Fund Evaluator:

Federated Hermes Max-Cap Index Svc Overview

Federated Hermes Max-Cap Index Svc (FMXSX) is a passively managed U.S. Equity Large Blend fund. Federated launched the fund in 1993.

The investment seeks to provide investment results that generally correspond to the aggregate price and performance of publicly traded common stocks comprising the Standard & Poor's 500 Index. The fund invests its assets primarily in common stocks included in the Standard & Poor's 500 Index. The index is a broad-based market index that measures the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. It may invest in derivative contracts (such as, for example, futures contracts), to implement its investment strategies.

About Federated Hermes Max-Cap Index Svc (FMXSX)

There are 2 members of the management team with an average tenure of 11.84 years: Ian Miller (2012), Damian McIntyre (2016). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. Federated Hermes Max-Cap Index Svc has 486 securities in its portfolio. The top 10 holdings constitute 38.0% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Federated Hermes Max-Cap Index Svc is part of the Equity global asset class and is within the U.S. Equity fund group. Federated Hermes Max-Cap Index Svc has 0.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 95.9%. There is 0.5% 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 Max-Cap Index Svc has 3.6% of the portfolio in cash.

Assets Under Management

The fund has $67 million in total assets, which is below the $6 billion average for the Large Blend 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.

FMXSX 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 Max-Cap Index Svc expense ratio is above average compared to funds in the Large Blend category. Federated Hermes Max-Cap Index Svc has an expense ratio of 0.67%, which is 18% 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 Max-Cap Index Svc has a portfolio turnover rate of 31%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of July 2026, Federated Hermes Max-Cap Index Svc returned 0.1%, which earned it a grade of C, as the Large Blend category had an average return of 0.4%. 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 funds in that category.

Federated Hermes Max-Cap Index Svc has a trailing yield of 0.54%, which is below the 0.56% category average. The fund normally distributes its income quarterly 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 Max-Cap Index Svc Grades

Year to date, the fund has returned 10.0%, 0.7 percentage points better than the category, which translates into a grade of C. The fund has returned 19.3% over the past year (grade of B), 18.7% over the past three years (grade of B) and 12.2% per year over the past five years (grade of B) and 14.4% per year over the past 10 years (grade of B).

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