ETF Evaluator: Federated Hermes Total Return Bond ETF () Follow This ETF

Federated Hermes Total Return Bond ETF Overview

Federated Hermes Total Return Bond ETF (FTRB) is an actively managed Taxable Bond Intermediate Core-Plus Bond exchange-traded fund (ETF). Federated launched the ETF in 2024.

The investment seeks to provide total return. The fund pursues its investment objective by investing primarily in U.S. dollar denominated, investment-grade, fixed-income securities. In addition, the fund may invest in high-yield, non-U.S. dollar denominated, and emerging market fixed-income securities when Federated Investment Management Company considers the risk-return prospects of those sectors to be attractive. The fund may invest up to 25% of its total assets in noninvestment-grade debt securities.

About Federated Hermes Total Return Bond ETF (FTRB)

There are 3 members of the management team with an average tenure of 2.58 years: Jerome Conner (2024), Nathan Kehm (2024) and Donald Ellenberger (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.

Federated Hermes Total Return Bond ETF has 676 securities in its portfolio. The top 10 holdings constitute 62.8% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Federated Hermes Total Return Bond ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Federated Hermes Total Return Bond ETF has 4.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -0.1% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 92.4% (87.8% domestic bond, 4.6% foreign bond and 0.0% convertible bond). Federated Hermes Total Return Bond ETF has 1.7% of the portfolio in cash.

Assets Under Management

The fund has $585 million in total assets, which is below the $2 billion average for the Intermediate Core-Plus Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

FTRB Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Federated Hermes Total Return Bond ETF expense ratio is below average compared to funds in the Intermediate Core-Plus Bond category. Federated Hermes Total Return Bond ETF has an expense ratio of 0.39%, which is 11% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Federated Hermes Total Return Bond ETF has a portfolio turnover rate of 86%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 157% for the Intermediate Core-Plus Bond category.

Recently, in the month of July 2026, Federated Hermes Total Return Bond ETF returned -1.2%, which earned it a grade of B, as the Intermediate Core-Plus Bond category had an average return of -1.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Federated Hermes Total Return Bond ETF has a trailing yield of 4.41%, which is below the 4.67% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Federated Hermes Total Return Bond ETF Grades

Year to date, the ETF has returned -0.6%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 3.3% over the past year (grade of B).

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