The folks at a publicly traded, 2,000-employee, $845.7-billion-AUM* asset manager from Pennsylvania are further expanding their $1.2 billion-AUM** ETF lineup.

Last week, John Fisher, president and CEO of Federated Hermes, Inc.'s [profile] Federated Advisory Companies, and Brandon Clark, ETF businss director at Federated Hermes, unveiled the launch of the Federated Hermes Enhanced Income ETF (PAYR on the Cboe BZX). Pittsburgh-based Federated Equity Management Company of Pennsylvania serves as investment advisor to the new fund.

PAYR comes with an expense ratio of 40 basis points (which bakes in a 10bps fee waiver promised through September 1, 2026). The new ETF now has about $2.462 million in AUM.

The six-person PM team powering PAYR includes:

Deborah Bickerstaff, portfolio manager;

Jared Hoff, senior PM;

Damian McIntyre, senior PM;

Dana Meissner, senior PM;

Daniel Peris, senior PM; and

Michael Tucker, senior PM.

Fisher describes PAYR as "combining a high-quality-dividend portfolio with an actively managed options overlay."

"It provides the opportunity to diversify an enhanced income allocation or to replace a portion of the bond sleeve for investors shifting their allocations as they near retirement," Fisher states.

Clark puts the launch of PAYR in the context of the Federated Hermes team's dedication "to meeting investor demand by offering ETF versions of [the firm's] flagship strategies."

"Federated Hermes Enhanced Income ETF offers risk-conscious, high-cash flow-seeking investors access to the ETF vehicle's tax efficiency, transparency, liquidity and ease of use," Clark states.

PAYR is an actively managed series of Federated Hermes ETF Trust. The new fund's other service providers include:

the Bank of New York Mellon (BNY Mellon) as custodian, dividend disbursing agent, and transfer agent;

Citibank, N.A. as securities lending agent;

Federated Administrative Services (FAS) as administrator;

Federated Securities Corp. as distributor;

K&L Gates LLP as counsel;

Kirkland & Ellis LLP as counsel; and

KPMG LLP as independent accounting firm.

*As of June 30, 2025.

**As of September 30, 2025. 

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