederatedHermes.com/us. Please carefully read the summary prospectus or the prospectus before investing.

Past performance is no guarantee of future results.

ETFs are subject to risks and fluctuate in value.

Diversification does not assure a profit nor protect against loss.

Duration is a measure of a security's price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in interest rates than securities of shorter durations.

Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices. In addition, fixed-income investors should be aware of other risks such as credit risk, inflation risk, call risk and liquidity risk.

The fund is a new fund that recently commenced operations. New funds have limited operating histories for investors to evaluate and new funds may not attract sufficient assets to achieve investment and trading efficiencies.

ETFs are generally more tax efficient than traditional mutual funds due to their structure. When investors redeem shares, ETFs can do so in-kind, meaning they exchange shares for underlying assets without triggering capital gains taxes for remaining investors. ETFs often distribute fewer capital gains to investors compared to mutual funds, leading to lower tax liabilities.

ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. NAVs are calculated using prices as of the end of regular trading on the New York Stock Exchange (normally 4:00 PM Eastern Time). Recent information, including information about the fund's NAV, market price, premiums and discounts, and bid-ask spreads, is included on the fund's website at FederatedHermes.com/us.

The fund is not a "money market" mutual fund. Some money market mutual funds attempt to maintain a stable net asset value through compliance with relevant Securities and Exchange Commission (SEC) rules. The fund is not governed by those rules, and its shares will fluctuate in value.

Alpha is a measure of excess return.

The yield curve is a graph showing the comparative yields of securities in a particular class according to maturity.? Securities on the long end of the yield curve have longer maturities.

There is no guarantee that active ETFs will outperform passive ETFs and they may underperform. Active ETFs typically have higher fees than passive ETFs, which can reduce performance.

Federated Securities Corp.is Distributor of the Federated Hermes Funds.

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SOURCE Federated Hermes, Inc. (FHI)