Federated Hermes MDT Large Cap Growth ETF

Federated Hermes MDT Large Cap Growth ETF (FLCG) is an actively managed fund. It uses a computer-driven model to pick about 100 large U.S. growth stocks, mostly from the Russell 1000 Growth Index. It charges 0.39% a year, far more than index trackers such as Vanguard Russell 1000 Growth ETF (VONG) at 0.07%. It is also heavily concentrated: NVIDIA and Alphabet made up about 27% of assets as of August 31, 2026.

• Over the year to Oct 27, 2026, FLCG returned +4.1%, 5th of 9 among similar funds.
• Its worst full calendar year was 2025 (+16.9%); its best was 2025 (+16.9%).
• The deepest fall in its price history was 23% (Jan 23, 2025 to Apr 8, 2025), recovered by Jun 26, 2025.

As of Aug 31, 2026, the fund held 99 securities; the ten largest made up 57.42% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $44.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.52%, +1.11%, +4.03%.

Federated Hermes starts with the Russell 1000 Growth Index. That index tracks large U.S. companies with higher price-to-book ratios and faster expected growth. Most of FLCG's picks come from that list, and its sector mix roughly follows the index. That means big weights in technology, communication services and consumer discretionary. But the fund is not designed to match the index's holdings or returns. Under normal conditions, at least 80% of net assets go into large-cap growth stocks.

A quantitative model picks the stocks. This is a computer program that ranks companies by set rules. It uses fundamental data, such as company financials, and technical data, such as price trends. The adviser says this keeps emotion out of stock picking. The model also caps exposure to single companies and to groups of stocks that tend to move together. It trades only when the expected gain is larger than the trading cost.

Two structural points matter. First, the fund is "non-diversified," so it may put more money into a few companies than a typical fund. As of August 31, 2026, its top 10 holdings were 57% of assets, led by NVIDIA at 14.9%. Second, it trades actively: portfolio turnover was 68%, according to the prospectus filed April 27, 2026. Heavy trading can raise costs and produce more short-term capital gains. Those gains are taxed at higher rates than long-term gains.

• FLCG charges 0.39% a year, versus an average of 0.32% for the similar funds below (6th of 9, cheapest first).
• Of that, 0.49% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.12% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $52 in the first year and $640 over 10 years (assuming a 5% annual return).

Its heavy tilt toward a few large technology stocks, its above-market swings and its short track record fit a smaller add-on better than a core position.

FLCG could add a concentrated tilt toward large U.S. growth companies alongside broader holdings. Its record is short. It launched July 31, 2024, so it did not exist during the 2008, 2020 or 2022 sell-offs. Its only full calendar year, 2025, returned 16.88%. Its deepest drop, about 23%, ran from January 23 to April 8, 2025, and it was back at its peak by June 26, 2025. Its beta was 1.28 as of October 27, 2026. Beta measures how much a fund moves compared with the market, so this one swung more than the market. That is a risk for anyone who may need to sell in a downturn.

Income is minimal. The yield was 0.06% as of October 27, 2026, paid once a year. In the SEC's standard example, $10,000 invested would cost about $52 in the first year and $640 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.