FLCV ETF Explained: Returns, Expense Ratio, Holdings, and Alternative ETFs
The Federated Hermes MDT Large Cap Value ETF (FLCV) is an actively managed fund that uses a quantitative model to pick undervalued stocks from the U.S. large caps included in the Russell 1000 Value Index. This guide also covers the outlook, the quarterly dividend schedule, and alternative related products.
SubscribeWhat Is the Federated Hermes MDT Large Cap Value ETF?
This is an active ETF that uses a quantitative model to actively select undervalued large-cap stocks, focusing on constituents of the Russell 1000 Value Index.
It suits investors who want diversified exposure to U.S. large-cap value stocks that are undervalued relative to the market average.
The ETF is managed by Federated Hermes using an active management approach.
How Does the Federated Hermes MDT Large Cap Value ETF Invest?
| Item | Details |
|---|---|
| Benchmark Index | Based on the Russell 1000 Value Index (actively managed) |
| Management Style | Active (quantitative model-based stock selection) |
| Rebalancing Frequency | Regular rebalancing |
| Dividend Frequency | Quarterly dividend |
| Total Expense Ratio | 0.32% |
From among the large-cap value stocks included in the Russell 1000 Value Index, the fund actively picks stocks with undervaluation characteristics using a quantitative model that combines fundamental and technical variables. It differs from passive value ETFs in that it does not replicate the index as is.
- Quantitative model-based stock selection
- Concentrated large-cap value portfolio
Federated Hermes MDT Large Cap Value ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $231.3M, and the total expense ratio is 0.32% per year.
Federated Hermes MDT Large Cap Value ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund broadly follows the trends of the large-cap value category, but depending on the results of the quantitative model's stock selection, it may move somewhat differently from peer index-tracking products, and its volatility may also differ.
As an active ETF with a relatively short track record since launch, it is at an early stage in which fund flows are gradually building alongside investor demand for large-cap value stocks.
Federated Hermes MDT Large Cap Value ETF Pros and Cons
Its strength is active stock selection based on a quantitative model, while its drawbacks are a shorter track record and somewhat higher fees than passive large-cap value ETFs.
💪 Key Strengths
⚠️ Points to Watch
Federated Hermes MDT Large Cap Value ETF Alternative ETFs and Related Products
Products shown in the table such as VTV, IWD, and IVE are passive large-cap value ETFs that track Russell or S&P value indexes directly and tend to carry low fees, while some, such as VBR, narrow the focus to small-cap value stocks. Unlike these, this product uses active management with a quantitative model, so its approach is different. In addition, a product such as SPYV can be considered as a dividend-oriented alternative in the same large-cap value category.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 VTV | Vanguard Morningstar Value ETF | $228.57 | +0.2% | $196.0B | 0.03% | 1.82% | +23.1% |
 IWD | iShares Russell 1000 Value ETF | $259.36 | +0.3% | $83.2B | 0.18% | 1.36% | +26.8% |
 IVE | iShares S&P 500 Value ETF | $239.80 | +0.1% | $50.8B | 0.18% | 1.51% | +14.8% |
 SPYV | State Street SPDR Portfolio S&P 500 Value ETF | $64.22 | +0.1% | $38.9B | 0.04% | 1.65% | +14.7% |
 VBR | Vanguard Morningstar Small-Cap Value ETF | $246.05 | +1.1% | $37.0B | 0.05% | 1.8% | +19.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| AAPL | Apple Inc | 0.06% | $338.32 | -1.8% | $4.94T | 38.8 | 0.34% |
| AMZN | Amazon.com Inc | 0.06% | $245.63 | +2.2% | $2.65T | 19.9 | - |
| GOOG | Alphabet Inc | 0.05% | $278.04 | -0.1% | $3.41T | 14.5 | 0.31% |
| GOOGL | Alphabet Inc | 0.05% | $278.99 | -0.3% | $3.40T | 14.6 | 0.31% |
| MSFT | Microsoft Corp | 0.04% | $507.12 | -2.8% | $3.77T | 26.5 | 0.76% |
| MU | Micron Technology Inc | 0.04% | $833.59 | -5.8% | $943.1B | 11.2 | 0.09% |
| ABBV | Abbvie Inc | 0.03% | $288.84 | -2.0% | $510.4B | 49.6 | 2.37% |
| TRV | Travelers Companies Inc | 0.05% | $398.80 | +0.7% | $81.7B | 10.4 | 1.22% |
| FISV | Fiserv Inc | 0.03% | $51.93 | +3.8% | $27.6B | 10.0 | - |
Federated Hermes MDT Large Cap Value ETF Investor Checkpoints
Here are the points to review before investing in FLCV. Because it is an actively managed ETF, it is worth examining its management strategy, cost structure, and track record together.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the cost difference versus passive peer products | Needs verification |
| 📊 Management Style | Understand the quantitative model-based active selection | Active management maintained |
| 💰 Dividend Frequency | Check the quarterly dividend schedule | Quarterly dividend maintained |
| 📈 Track Record | Consider the relatively short track record | Track record still building |
The quantitative model's stock selection results may diverge from peer index products, and given the nature of the value style, the fund may show relative weakness when growth stocks are strong.
It suits investors who want to invest in large-cap value stocks through quantitative model-based active management, and if you need a low-fee passive alternative, you can also compare index-tracking products such as VTV and IWD.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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