Federated Hermes Debuts Ultrashort Bond ETF with Sub-1-Year Duration and Competitive Yield
FHI•Federated Hermes introduced its Ultrashort Bond ETF targeting investment-grade debt with an effective duration capped at one year, aiming to deliver a competitive yield while minimizing rate risk. The fund leverages expertise from a team managing $42.9 billion in short-duration fixed-income assets to pursue total return consistent with current income.
1. ETF Launch and Objective
Federated Hermes introduced the Ultrashort Bond ETF on June 24, 2026 to deliver total return consistent with current income by investing in a diversified portfolio of investment-grade debt securities. The fund maintains an effective duration of one year or less to minimize interest rate sensitivity while offering a competitive yield.
2. Portfolio Management
Led by senior portfolio managers Nicholas Tripodes, Daniel Mastalski and Bradley Payne, the ETF leverages active sector allocation, security selection and interest-rate positioning within Federated Hermes’ established fixed-income framework. The team manages $42.9 billion of short-duration fixed-income assets as of March 31, 2026 to pursue diversified sources of alpha.
3. Firm's ETF Suite and AUM
The new ETF expands Federated Hermes’ growing ETF lineup, which oversees more than $2.6 billion in ETF assets as of May 31, 2026. Federated Hermes manages $907.1 billion in total assets under management and offers equity, fixed-income, alternative and multi-asset solutions to over 11,000 institutional clients globally.
