The new fund focuses on high-quality firms in developed markets, seeking out stocks that appear to trade below their intrinsic value. Richard Winkowski, Jr. and Dariusz Czoch, who oversee the firm's $1.5 billion International Core/Value Fund, will manage the portfolio. The strategy utilizes a concentrated selection of 60 to 85 companies, a departure from broader index-tracking funds that the firm believes can improve risk-adjusted returns for diversified portfolios.

Paul A. Uhlman, president of the Federated Advisory Companies, noted that incorporating international equities into a traditional stock-and-bond mix can potentially stabilize performance. Brandon Clark, ETF business director at the firm, added that the launch is a response to investor demand for popular strategies delivered through the ETF vehicle. As of May 31, 2026, Federated Hermes managed over $2.6 billion in ETF assets, part of a global investment footprint overseeing more than $907 billion.