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FDV - ETF AI Analysis

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FDV

Federated Hermes U.S. Strategic Dividend ETF (FDV)

Rating:72Outperform
Price Target:
FDV, the Federated Hermes U.S. Strategic Dividend ETF, earns a solid overall rating thanks to several high-quality dividend payers like Texas Instruments, Amgen, and Paychex, which show strong financial performance, positive earnings calls, and supportive long-term growth initiatives. These strengths are partly offset by holdings such as WEC Energy Group and Amdocs, where bearish technical trends and growth or cash flow challenges weigh on the fund, and by some names facing potential overvaluation, creating a key risk if market conditions turn less favorable.
Positive Factors
Solid Recent Performance
The ETF has shown steady gains so far this year and in recent months, indicating positive momentum.
Broad Sector Diversification
Holdings are spread across many sectors such as utilities, financials, health care, consumer defensive, technology, and energy, which helps reduce reliance on any single industry.
Healthy Fund Size
The fund manages a sizable pool of assets, which can support liquidity and trading efficiency for investors.
Negative Factors
Mixed Performance Among Top Holdings
Several of the largest positions have been weak or lagging this year, which can drag on overall returns even as others perform strongly.
High U.S. Concentration
With almost all assets invested in U.S. companies, the fund offers little geographic diversification and is heavily tied to the U.S. market.
Moderate Expense Ratio
The fund’s fees are not especially low for an ETF, which can slightly reduce net returns over time compared with cheaper alternatives.

FDV vs. SPDR S&P 500 ETF (SPY)

FDV Summary

Federated Hermes U.S. Strategic Dividend ETF (FDV) is a U.S.-focused fund that aims to pay investors steady income by owning companies with strong dividend payments instead of tracking a specific index. It holds a mix of sectors like utilities, financials, health care, and energy, with well-known names such as Chevron and AbbVie in the portfolio. Someone might consider this ETF to seek regular income plus potential long-term growth from solid, established companies. A key risk is that dividend-paying stocks can still fall in value and will go up and down with the overall stock market.
How much will it cost me?The Federated Hermes U.S. Strategic Dividend ETF (FDV) has an expense ratio of 0.50%, meaning you’ll pay $5 per year for every $1,000 invested. This is slightly higher than average because it is actively managed, focusing on selecting high-dividend U.S. stocks with strong fundamentals. Active management typically involves more research and decision-making, which can increase costs.
What would affect this ETF?The Federated Hermes U.S. Strategic Dividend ETF could benefit from stable or declining interest rates, which often make dividend-paying stocks more attractive, as well as continued strength in defensive sectors like Utilities and Health Care that dominate its portfolio. However, rising interest rates or economic uncertainty could negatively impact dividend-paying companies, particularly in sectors like Real Estate and Financials, which are sensitive to borrowing costs and market volatility.

FDV Top 10 Holdings

FDV leans heavily into classic dividend payers, with a clear tilt toward U.S. financials, utilities, and defensives rather than flashy growth names. Texas Instruments has been the star of the show, with rising momentum that gives the fund a tech-powered tailwind, while Chevron and Prologis are also pulling their weight with steady, income-friendly gains. On the flip side, Paychex and AbbVie have been more mixed, occasionally losing steam and dulling overall returns. With all holdings U.S.-based, this ETF is very much a homegrown, income-first story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Paychex4.21%$33.26M$34.75B-37.86%
77
Outperform
AbbVie3.86%$30.50M$381.10B17.70%
66
Neutral
PNC Financial3.72%$29.40M$88.04B27.59%
71
Outperform
US Bancorp3.51%$27.75M$85.11B27.69%
76
Outperform
Chevron3.45%$27.22M$381.25B40.20%
71
Outperform
Prologis3.12%$24.66M$138.90B40.23%
76
Outperform
Amgen3.01%$23.81M$183.12B24.90%
77
Outperform
Texas Instruments2.93%$23.11M$281.41B75.39%
78
Outperform
WEC Energy Group2.80%$22.10M$36.94B6.21%
67
Neutral
Philip Morris2.77%$21.85M$294.55B6.06%
61
Neutral

FDV Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
30.87
Positive
100DMA
30.62
Positive
200DMA
29.32
Positive
Market Momentum
MACD
0.11
Negative
RSI
63.98
Neutral
STOCH
96.55
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FDV, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 31.10, equal to the 50-day MA of 30.87, and equal to the 200-day MA of 29.32, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 63.98 is Neutral, neither overbought nor oversold. The STOCH value of 96.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FDV.

FDV Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$759.94M0.50%
72
Outperform
$236.27M0.59%
68
Neutral
$230.55M0.49%
69
Neutral
$184.43M0.35%
71
Outperform
$70.61M0.35%
72
Outperform
$38.50M0.40%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FDV
Federated Hermes U.S. Strategic Dividend ETF
31.68
5.10
19.19%
TBG
TBG Dividend Focus ETF
ELCV
Eventide High Dividend ETF
HIDV
AB US High Dividend ETF
FDIV
MarketDesk Focused U.S. Dividend ETF
PAYR
Federated Hermes Enhanced Income ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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