Federated Hermes Unveils New MDT Market Neutral ETF for Investors Amid Market Uncertainties
On September 25, 2025, Federated Hermes, Inc. (NYSE: FHI), a leader in the world of active investing, announced the launch of its latest financial product: the Federated Hermes MDT Market Neutral ETF (NYSE: MKTN). This innovative exchange-traded fund aims to deliver long-term capital appreciation while effectively limiting exposure to the volatility often found in the broader stock market.
This ETF stands out due to its unique approach, drawing from the wealth of experience that Federated MDTA LLC (the advisors behind the fund) has accumulated over three decades in the finance sector. The management team leading this ETF is composed of seasoned professionals, including Daniel Mahr, CFA, head of the MDT group; Damien Zhang, CFA, head of MDT research; Frederick L. Konopka, CFA, portfolio and trading manager; and John Paul Lewicke, research manager. Together, they utilize a quantitative model designed to balance long and short investment positions predominantly within companies that fall under the Russell 3000® Index, a benchmark that tracks the performance of the 3,000 largest U.S. publicly traded firms based on total market capitalization. By targeting investment returns that are largely uncorrelated with market direction, the fund aims to provide a strategic buffer for investors against stock market fluctuations.
As of June 30, 2025, the strategies employed by Federated Hermes MDT Advisers have managed an impressive $21.4 billion in assets across various investment vehicles, including mutual funds, institutional separate accounts, and other ETFs introduced in the prior year. It is noteworthy that Federated Hermes has been adept at managing market neutral strategies since 1997, including its existing $1.7 billion Federated Hermes MDT Market Neutral Fund.
In light of the recent unpredictable nature of financial markets, having diversification options in investment portfolios becomes essential. John B. Fisher, president and CEO of Federated Advisory Companies, emphasized the importance of strategies that not only aim to build capital over time but also work to limit volatility. "With our Federated Hermes MDT Market Neutral ETF, we are strategically expanding our offerings to meet the evolving needs of our clients—and this new ETF leverages our established, systematic investment process."
The ETF market has seen a remarkable growth trajectory, with industry-wide flows running 35% higher than the previous year’s figures during the first half of 2025. Federated Hermes has approached its entry into this space thoughtfully, focusing on developing ETF strategies that directly address client needs and adapt to current market conditions. According to Brandon Clark, ETF business director, the combination of active management's agility with the structural advantages of ETFs provides investors with an effective tool for managing vital concerns like risk exposure and tax implications.
Since launching its first ETF back in 2021, Federated Hermes has amassed over $1.2 billion in ETF assets as of August 31, 2025. Alongside the new MDT Market Neutral ETF, the firm offers several other active ETF options, including:
With its headquarters in Pittsburgh and over 2,000 employees spread across various locations, including London, New York, and Boston, Federated Hermes, Inc. is recognized as a global leader in active investment management, managing assets totaling $845.7 billion as of June 30, 2025. The company offers a broad range of investment solutions, targeting various outcomes while catering to more than 10,000 institutions and intermediaries globally. These clients encompass a variety of entities, including corporations, government bodies, insurance firms, and more. For further details, potential investors and interested parties are encouraged to visit FederatedHermes.com/us for comprehensive information about their investment offerings.
As with any investment strategy, it is imperative for investors to consider the associated risks and objectives before proceeding. The unique characteristics of the Federated Hermes MDT Market Neutral ETF, alongside its potential advantages, may provide investors with a pragmatic avenue to navigate the complexities of an unpredictable financial landscape.
This ETF stands out due to its unique approach, drawing from the wealth of experience that Federated MDTA LLC (the advisors behind the fund) has accumulated over three decades in the finance sector. The management team leading this ETF is composed of seasoned professionals, including Daniel Mahr, CFA, head of the MDT group; Damien Zhang, CFA, head of MDT research; Frederick L. Konopka, CFA, portfolio and trading manager; and John Paul Lewicke, research manager. Together, they utilize a quantitative model designed to balance long and short investment positions predominantly within companies that fall under the Russell 3000® Index, a benchmark that tracks the performance of the 3,000 largest U.S. publicly traded firms based on total market capitalization. By targeting investment returns that are largely uncorrelated with market direction, the fund aims to provide a strategic buffer for investors against stock market fluctuations.
As of June 30, 2025, the strategies employed by Federated Hermes MDT Advisers have managed an impressive $21.4 billion in assets across various investment vehicles, including mutual funds, institutional separate accounts, and other ETFs introduced in the prior year. It is noteworthy that Federated Hermes has been adept at managing market neutral strategies since 1997, including its existing $1.7 billion Federated Hermes MDT Market Neutral Fund.
In light of the recent unpredictable nature of financial markets, having diversification options in investment portfolios becomes essential. John B. Fisher, president and CEO of Federated Advisory Companies, emphasized the importance of strategies that not only aim to build capital over time but also work to limit volatility. "With our Federated Hermes MDT Market Neutral ETF, we are strategically expanding our offerings to meet the evolving needs of our clients—and this new ETF leverages our established, systematic investment process."
The ETF market has seen a remarkable growth trajectory, with industry-wide flows running 35% higher than the previous year’s figures during the first half of 2025. Federated Hermes has approached its entry into this space thoughtfully, focusing on developing ETF strategies that directly address client needs and adapt to current market conditions. According to Brandon Clark, ETF business director, the combination of active management's agility with the structural advantages of ETFs provides investors with an effective tool for managing vital concerns like risk exposure and tax implications.
Since launching its first ETF back in 2021, Federated Hermes has amassed over $1.2 billion in ETF assets as of August 31, 2025. Alongside the new MDT Market Neutral ETF, the firm offers several other active ETF options, including:
- - MDT Large Cap Core ETF (NYSE: FLCC)
- - MDT Large Cap Growth ETF (NYSE: FLCG)
- - MDT Large Cap Value ETF (NYSE: FLCV)
- - MDT Small Cap Core ETF (NYSE: FSCC)
- - Short Duration Corporate ETF (NYSE: FCSH)
- - Short Duration High Yield ETF (NYSE: FHYS)
- - Total Return Bond ETF (NYSE: FTRB)
- - U.S. Strategic Dividend ETF (NYSE: FDV)
With its headquarters in Pittsburgh and over 2,000 employees spread across various locations, including London, New York, and Boston, Federated Hermes, Inc. is recognized as a global leader in active investment management, managing assets totaling $845.7 billion as of June 30, 2025. The company offers a broad range of investment solutions, targeting various outcomes while catering to more than 10,000 institutions and intermediaries globally. These clients encompass a variety of entities, including corporations, government bodies, insurance firms, and more. For further details, potential investors and interested parties are encouraged to visit FederatedHermes.com/us for comprehensive information about their investment offerings.
As with any investment strategy, it is imperative for investors to consider the associated risks and objectives before proceeding. The unique characteristics of the Federated Hermes MDT Market Neutral ETF, alongside its potential advantages, may provide investors with a pragmatic avenue to navigate the complexities of an unpredictable financial landscape.
Topics Financial Services & Investing）
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