Federated Hermes, a Pittsburgh-based investment management firm with $715 billion in assets under management, has launched a fixed-income ETF that invests in a wide range of bonds.
The Federated Hermes Total Return Bond ETF is an actively managed ETF designed to provide total return by investing in a broad mix of bond sectors that the portfolio management team believes will benefit from the expected coming changes in economic and market conditions, the firm said.
The ETF invests primarily in U.S. government, mortgage-backed and investment-grade corporate fixed income with additional exposure to sectors such as high-yield and emerging-markets debt, Federated Hermes said.
“During times of market volatility, fixed-income securities can be an important part of a diversified portfolio,” said John B. Fisher, president and chief executive officer of Federated Advisory Companies, in a statement. “By offering the rigorously vetted approach used for our recognizable fixed-income products in an ETF structure, Federated Hermes remains well poised to deliver on investment client mandates in a variety of formats.”