FHI - New actively managed divided ETF hits the market from Federated Hermes Inc.

Federated Hermes, Inc. ( NYSE: FHI ) launched the Federated Hermes U.S. Strategic Dividend ETF ( FDV ) on Wednesday which aims to focus on U.S. listed companies with dividend yields above the S&P 500 Index average.

For reference the S&P provides a roughly 1.5% dividend yield. The actively managed ETF intends to offer exposure to 40-60 stocks that possess the potential to sustain and grow their dividends.

Additionally, the fund is attached with a net 0.5% expense ratio.

John B. Fisher, CEO of Federated Advisory Companies stated : "High dividend-paying stocks have the potential for lower downside risk in challenging markets. In the current inflationary environment, the U.S. Strategic Dividend ETF provides an option for investors seeking lower volatility than the broader market."

Moreover, at some level the exchange traded fund will also compete for market share against some of Wall Streets most popular dividend funds.

Competitor Dividend ETFs: Vanguard Dividend Appreciation ETF ( VIG ), Vanguard High Dividend Yield Index ETF ( VYM ), Schwab US Dividend Equity ETF ( SCHD ), iShares Core Dividend Growth ETF ( DGRO ), and iShares Select Dividend ETF ( NASDAQ: DVY ).

In broader financial news, U.S. stocks struggled to make headway on Wednesday, after stronger than expected retail sales data came in.

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