Federated Hermes MDT Large Cap Core ETF

Federated Hermes MDT Large Cap Core ETF (FLCC) is an actively managed fund. It uses a computer-driven model to pick about 150 large US stocks, mostly from the Russell 1000 Index. Its 0.29% net expense ratio is well above the 0.12% average of similar funds, and its record only goes back to July 2024. Its 14.1% one-year return through October 27, 2026 led that peer group.

• Over the year to Oct 27, 2026, FLCC returned +14.1%, 1st of 9 among similar funds.
• Its worst full calendar year was 2025 (+16.6%); its best was 2025 (+16.6%).
• The deepest fall in its price history was 19.2% (Feb 13, 2025 to Apr 8, 2025), recovered by Jun 24, 2025.

As of Aug 31, 2026, the fund held 150 securities; the ten largest made up 38.6% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $7.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.87%, +2.08%, +2.40%.

FLCC is actively managed, not an index fund. Its goal is long-term capital appreciation, which means growth in share value. It must keep at least 80% of net assets in large-cap companies. The fund defines these as companies within the size range of the Russell 1000 Index, which covers the 1,000 largest US companies. Most picks come from that index, and the fund may also own REITs (real estate investment trusts, companies that own property). It does not try to match the index's holdings or returns.

The adviser picks stocks with a quantitative model, a rules-based computer process. The model scores companies on fundamental measures, such as business results, and technical measures, such as price trends. The prospectus says the aim is to maximize compound annual return while controlling risk. It does this by limiting exposure to any one company and to groups of stocks that tend to move together. Sector weights roughly follow the Russell 1000, so technology made up 34.8% of the classified portfolio as of August 31, 2026. The process ends up holding both growth and value stocks.

The model trades often, but only when a trade is expected to pay off after trading costs. Portfolio turnover was 72%. The prospectus warns that active trading raises costs and can produce short-term gains, which are taxed at higher rates. As of August 31, 2026, the fund held 99.4% in stocks and no derivatives.

• FLCC charges 0.29% a year, versus an average of 0.12% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.39% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.11% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $41 in the first year and $505 over 10 years (assuming a 5% annual return).

It owns about 150 large US companies across sectors and has moved closely with the broad market, though it costs more and has a short record.

FLCC's one-year beta was 0.98 as of October 27, 2026. Beta measures how closely a fund moves with the market, and 0.98 means it has behaved much like the broad market. The fund launched in July 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, was a 16.5% gain. Its deepest drop was 19.2%, from February 13 to April 8, 2025, and it recovered by June 24, 2025, about 2.5 months later. A retiree who had to sell near that low would have locked in losses. Future declines could also be deeper or last longer.

Income is small: the trailing yield was 0.43% as of October 27, 2026, paid once a year. Costs add up: the SEC example puts expenses at $505 on $10,000 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.