FLCV: FEDERATED HERMES MDT LARGE CAP VALUE ETF
ETF Education Report: Federated Hermes MDT Large Cap Value ETF (FLCV)
What this ETF is trying to do
The Federated Hermes MDT Large Cap Value ETF (FLCV) is an exchange-traded fund that focuses on large companies. Based on its name, it looks for "value" stocks, which are often companies that may be priced lower than what they are worth. This ETF holds a variety of different companies to spread out its investment.
What the numbers show
The current price of one share is $36.92. Looking back at history, the estimated price from roughly one year ago was $30.23.
It is important to understand two different types of returns:
• Price Return: This measures only how much the share price changed. The one-year price return was approximately 22.11%, and the year-to-date (YTD) price return was approximately 18.68%.
• Total Return: This includes both the price change and any cash distributions paid out. The one-year total return was approximately 23.12%, while the YTD total return was approximately 18.68%.
Income and distribution explanation
Some investors look for ETFs that pay them cash, known as distributions. This ETF has a distribution yield of approximately 0.70%. The trailing distributions were $0.2568. The data shows that these payments happen irregularly or less frequently, with one payout recorded in the last 12 months.
NAV erosion explanation
"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases significantly over time. StockValueFinder uses an "erosion-risk score" to measure this risk. For FLCV, the erosion score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in this portfolio (note that this is a partial list):
• Apple Inc (6.33%)
• Amazon.com Inc (5.74%)
• Microsoft Corp (4.28%)
• AbbVie Inc (3.04%)
• The Travelers Companies Inc (1.96%)
• State Street Corp (1.92%)
• Fiserv Inc (1.90%)
• JPMorgan Chase & Co (1.79%)
• Costco Wholesale Corp (1.75%)
• Prudential Financial Inc (1.74%)
Please remember that holdings can change over time.
Pros
• The ETF has shown positive price returns over the last year and year-to-date.
• The erosion-risk measurement is rated as "good."
Cons
• The distribution yield is relatively low.
• Distributions are irregular rather than being paid on a steady, predictable schedule.
Beginner takeaway
When looking at an ETF like FLCV, it is helpful to distinguish between the share price moving up and the cash being paid out to investors. This ETF has seen its share price increase over the past year, and its total return is slightly higher than its price return because of distributions. Always remember that a high yield can sometimes be misleading, and you should look at the total return to see how the investment performed overall.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | APPLE INC | AAPL | 6.28% |
| 2 | AMAZON.COM INC | AMZN | 5.95% |
| 3 | MICROSOFT CORP | MSFT | 4.45% |
| 4 | ABBVIE INC | ABBV | 3.08% |
| 5 | INTUIT INC | INTU | 2.17% |
| 6 | THE TRAVELERS COMPANIES INC | TRV | 2.00% |
| 7 | COSTCO WHOLESALE CORP | COST | 1.94% |
| 8 | STATE STREET CORP | STT | 1.87% |
| 9 | FISERV INC | FISV | 1.85% |
| 10 | JPMORGAN CHASE & CO | JPM | 1.75% |