FDV - ETF AI Analysis

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

Rating:72Outperform

Price Target:―

FDV, the Federated Hermes U.S. Strategic Dividend ETF, appears to be a solid, quality-focused fund supported by strong dividend-oriented holdings like Paychex, Amgen, Morgan Stanley, and Prologis, which benefit from healthy financial performance, positive earnings calls, and generally supportive technical or strategic outlooks. Its rating is held back somewhat by weaker names such as Evergy and Philip Morris, where revenue growth, cash flow, leverage, and bearish technical trends raise concerns. The main risk factor is its meaningful exposure to a few companies facing financial and technical headwinds, which could add volatility despite the fund’s overall strength.

Positive Factors

Solid Recent Performance

The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.

Strong Top Holdings

Most of the largest positions, including major financial, energy, and utility names, have delivered strong or steady performance, supporting the fund’s returns.

Diversified Defensive Sector Mix

Significant exposure to utilities, consumer defensive, health care, and real estate can provide a more stable income-oriented profile compared with more growth-heavy funds.

Negative Factors

Moderately High Expense Ratio

The fund’s expense ratio is on the higher side for an ETF, which can gradually reduce net returns for long-term investors.

Heavy U.S.-Only Exposure

With almost all assets in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. market and economy.

Sector Concentration in Utilities and Financials

Large weights in utilities and financials mean the fund could be more sensitive to interest rate changes and sector-specific downturns.

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

AUM605.87M

RegionNorth America

Expense Ratio0.50%

Beta0.48

IssuerFederated Hermes

Inception DateNov 16, 2022

Dividend Yield2.9%

Asset ClassEquity

Index TrackedNo Underlying Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume173,099

30 Day Avg. Volume200,725

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

32.75

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering49

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 stocks with relatively high dividend payments. It doesn’t track a set index, but instead selects a mix of solid, dividend-paying companies across many sectors, including utilities, banks, health care, and consumer staples. Well-known holdings include Chevron and Amgen. Someone might invest in FDV for a combination of income and potential long-term growth, while getting diversification across many industries. A key risk is that stock prices and dividend payments can go up and down with the 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 steady, dividend-rich corners of the U.S. market, with big roles for banks, utilities, and defensive names. Financials like PNC Financial and Morgan Stanley have been rising and act as key engines for the fund, while Chevron’s recent strength in energy adds extra horsepower. On the defensive side, Amgen and Philip Morris are quietly pulling their weight with solid, if unspectacular, gains. The main drag comes from Paychex, which has been losing steam lately, reminding investors that even income-focused portfolios aren’t risk-free.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
PNC	PNC Financial	4.12%	$24.36M	$88.78B	17.51%	71 Outperform
USB	US Bancorp	3.80%	$22.47M	$89.16B	23.69%	76 Outperform
CVX	Chevron	3.29%	$19.43M	$350.41B	16.20%	71 Outperform
AMGN	Amgen	3.13%	$18.49M	$185.60B	17.15%	77 Outperform
PAYX	Paychex	3.03%	$17.89M	$36.78B	-35.02%	77 Outperform
PLD	Prologis	2.87%	$16.95M	$123.32B	11.47%	76 Outperform
WEC	WEC Energy Group	2.81%	$16.60M	$35.73B	13.14%	67 Neutral
TXN	Texas Instruments	2.80%	$16.54M	$204.45B	24.73%	78 Outperform
EVRG	Evergy	2.79%	$16.51M	$17.49B	20.98%	62 Neutral
PM	Philip Morris	2.69%	$15.91M	$280.10B	35.75%	61 Neutral

FDV Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

28.96

Positive

100DMA

28.55

Positive

200DMA

27.83

Positive

Market Momentum

MACD

0.44

Negative

RSI

78.54

Negative

STOCH

95.06

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 29.62, equal to the 50-day MA of 28.96, and equal to the 200-day MA of 27.83, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 78.54 is Negative, neither overbought nor oversold. The STOCH value of 95.06 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
FDV	―	―	$605.87M	0.50%	―
TBG	―	―	$212.82M	0.59%	―
ELCV	―	―	$162.29M	0.49%	―
HIDV	―	―	$145.48M	0.35%	―
FDIV	―	―	$72.64M	0.35%	―
DIVY	―	―	$29.29M	0.45%	―

Performance Comparison

FDV

Federated Hermes U.S. Strategic Dividend ETF

30.77

4.14

15.55%

TBG

TBG Dividend Focus ETF

―

ELCV

Eventide High Dividend ETF

―

HIDV

AB US High Dividend ETF

―

FDIV

MarketDesk Focused U.S. Dividend ETF

―

DIVY

Sound Equity 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.

Disclaimer

This 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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