Federated Hermes (NYSE:FHI) has launched the Federated Hermes International Leaders ETF (BATS:FHIL), bringing one of its established international equity strategies to the ETF market as investors increasingly seek diversification beyond U.S. stocks. The actively managed fund aims to deliver long-term capital appreciation by investing in developed-market companies that the firm believes are trading below their intrinsic value. The launch adds to Federated Hermes’ growing ETF platform, which managed more than $2.6 billion in assets as of May 31.
Research from the firm’s Portfolio Construction Team indicates that adding international equities to a traditional stock-and-bond portfolio may enhance risk-adjusted returns. The launch aligns with the firm’s strategy of converting popular investment approaches into ETF vehicles that offer tax efficiency, transparency, liquidity and ease of use.
Key features of the Federated Hermes International Leaders ETF:
- Seeks long-term capital growth through international equity investments.
- Invests primarily in developed-market stocks of high-quality foreign companies.
- Uses deep fundamental analysis to identify businesses trading below their intrinsic value.
- Focuses on established international companies that provide products and services considered essential to everyday life.
- Maintains a high-conviction portfolio typically holding 60 to 85 stocks.
- Managed by Richard Winkowski Jr. and Dariusz Czoch, CFA.
- Net expense ratio: 0.48%
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