Federated Hermes Ultrashort Bond ETF(CBOE:FUSD)

FUSD is an actively managed portfolio of fixed-income securities, aiming to optimize the balance between total return and risk. The ETFs dollar-weighted average effective duration is limited to one year or less, with an expected average effective maturity of 18 months or less. More than 50% of the portfolio is allocated to investment-grade instruments, including asset-backed securities, mortgage-backed securities, corporate debt, and trade finance instruments, while permitting up to 35% exposure to non-investment-grade, or junk, bonds. Holdings are allocated across sectors and leverages foreign securities, derivative contracts, hybrid instruments, and Collateralized Mortgage Obligations (CMOs) for hedging purposes. The ETF invests in US government securities, such as Ginnie Mae securities, as well as government-sponsored entities such as Freddie Mac and Fannie Mae. Investments may also be made directly in other Federated funds. Derivatives may also be used to manage risk.