Federated Hermes MDT Small Cap Core ETF

Federated Hermes MDT Small Cap Core ETF (FSCC) is an actively managed fund. It uses a computer-driven model to pick about 310 small US companies, mostly from the Russell 2000 Index. After a fee waiver, its 0.36% expense ratio is close to the 0.38% average of similar funds. That is well above plain Russell 2000 funds such as RSSL, which charges 0.08%, and FSCC also trades its holdings heavily.

• Over the year to Oct 27, 2026, FSCC returned +12.3%, 6th of 7 among similar funds.
• Its worst full calendar year was 2025 (+15.3%); its best was 2025 (+15.3%).
• The deepest fall in its price history was 27.2% (Dec 4, 2024 to Apr 8, 2025), recovered by Aug 13, 2025.

As of Aug 31, 2026, the fund held 310 securities; the ten largest made up 11.8% of assets.

• Over the three months to Aug 31, 2026, investors added a net $85.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.51%, -5.77%, +0.68%.

The fund's goal is long-term growth of capital. At least 80% of its net assets go into small companies. The fund defines these as companies within the size range of the Russell 2000 Index, which ran from $6.9 million to $43.6 billion in market value as of February 28, 2026. Most stocks are picked from that index, but the fund does not try to match its makeup or returns.

Federated Hermes uses a quantitative model, which is a computer program that ranks stocks. It looks at fundamental measures, such as a company's financial results, and technical measures, such as price trends. The model can pick both growth and value stocks. It caps how much goes into any one company or into groups of stocks that tend to move together. It also trades only when the expected gain beats the trading cost. Sector weights stay close to the Russell 2000's, so financials, healthcare and industrials can be large.

The result is a widely spread portfolio. As of August 31, 2026, the fund held 310 stocks, and the 10 largest made up 11.8% of assets. American Healthcare REIT was the biggest at 2.1%, followed by Postal Realty Trust and SPS Commerce. Portfolio turnover was 74%, which means the fund trades often. That adds trading costs. In a taxable account, it can also produce short-term capital gains, which are taxed at higher rates than long-term gains.

• FSCC charges 0.36% a year, versus an average of 0.38% for the similar funds below (3rd of 7, cheapest first).
• Of that, 0.46% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.14% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).

It is a young, actively managed small-cap stock fund that moves more than the market, so it fits as a smaller add-on rather than the center of a portfolio.

FSCC adds exposure to smaller US companies, which can behave differently from the large companies that dominate most core stock funds. But it launched on July 31, 2024, so it has no record through the 2008, 2020 or 2022 sell-offs. Its deepest drop was 27.2%, from December 4, 2024 to April 8, 2025. It recovered by August 13, 2025, about four months later. Its only full calendar year, 2025, returned 15.17%. Someone forced to sell during a slump like early 2025 could lock in losses. Income is minimal: the yield was 0.24% as of October 27, 2026, paid once a year. Under the SEC's standard $10,000 example, costs total $51 after one year and $628 after 10 years. Past results don't predict future returns, and a plan should weigh the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).