ETF Evaluator:
Federated Hermes MDT Market Neutral ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Equity Market Neutral Over the Last Year
| -23.3% | Equity Market Neutral () |
| -23.3% | AGF U.S. Market Neutral Anti-Beta (BTAL) |
| 0.0% | Federated Hermes MDT Market Neutral ETF (MKTN) |
| 0.0% | Roundhill Ultra Shrt Dur No Div TrgtETF (XBOX) |
Risk
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Risk
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ETF Details
Federated Hermes MDT Market Neutral ETF Overview
Federated Hermes MDT Market Neutral ETF (MKTN) is an actively managed Alternative Equity Market Neutral exchange-traded fund (ETF). Federated launched the ETF in 2025.
The investment seeks to provide long-term capital appreciation while limiting exposure to general stock market risk.
The fund manager seeks to achieve its objective by selecting long positions in publicly traded common stocks which the fund’s quantitative model predicts will achieve above-market returns, and short positions in publicly traded common stocks which the fund’s quantitative model predicts will achieve below-market returns.
About Federated Hermes MDT Market Neutral ETF (MKTN)
There are 4 members of the management team with an average tenure of 0.85 years: Frederick Konopka (2025), Daniel Mahr (2025), John Lewicke (2025) and Damien Zhang (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
Federated Hermes MDT Market Neutral ETF has 385 securities in its portfolio. The top 10 holdings constitute 24.2% 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 MDT Market Neutral ETF is part of the Alternative Strategies global asset class and is within the Alternative ETF group. Federated Hermes MDT Market Neutral ETF has -0.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 23.5% There is -0.9% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Federated Hermes MDT Market Neutral ETF has 77.4% of the portfolio in cash.
Assets Under Management
The fund has $117 million in total assets, which is below the $254 million average for the Equity Market Neutral 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.
MKTN 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 MDT Market Neutral ETF expense ratio is high compared to funds in the Equity Market Neutral category. Federated Hermes MDT Market Neutral ETF has an expense ratio of 1.94%, which is 67% higher than its category average, making the fund expense ratio grade a F. 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 MDT Market Neutral ETF has a portfolio turnover rate of 59%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 199% for the Equity Market Neutral category.
Recently, in the month of July 2026, Federated Hermes MDT Market Neutral ETF returned 5.1%, which earned it a grade of C, as the Equity Market Neutral category had an average return of 5.1%. 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 MDT Market Neutral ETF has a trailing yield of 0.00%, which is below the 2.91% category average.
The fund normally distributes its income annually 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 MDT Market Neutral ETF Grades
Year to date, the ETF has returned 6.2%, 10.4 percentage points better than the category, which translates into a grade of A.
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MKTN Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| MKTN Return (NAV) | 5.1% | 6.9% | na | na | na | na |
| MKTN Return (Price) | 5.2% | 7.1% | na | na | na | na |
| NAV +/- Price Return | -0.069% | -0.157% | na | na | na | na |
| Equity Market Neutral Avg | 5.1% | 2.1% | -23.3% | -8.1% | -4.0% | -4.3% |
| MKTN Grade (NAV) | C | A | na | na | na | na |
| +/- Category (NAV) | -0.0% | 4.8% | na | na | na | na |
| MKTN Tax-Cost Ratio | na | na | na | na | na | na |
MKTN Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| MKTN Return (NAV) | 6.2% | na | na | na | na | na | na | na | na | na | na |
| MKTN Return (Price) | 6.5% | na | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | 0.042% | na | na | na | na | na | na | na | na | na | na |
| Equity Market Neutral Avg | -4.2% | -20.6% | 13.0% | -14.8% | 20.9% | -7.3% | -13.8% | 1.7% | 15.1% | -2.8% | -4.7% |
| MKTN Grade (NAV) | A | na | na | na | na | na | na | na | na | na | na |
| +/- Category | 10.4% | na | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | -- |
| Total Assets: | $ 118 Mil |
| Share Class Assets: | $ 118 Mil |
| Turnover: | 59.0% |
| Expense Ratio: | 1.94% |
| Index Fund: | No |
| Index Tracked: | N/A |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Annually |
Management Team
| Number of Managers: 4 | |||
| Longest Tenure: 0.9 years | |||
| Average Tenure: 0.9 years | |||
| Managers (Year): Konopka Frederick (2025), Mahr Daniel (2025), Lewicke John (2025), Zhang Damien (2025) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 385 |
| % in Top 10 Holdings: | 24.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | -0.9% |
Portfolio Allocation |
|
| Domestic Stock: | 23.5% |
| Foreign Stock: | -0.9% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 77.4% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Federated |
| Phone Number: | 800-341-7400 |
| Website: | |
| Inception Date: | September 24, 2025 |
Expenses and Fees
| Expense Ratio (%): | 1.94% (Rating: High) |
| Category Average Expense Ratio (%): | 1.16% |
