FSCC ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs
The Federated Hermes MDT Small Cap Core ETF (FSCC) is a core product that uses an active quantitative strategy to select and hold a broad range of US small-cap stocks. The key points of comparison against passive small-cap ETFs are management fees, dividends, and the active selection approach.
SubscribeWhat Is the Federated Hermes MDT Small Cap Core ETF?
This is an actively managed core ETF that targets the broad US small-cap market. It invests most of its net assets in common stocks of small companies, using a quantitative model to select holdings and pursue long-term capital growth.
It suits long-term investors who want diversified exposure to US small caps and prefer active stock selection over a passive index approach.
It is an ETF run with an active management approach by Federated Hermes.
How Does the Federated Hermes MDT Small Cap Core ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | Actively managed relative to a benchmark (small-cap core) |
| Management Style | Active (quantitative model selection) |
| Rebalancing Frequency | At the managers' discretion (as needed) |
| Dividend Frequency | Quarterly dividends |
| Total Expense Ratio | 0.36% |
| Fund Manager | Federated Hermes |
Using Federated Hermes' MDT quantitative strategy, the fund selects and holds a broad range of common stocks of US small companies. It invests a substantial portion of its net assets in small caps, and the management team actively adjusts the portfolio based on model signals, taking a core approach that pursues long-term capital growth.
- Small-cap stock selection based on a quantitative model
- Core exposure that does not lean toward either value or growth
Federated Hermes MDT Small Cap Core ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $455.4M, and the total expense ratio is 0.36% per year.
Because of its active management, the fee burden is somewhat higher than that of index-tracking passive small-cap ETFs, and the fund seeks to differentiate itself through stock selection.
Federated Hermes MDT Small Cap Core ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund moves in line with the broader small-cap market and tends to react more sensitively than large caps to the economic cycle and the interest rate environment. Recent trends show volatility as small-cap risk appetite shifts.
In the small-cap category, inflows tend to increase when risk appetite recovers, while outflows appear when concerns about an economic slowdown rise. As an active small-cap ETF, its fund flows can vary with market conditions.
Federated Hermes MDT Small Cap Core ETF Pros and Cons
Its strengths are active stock selection and core small-cap diversification, while its weaknesses are a higher fee burden than passive funds and the volatility typical of small caps.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Federated Hermes MDT Small Cap Core ETF
Of the tickers shown in the table, HELO and FHEQ are hedged equity products, INFO is a large-cap core fund, and CBOX and CAOS are options and tail-risk products. Their management styles and fee structures differ greatly from this fund's active small-cap core profile. Directly comparable alternatives in the same US small-cap category include passive ETFs such as IWM, VB, and IJR, which track broad small-cap indexes at low fees. They offer low-cost core options with exposure to the overall small-cap market without active selection.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 HELO | JPMorgan Hedged Equity Laddered Overlay ETF | $68.86 | -1.2% | $4.9B | 0.50% | 0.57% | +4.9% |
 CBOX | Calamos Tax-Aware Collateral ETF | $102.25 | +0.1% | $1.8B | 0.14% | - | - |
 FHEQ | Fidelity Hedged Equity ETF | $33.06 | -1.3% | $1.0B | 0.48% | 0.6% | +6.6% |
 INFO | Harbor PanAgora Dynamic Large Cap Core ETF | $27.73 | -1.9% | $958.4M | 0.35% | 0.31% | +13.5% |
 SFTY | Horizon Managed Risk ETF | $31.40 | -1.5% | $812.3M | 0.77% | 0.17% | +12.1% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 AHR | American Healthcare REIT Inc | 0.05% | $53.52 | +1.1% | $11.7B | 79.4 | 1.89% |
| BE | Bloom Energy Corp | 0.02% | $203.17 | -8.6% | $60.1B | 125.8 | - |
 PRIM | Primoris Services Corp | 0.02% | $72.77 | -3.8% | $3.9B | 28.6 | 0.44% |
 BTSG | BrightSpring Health Services Inc | 0.01% | $66.89 | +11.1% | $13.2B | 50.0 | - |
 MIRM | Mirum Pharmaceuticals Inc | 0.01% | $85.00 | -1.6% | $5.5B | - | - |
 JXN | Jackson Financial Inc | 0.01% | $134.93 | -0.8% | $9.1B | 185.4 | 2.67% |
 FCSH | Federated Hermes Short Duration Corporate ETF | 0.01% | $23.81 | -0.3% | $0.0M | - | 4.29% |
 POWL | Powell Industries Inc | 0.01% | $156.26 | -7.3% | $5.7B | 29.9 | 0.68% |
 BKU | BankUnited Inc | 0.01% | $43.00 | -0.9% | $3.1B | 11.6 | 3.06% |
Federated Hermes MDT Small Cap Core ETF Investor Checkpoints
These are points to review before investing in FSCC. Because it is an active small-cap ETF, it is wise to check in advance the fee structure, the volatility typical of small caps, and differences in management style.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the fee gap versus passive small-cap ETFs | Needs checking |
| 📊 Management Style | Understand the active quantitative selection approach | Active management |
| 📉 Small-Cap Volatility | Whether you can tolerate volatility higher than large caps | Tolerance required |
| 💱 Exchange Rate | Impact on returns converted into Korean won | Not currency hedged |
The volatility and liquidity risk typical of small caps are the main variables, and active management fees can have a cumulative effect on long-term returns. Small-cap weakness can stand out during an economic slowdown.
It is a suitable choice for long-term investors who want active exposure to US small caps. To reduce costs, you can consider passive small-cap ETFs such as IWM, VB, and IJR, and if you want active selection, you can consider FSCC.
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 June 11, 2026.
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