# EDGAR Filing Document

**Accession Number:** 0001849998
**File Stem:** 0001623632-26-000354
**Filing Date:** 2026-2
**Character Count:** 170150
**Document Hash:** 86be64afd9452b47193c644b6e80000d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001623632-26-000354.hdr.sgml**: 20260226

**ACCESSION NUMBER**: 0001623632-26-000354

**CONFORMED SUBMISSION TYPE**: N-CSRS

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260226

**DATE AS OF CHANGE**: 20260226

**EFFECTIVENESS DATE**: 20260226

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Federated Hermes ETF Trust
- **CENTRAL INDEX KEY:** 0001849998

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** N-CSRS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-23730
- **FILM NUMBER:** 26683661

**BUSINESS ADDRESS:**
- **STREET 1:** 4000 ERICSSON DRIVE
- **CITY:** WARRENDALE
- **STATE:** PA
- **ZIP:** 15086
- **BUSINESS PHONE:** 412-288-1900

**MAIL ADDRESS:**
- **STREET 1:** 4000 ERICSSON DRIVE
- **CITY:** WARRENDALE
- **STATE:** PA
- **ZIP:** 15086

## Series and Classes Contracts Data

### Federated Hermes Total Return Bond ETF (Series ID: S000083030)

| Class ID   | Class Name                             | Ticker Symbol   |
|:---|:---|:---|
| C000246534 | Federated Hermes Total Return Bond ETF | FTRB            |

?xml version='1.0' encoding='ASCII'? Consolidated ssr-output-EDGAR XBRL File

**United States Securities and Exchange Commission Washington, D.C. 20549**

**Form N-CSR Certified Shareholder Report of Registered Management Investment Companies**

<u>811-23730</u> (Investment Company Act File Number)

**<u>Federated Hermes ETF Trust</u>** (Exact Name of Registrant as Specified in Charter)

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

Peter J. Germain, Esquire

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: <u>2026-06-30</u>

Date of Reporting Period: <u>Six months ended 2025-12-31</u>

**Item 1.** **Reports to Stockholders**

# Federated Hermes Total Return Bond ETF
![Image](ided25571a8002f4e7f9d21b4.jpg)

# **NYSE Arca** \| FTRB

#### Semi-Annual Shareholder Report - December 31, 2025

## A Portfolio of Federated Hermes ETF Trust
This semi-annual shareholder report contains important information about the Federated Hermes Total Return Bond ETF (the "Fund") for the period of July 1, 2025 to December 31, 2025. You can find additional information at FederatedHermes.com/us/FundInformation. You can also request this information by contacting us at 1-800-341-7400, Option 4, or your financial advisor.

## What were the Fund costs for the last six months?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Fund Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Federated Hermes Total Return Bond ETF | $19 | 0.37% |

---

## Key Fund Statistics
* Net Assets$355,560,475

* Number of Investments438

* Portfolio Turnover21%

## Fund Holdings

### Top Security Types (% of Net Assets)<sup>**Footnote Reference 1**</sup>
![Group By Sector Chart](i6ea05a6224609387e4020a6c.jpg)

---

| | |
|:---|:---|
| **Value** | **Value** |
| Cash Equivalents | 1.6% |
| Collateralized Mortgage Obligations | 2.1% |
| Asset-Backed Securities | 2.6% |
| High Yield Bond Core Fund | 3.1% |
| Emerging Markets Core Fund | 3.1% |
| Project and Trade Finance Core Fund | 5.5% |
| Exchange-Traded Funds | 10.6% |
| Mortgage-Backed Securities | 15.5% |
| Corporate Bonds | 24.1% |
| U.S. Treasuries | 31.9% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| Footnote<sup>1</sup> | Reflects the pro rata portfolio composition of underlying affiliated investment companies (other than an affiliated money market fund) in which the Fund invested greater than 10% of its net assets as of the date specified above. Accordingly, the percentages of net assets shown in the table will differ from those presented on the Portfolio of Investments. |

---

#### Semi-Annual Shareholder Report
Federated Hermes Total Return Bond ETF

## Additional Information about the Fund
Additional information is available on the Fund's website at FederatedHermes.com/us/FundInformation, including its:

• prospectus • financial information • holdings • proxy voting information

CUSIP 31423L404

Q456265-A (02/26)

Federated Securities Corp., Distributor

<u>FederatedHermes.com/us</u>

&nbsp;&nbsp;&nbsp;&nbsp;© 2026 Federated Hermes, Inc.

**Item 2.** **Code of Ethics**

Not Applicable

**Item 3.** **Audit Committee Financial Expert**

Not Applicable

**Item 4.** **Principal Accountant Fees and Services**

Not Applicable

**Item 5.** **Audit Committee of Listed Registrants**

Not Applicable

**Item 6.** **Schedule of Investments**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant's Schedule of Investments is included as part of the Financial Statements filed under Item 7 of this form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not Applicable

**Item 7.** **Financial Statements and Financial Highlights for Open-End Management Companies**

**Semi-Annual Financial Statements**

**and Additional Information**

**December 31, 2025**

![](imgbef27d331.gif)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**NYSE Arca** \| FTRB<br>

------

Federated Hermes Total Return Bond ETF

------

A Portfolio of Federated Hermes ETF Trust

------

**Not FDIC Insured ▪ May Lose Value ▪ No Bank Guarantee**

------

**CONTENTS** 

---

| | |
|:---|:---|
| [Portfolio of Investments](#xx_b8f419fb-710a-4827-a901-8ad4b67d5cda_1) | [1](#xx_b8f419fb-710a-4827-a901-8ad4b67d5cda_1)  |
| [Financial Highlights](#xx_dc5267e2-6a15-4a2f-95d4-7fbe6a264ba7_1) | [15](#xx_dc5267e2-6a15-4a2f-95d4-7fbe6a264ba7_1)  |
| [Statement of Assets and Liabilities](#xx_879f9add-7df7-492c-a813-dc6c16b0b48c_1) | [16](#xx_879f9add-7df7-492c-a813-dc6c16b0b48c_1)  |
| [Statement of Operations](#xx_879f9add-7df7-492c-a813-dc6c16b0b48c_2) | [17](#xx_879f9add-7df7-492c-a813-dc6c16b0b48c_2)  |
| [Statement of Changes in Net Assets](#xx_879f9add-7df7-492c-a813-dc6c16b0b48c_3) | [18](#xx_879f9add-7df7-492c-a813-dc6c16b0b48c_3)  |
| [Notes to Financial Statements](#xx_681ed00c-79d5-4452-832a-fcd63dc34fce_1) | [19](#xx_681ed00c-79d5-4452-832a-fcd63dc34fce_1)  |
| [Evaluation and Approval of Advisory Contract](#xx_e4d912ab-9cae-4db1-9ddd-a82320912721_1) | [27](#xx_e4d912ab-9cae-4db1-9ddd-a82320912721_1) |

---

------

Portfolio of Investments

December 31, 2025 (unaudited)

---

| | | |
|:---|:---|:---|
| **Principal** <br>**Amount, Shares** <br>**or Contracts**<br>|  | **Value** |
|  | U.S. TREASURIES—31.9% |  |
|  | **U.S. Treasury Bonds—5.4%** |  |
| $300000 | United States Treasury Bond, 4.625%, 2/15/2055 | &nbsp;&nbsp; $289579 |
| 5000000 | United States Treasury Bond, 4.625%, 11/15/2045 | &nbsp;&nbsp; 4891406 |
| 14000000 | United States Treasury Bond, 4.750%, 5/15/2055 | &nbsp;&nbsp; 13786412 |
|  | TOTAL | &nbsp;&nbsp; 18967397 |
|  | **U.S. Treasury Inflation-Protected Notes—3.5%** |  |
| 10065300 | U.S. Treasury Inflation-Protected Notes, 1.125%, 10/15/2030 | &nbsp;&nbsp; 9914974 |
| 2579150 | U.S. Treasury Inflation-Protected Notes, 2.125%, 1/15/2035 | &nbsp;&nbsp; 2625741 |
|  | TOTAL | &nbsp;&nbsp; 12540715 |
|  | **U.S. Treasury Notes—23.0%** |  |
| 300 | United States Treasury Note, 0.750%, 8/31/2026 | &nbsp;&nbsp; 295 |
| 400 | United States Treasury Note, 0.875%, 9/30/2026 | &nbsp;&nbsp; 392 |
| 117800 | United States Treasury Note, 1.250%, 11/30/2026 | &nbsp;&nbsp; 115375 |
| 95500 | United States Treasury Note, 1.250%, 12/31/2026 | &nbsp;&nbsp; 93374 |
| 1250000 | United States Treasury Note, 3.375%, 9/15/2027 | &nbsp;&nbsp; 1247685 |
| 200000 | United States Treasury Note, 3.500%, 10/31/2027 | &nbsp;&nbsp; 200049 |
| 2500000 | United States Treasury Note, 3.500%, 10/15/2028 | &nbsp;&nbsp; 2497575 |
| 900000 | United States Treasury Note, 3.500%, 9/30/2029 | &nbsp;&nbsp; 895922 |
| 200000 | United States Treasury Note, 3.750%, 4/15/2028 | &nbsp;&nbsp; 201041 |
| 13990000<br><sup>1</sup> <br>| United States Treasury Note, 3.750%, 5/15/2028 | &nbsp;&nbsp; 14066296 |
| 2000000 | United States Treasury Note, 3.750%, 10/31/2032 | &nbsp;&nbsp; 1978750 |
| 2800000 | United States Treasury Note, 3.875%, 6/30/2030 | &nbsp;&nbsp; 2821000 |
| 225000 | United States Treasury Note, 3.875%, 9/30/2032 | &nbsp;&nbsp; 224402 |
| 666000 | United States Treasury Note, 4.000%, 2/29/2028 | &nbsp;&nbsp; 672868 |
| 1575000 | United States Treasury Note, 4.000%, 2/28/2030 | &nbsp;&nbsp; 1595039 |
| 4850000 | United States Treasury Note, 4.000%, 3/31/2030 | &nbsp;&nbsp; 4912300 |
| 5000000 | United States Treasury Note, 4.000%, 5/31/2030 | &nbsp;&nbsp; 5064063 |
| 5900000 | United States Treasury Note, 4.000%, 4/30/2032 | &nbsp;&nbsp; 5940584 |
| 425000 | United States Treasury Note, 4.000%, 6/30/2032 | &nbsp;&nbsp; 427656 |
| 4500000 | United States Treasury Note, 4.000%, 11/15/2035 | &nbsp;&nbsp; 4438125 |
| 500000 | United States Treasury Note, 4.125%, 10/31/2026 | &nbsp;&nbsp; 502148 |
| 1252000 | United States Treasury Note, 4.125%, 2/15/2027 | &nbsp;&nbsp; 1260070 |
| 200000 | United States Treasury Note, 4.125%, 2/28/2027 | &nbsp;&nbsp; 201347 |
| 1400000 | United States Treasury Note, 4.125%, 11/15/2027 | &nbsp;&nbsp; 1416026 |
| 1350000 | United States Treasury Note, 4.125%, 10/31/2029 | &nbsp;&nbsp; 1373098 |
| 2800000 | United States Treasury Note, 4.125%, 3/31/2032 | &nbsp;&nbsp; 2839498 |
| 1975000 | United States Treasury Note, 4.250%, 12/31/2026 | &nbsp;&nbsp; 1988916 |
| 1000000 | United States Treasury Note, 4.250%, 1/15/2028 | &nbsp;&nbsp; 1014754 |
| 350000 | United States Treasury Note, 4.250%, 2/15/2028 | &nbsp;&nbsp; 355366 |
| 596000 | United States Treasury Note, 4.250%, 6/30/2029 | &nbsp;&nbsp; 608619 |
| 450000 | United States Treasury Note, 4.250%, 1/31/2030 | &nbsp;&nbsp; 459984 |
| 400 | United States Treasury Note, 4.250%, 6/30/2031 | &nbsp;&nbsp; 409 |
| 8150000 | United States Treasury Note, 4.250%, 11/15/2034 | &nbsp;&nbsp; 8240415 |
| 600000 | United States Treasury Note, 4.250%, 8/15/2035 | &nbsp;&nbsp; 604688 |
| 5825000 | United States Treasury Note, 4.375%, 12/31/2029 | &nbsp;&nbsp; 5981092 |
| 3000 | United States Treasury Note, 4.500%, 3/31/2026 | &nbsp;&nbsp; 3006 |
| 1950000 | United States Treasury Note, 4.500%, 4/15/2027 | &nbsp;&nbsp; 1973842 |
| 3700000 | United States Treasury Note, 4.500%, 12/31/2031 | &nbsp;&nbsp; 3830078 |

---

Semi-Annual Financial Statements and Additional Information

**1**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | U.S. TREASURIES—continued |  |
|  | **U.S. Treasury Notes—continued** |  |
| $4300 | United States Treasury Note, 4.625%, 2/28/2026 | &nbsp;&nbsp; $4305 |
| 550000 | United States Treasury Note, 4.625%, 6/15/2027 | &nbsp;&nbsp; 558725 |
| 900000 | United States Treasury Note, 4.625%, 4/30/2029 | &nbsp;&nbsp; 929108 |
| 300000 | United States Treasury Note, 4.625%, 2/15/2035 | &nbsp;&nbsp; 311578 |
|  | TOTAL | &nbsp;&nbsp; 81849863 |
|  | TOTAL U.S. TREASURIES <br>(IDENTIFIED COST $111,917,884)<br>| &nbsp;&nbsp; 113357975 |
|  | CORPORATE BONDS—24.1% |  |
|  | **Basic Industry - Chemicals—0.0%** |  |
| 14000 | DuPont de Nemours, Inc., Sr. Unsecd. Note, 5.319%, 11/15/2038 | &nbsp;&nbsp; 14029 |
|  | **Basic Industry - Metals & Mining—0.3%** |  |
| 480000 | Anglo American Capital PLC, Sr. Unsecd. Note, 144A, 5.625%, 4/1/2030 | &nbsp;&nbsp; 501235 |
| 291000 | Freeport-McMoRan, Inc., Sr. Unsecd. Note, 5.400%, 11/14/2034 | &nbsp;&nbsp; 300035 |
| 173000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 3.375%, 9/23/2051 | &nbsp;&nbsp; 116424 |
| 150000 | Glencore Funding LLC, Sr. Unsecd. Note, 144A, 5.634%, 4/4/2034 | &nbsp;&nbsp; 156719 |
| 100000 | Southern Copper Corp., Sr. Unsecd. Note, 6.750%, 4/16/2040 | &nbsp;&nbsp; 112830 |
|  | TOTAL | &nbsp;&nbsp; 1187243 |
|  | **Basic Industry - Paper—0.1%** |  |
| 200000 | Smurfit Kappa Treasury Unlimited Co., Sr. Unsecd. Note, 5.200%, 1/15/2030 | &nbsp;&nbsp; 206270 |
|  | **Capital Goods - Aerospace & Defense—1.2%** |  |
| 225000 | Airbus Group SE, Sr. Unsecd. Note, 144A, 3.150%, 4/10/2027 | &nbsp;&nbsp; 223013 |
| 200000 | BAE Systems PLC, Sr. Unsecd. Note, 144A, 3.000%, 9/15/2050 | &nbsp;&nbsp; 133507 |
| 300000 | BAE Systems PLC, Sr. Unsecd. Note, 144A, 5.300%, 3/26/2034 | &nbsp;&nbsp; 310664 |
| 35000 | Boeing Co., Sr. Unsecd. Note, 2.800%, 3/1/2027 | &nbsp;&nbsp; 34467 |
| 658000 | Boeing Co., Sr. Unsecd. Note, 2.950%, 2/1/2030 | &nbsp;&nbsp; 623402 |
| 110000 | General Dynamics Corp., Sr. Unsecd. Note, 1.150%, 6/1/2026 | &nbsp;&nbsp; 108782 |
| 290000 | HEICO Corp., Sr. Unsecd. Note, 5.350%, 8/1/2033 | &nbsp;&nbsp; 300405 |
| 165000 | Huntington Ingalls Industries, Inc., Sr. Unsecd. Note, 3.483%, 12/1/2027 | &nbsp;&nbsp; 163093 |
| 100000 | L3Harris Technologies, Inc., Sr. Unsecd. Note, 5.500%, 8/15/2054 | &nbsp;&nbsp; 97698 |
| 266000 | Leidos, Inc., Sr. Unsecd. Note, Series WI, 4.375%, 5/15/2030 | &nbsp;&nbsp; 265671 |
| 1000000 | Lockheed Martin Corp., Sr. Unsecd. Note, 4.150%, 8/15/2028 | &nbsp;&nbsp; 1006368 |
| 410000 | Lockheed Martin Corp., Sr. Unsecd. Note, 4.750%, 2/15/2034 | &nbsp;&nbsp; 415700 |
| 177000 | Northrop Grumman Corp., Sr. Deb., 7.750%, 2/15/2031 | &nbsp;&nbsp; 203982 |
| 351000 | RTX Corp., Sr. Unsecd. Note, 5.150%, 2/27/2033 | &nbsp;&nbsp; 362513 |
| 100000 | Textron, Inc., Sr. Unsecd. Note, 2.450%, 3/15/2031 | &nbsp;&nbsp; 90629 |
|  | TOTAL | &nbsp;&nbsp; 4339894 |
|  | **Capital Goods - Building Materials—0.1%** |  |
| 139000 | Allegion US Holdings Co., Inc., Sr. Unsecd. Note, 3.550%, 10/1/2027 | &nbsp;&nbsp; 137751 |
| 235000 | Carrier Global Corp., Sr. Unsecd. Note, 5.900%, 3/15/2034 | &nbsp;&nbsp; 252080 |
|  | TOTAL | &nbsp;&nbsp; 389831 |
|  | **Capital Goods - Construction Machinery—0.3%** |  |
| 487000 | Ashtead Capital, Inc., Sr. Unsecd. Note, 144A, 5.550%, 5/30/2033 | &nbsp;&nbsp; 502469 |
| 24000 | CNH Industrial Capital America LLC, Sr. Unsecd. Note, 4.550%, 4/10/2028 | &nbsp;&nbsp; 24164 |
| 110000 | John Deere Capital Corp., Sr. Unsecd. Note, 4.200%, 7/15/2027 | &nbsp;&nbsp; 110800 |
| 341000 | John Deere Capital Corp., Sr. Unsecd. Note, Series MTN, 3.450%, 3/7/2029 | &nbsp;&nbsp; 336166 |
|  | TOTAL | &nbsp;&nbsp; 973599 |
|  | **Capital Goods - Diversified Manufacturing—0.2%** |  |
| 250000 | Honeywell International, Inc., Sr. Unsecd. Note, 4.750%, 2/1/2032 | &nbsp;&nbsp; 255036 |
| 240000 | Parker-Hannifin Corp., Sr. Unsecd. Note, 4.500%, 9/15/2029 | &nbsp;&nbsp; 243358 |
| 168000 | Valmont Industries, Inc., Sr. Unsecd. Note, 5.000%, 10/1/2044 | &nbsp;&nbsp; 154455 |

---

Semi-Annual Financial Statements and Additional Information

**2**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Capital Goods - Diversified Manufacturing—continued** |  |
| $117000 | Wabtec Corp., Sr. Unsecd. Note, 5.611%, 3/11/2034 | &nbsp;&nbsp; $122858 |
|  | TOTAL | &nbsp;&nbsp; 775707 |
|  | **Communications - Cable & Satellite—0.4%** |  |
| 398000 | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | &nbsp;&nbsp; 410758 |
| 280000 | Comcast Corp., Sr. Unsecd. Note, 3.450%, 2/1/2050 | &nbsp;&nbsp; 187197 |
| 688000 | Comcast Corp., Sr. Unsecd. Note, 4.250%, 10/15/2030 | &nbsp;&nbsp; 688267 |
| 22000 | NBCUniversal Media LLC, Sr. Unsecd. Note, 5.950%, 4/1/2041 | &nbsp;&nbsp; 22475 |
|  | TOTAL | &nbsp;&nbsp; 1308697 |
|  | **Communications - Media & Entertainment—0.5%** |  |
| 125000 | AppLovin Corp., Sr. Unsecd. Note, 5.500%, 12/1/2034 | &nbsp;&nbsp; 128431 |
| 500000 | Meta Platforms, Inc., Sr. Unsecd. Note, 5.400%, 8/15/2054 | &nbsp;&nbsp; 465158 |
| 257000 | Meta Platforms, Inc., Sr. Unsecd. Note, 5.550%, 8/15/2064 | &nbsp;&nbsp; 238392 |
| 412000 | Meta Platforms, Inc., Unsecd. Note, 5.600%, 5/15/2053 | &nbsp;&nbsp; 394350 |
| 301000 | Netflix, Inc., Sr. Unsecd. Note, 4.875%, 4/15/2028 | &nbsp;&nbsp; 307445 |
| 142000 | Omnicom Group, Inc., Sr. Unsecd. Note, 2.600%, 8/1/2031 | &nbsp;&nbsp; 128829 |
| 15000 | Omnicom Group, Inc., Sr. Unsecd. Note, 144A, 5.375%, 6/15/2033 | &nbsp;&nbsp; 15213 |
| 194000 | Walt Disney Co., Sr. Unsecd. Note, 3.600%, 1/13/2051 | &nbsp;&nbsp; 144097 |
|  | TOTAL | &nbsp;&nbsp; 1821915 |
|  | **Communications - Telecom Wireless—0.5%** |  |
| 228000 | American Tower Corp., Sr. Unsecd. Note, 2.700%, 4/15/2031 | &nbsp;&nbsp; 209351 |
| 275000 | American Tower Corp., Sr. Unsecd. Note, 4.050%, 3/15/2032 | &nbsp;&nbsp; 267671 |
| 357000 | Crown Castle, Inc., Sr. Unsecd. Note, 3.250%, 1/15/2051 | &nbsp;&nbsp; 235954 |
| 160000 | Crown Castle, Inc., Sr. Unsecd. Note, 4.450%, 2/15/2026 | &nbsp;&nbsp; 159971 |
| 761000 | T-Mobile USA, Inc., Series WI, 3.875%, 4/15/2030 | &nbsp;&nbsp; 748348 |
| 360000 | Vodafone Group PLC, Sr. Unsecd. Note, 4.250%, 9/17/2050 | &nbsp;&nbsp; 281732 |
|  | TOTAL | &nbsp;&nbsp; 1903027 |
|  | **Communications - Telecom Wirelines—0.4%** |  |
| 301000 | AT&T, Inc., Sr. Unsecd. Note, 1.700%, 3/25/2026 | &nbsp;&nbsp; 299478 |
| 284000 | AT&T, Inc., Sr. Unsecd. Note, 2.750%, 6/1/2031 | &nbsp;&nbsp; 260823 |
| 200000 | Rogers Communications, Inc., Sr. Unsecd. Note, 5.000%, 2/15/2029 | &nbsp;&nbsp; 203791 |
| 203000 | Verizon Communications, Inc., Sr. Unsecd. Note, 2.100%, 3/22/2028 | &nbsp;&nbsp; 194900 |
| 369000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.150%, 3/22/2030 | &nbsp;&nbsp; 353371 |
| 133000 | Verizon Communications, Inc., Sr. Unsecd. Note, 3.400%, 3/22/2041 | &nbsp;&nbsp; 104141 |
|  | TOTAL | &nbsp;&nbsp; 1416504 |
|  | **Consumer Cyclical - Automotive—0.6%** |  |
| 125000 | American Honda Finance Corp., Sr. Unsecd. Note, 4.700%, 1/12/2028 | &nbsp;&nbsp; 126695 |
| 130000 | American Honda Finance Corp., Sr. Unsecd. Note, Series GMTN, 5.125%, 7/7/2028 | &nbsp;&nbsp; 133391 |
| 347000 | Daimler Trucks Financial NA, Sr. Unsecd. Note, 144A, 2.375%, 12/14/2028 | &nbsp;&nbsp; 330015 |
| 398000 | Ford Motor Credit Co. LLC, Sr. Unsecd. Note, 6.950%, 3/6/2026 | &nbsp;&nbsp; 398897 |
| 181000 | General Motors Financial Co., Inc., Sr. Unsecd. Note, 5.750%, 2/8/2031 | &nbsp;&nbsp; 190377 |
| 500000 | Hyundai Capital America, Sr. Unsecd. Note, 144A, 5.150%, 3/27/2030 | &nbsp;&nbsp; 512219 |
| 305000 | Mercedes-Benz Finance NA LLC, Sr. Unsecd. Note, 144A, 5.250%, 11/29/2027 | &nbsp;&nbsp; 312434 |
|  | TOTAL | &nbsp;&nbsp; 2004028 |
|  | **Consumer Cyclical - Gaming—0.0%** |  |
| 121000 | Boyd Gaming Corp., Sr. Unsecd. Note, 4.750%, 12/1/2027 | &nbsp;&nbsp; 120845 |
|  | **Consumer Cyclical - Retailers—0.3%** |  |
| 250500 | Advance Auto Parts, Inc., Sr. Unsecd. Note, Series WI, 3.900%, 4/15/2030 | &nbsp;&nbsp; 229953 |
| 324000 | AutoZone, Inc., Sr. Unsecd. Note, 4.750%, 2/1/2033 | &nbsp;&nbsp; 324691 |
| 236000 | Costco Wholesale Corp., Sr. Unsecd. Note, 1.600%, 4/20/2030 | &nbsp;&nbsp; 213766 |
| 186000 | Home Depot, Inc., Sr. Unsecd. Note, 2.700%, 4/15/2030 | &nbsp;&nbsp; 175872 |

---

Semi-Annual Financial Statements and Additional Information

**3**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Consumer Cyclical - Retailers—continued** |  |
| $127500 | Home Depot, Inc., Sr. Unsecd. Note, 2.950%, 6/15/2029 | &nbsp;&nbsp; $123372 |
| 84500 | Tractor Supply Co., Sr. Unsecd. Note, 5.250%, 5/15/2033 | &nbsp;&nbsp; 87382 |
| 25000 | WalMart, Inc., Sr. Unsecd. Note, 3.700%, 6/26/2028 | &nbsp;&nbsp; 25048 |
|  | TOTAL | &nbsp;&nbsp; 1180084 |
|  | **Consumer Cyclical - Services—0.3%** |  |
| 405000 | Amazon.com, Inc., Sr. Unsecd. Note, 1.500%, 6/3/2030 | &nbsp;&nbsp; 365011 |
| 95000 | Amazon.com, Inc., Sr. Unsecd. Note, 3.150%, 8/22/2027 | &nbsp;&nbsp; 94228 |
| 157000 | Match Group Holdings II LLC, Sr. Unsecd. Note, 144A, 5.000%, 12/15/2027 | &nbsp;&nbsp; 156661 |
| 300000 | Uber Technologies, Inc., Sr. Unsecd. Note, 4.800%, 9/15/2035 | &nbsp;&nbsp; 298416 |
|  | TOTAL | &nbsp;&nbsp; 914316 |
|  | **Consumer Non-Cyclical - Food/Beverage—0.7%** |  |
| 200000 | Bacardi-MartinI B.V., Sr. Unsecd. Note, 144A, 6.000%, 2/1/2035 | &nbsp;&nbsp; 207532 |
| 190000 | Coca-Cola Co., Sr. Unsecd. Note, 2.125%, 9/6/2029 | &nbsp;&nbsp; 178929 |
| 310000 | Coca-Cola Femsa S.A.B. de C.V., Sr. Unsecd. Note, 2.750%, 1/22/2030 | &nbsp;&nbsp; 293472 |
| 163000 | Constellation Brands, Inc., Sr. Unsecd. Note, 4.650%, 11/15/2028 | &nbsp;&nbsp; 165320 |
| 220000 | Flowers Foods, Inc., Sr. Unsecd. Note, 3.500%, 10/1/2026 | &nbsp;&nbsp; 218925 |
| 200000 | Keurig Dr Pepper, Inc., Sr. Unsecd. Note, 3.200%, 5/1/2030 | &nbsp;&nbsp; 189984 |
| 13000 | Kraft Heinz Foods Co., Sr. Unsecd. Note, 4.375%, 6/1/2046 | &nbsp;&nbsp; 10740 |
| 265000 | Mars, Inc., Sr. Unsecd. Note, 144A, 5.200%, 3/1/2035 | &nbsp;&nbsp; 272375 |
| 55000 | Mars, Inc., Sr. Unsecd. Note, 144A, 5.700%, 5/1/2055 | &nbsp;&nbsp; 54787 |
| 296000 | PepsiCo, Inc., Sr. Unsecd. Note, 2.625%, 7/29/2029 | &nbsp;&nbsp; 282523 |
| 200000 | Smithfield Foods, Inc., Sr. Unsecd. Note, 144A, 3.000%, 10/15/2030 | &nbsp;&nbsp; 184016 |
| 160000 | Sysco Corp., Sr. Unsecd. Note, 3.150%, 12/14/2051 | &nbsp;&nbsp; 106647 |
| 125000 | The Campbell's Co., Sr. Unsecd. Note, 5.200%, 3/21/2029 | &nbsp;&nbsp; 128052 |
| 193000 | Tyson Foods, Inc., Sr. Unsecd. Note, 5.700%, 3/15/2034 | &nbsp;&nbsp; 203478 |
|  | TOTAL | &nbsp;&nbsp; 2496780 |
|  | **Consumer Non-Cyclical - Health Care—0.6%** |  |
| 290000 | Alcon Finance Corp., Sr. Unsecd. Note, 144A, 2.600%, 5/27/2030 | &nbsp;&nbsp; 269624 |
| 110000 | Becton Dickinson & Co., Sr. Unsecd. Note, 4.685%, 12/15/2044 | &nbsp;&nbsp; 97446 |
| 293000 | CVS Health Corp., Sr. Unsecd. Note, 5.250%, 1/30/2031 | &nbsp;&nbsp; 302768 |
| 207000 | CVS Health Corp., Sr. Unsecd. Note, 5.250%, 2/21/2033 | &nbsp;&nbsp; 213123 |
| 45000 | GE HealthCare Technologies, Inc., Sr. Unsecd. Note, 4.800%, 8/14/2029 | &nbsp;&nbsp; 45997 |
| 276000 | GE HealthCare Technologies, Inc., Sr. Unsecd. Note, 5.857%, 3/15/2030 | &nbsp;&nbsp; 291874 |
| 305000 | Haleon US Capital LLC, Sr. Unsecd. Note, 3.375%, 3/24/2027 | &nbsp;&nbsp; 302763 |
| 85000 | HCA, Inc., 5.250%, 6/15/2026 | &nbsp;&nbsp; 85066 |
| 134000 | HCA, Inc., Sr. Unsecd. Note, 3.500%, 9/1/2030 | &nbsp;&nbsp; 128862 |
| 124000 | HCA, Inc., Sr. Unsecd. Note, 5.200%, 6/1/2028 | &nbsp;&nbsp; 127048 |
| 114000 | HCA, Inc., Sr. Unsecd. Note, 5.950%, 9/15/2054 | &nbsp;&nbsp; 112620 |
| 82000 | HCA, Inc., Sr. Unsecd. Note, 6.000%, 4/1/2054 | &nbsp;&nbsp; 81521 |
|  | TOTAL | &nbsp;&nbsp; 2058712 |
|  | **Consumer Non-Cyclical - Pharmaceuticals—0.9%** |  |
| 266000 | Abbott Laboratories, Sr. Unsecd. Note, 3.750%, 11/30/2026 | &nbsp;&nbsp; 265991 |
| 30000 | Abbott Laboratories, Sr. Unsecd. Note, 4.900%, 11/30/2046 | &nbsp;&nbsp; 28247 |
| 112000 | AbbVie, Inc., Sr. Unsecd. Note, 2.950%, 11/21/2026 | &nbsp;&nbsp; 111128 |
| 492500 | AbbVie, Inc., Sr. Unsecd. Note, 4.550%, 3/15/2035 | &nbsp;&nbsp; 484855 |
| 190000 | Amgen, Inc., Sr. Unsecd. Note, 2.450%, 2/21/2030 | &nbsp;&nbsp; 177198 |
| 376000 | Amgen, Inc., Sr. Unsecd. Note, 5.250%, 3/2/2033 | &nbsp;&nbsp; 389221 |
| 205000 | AstraZeneca PLC, Sr. Unsecd. Note, 3.125%, 6/12/2027 | &nbsp;&nbsp; 203388 |
| 126500 | Biogen, Inc., Sr. Unsecd. Note, 2.250%, 5/1/2030 | &nbsp;&nbsp; 116207 |
| 127000 | Bristol-Myers Squibb Co., Sr. Sub. Secd. Note, 5.550%, 2/22/2054 | &nbsp;&nbsp; 124723 |

---

Semi-Annual Financial Statements and Additional Information

**4**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Consumer Non-Cyclical - Pharmaceuticals—continued** |  |
| $206000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.125%, 6/15/2039 | &nbsp;&nbsp; $187007 |
| 225000 | Bristol-Myers Squibb Co., Sr. Unsecd. Note, Series WI, 4.250%, 10/26/2049 | &nbsp;&nbsp; 183838 |
| 195000 | Gilead Sciences, Inc., Sr. Unsecd. Note, 4.600%, 9/1/2035 | &nbsp;&nbsp; 192718 |
| 64000 | Johnson & Johnson, Sr. Unsecd. Note, 3.500%, 1/15/2048 | &nbsp;&nbsp; 49229 |
| 87000 | Pfizer Investment Enterprises Pte Ltd., Sr. Unsecd. Note, 4.450%, 5/19/2028 | &nbsp;&nbsp; 88153 |
| 227000 | Pfizer Investment Enterprises Pte Ltd., Sr. Unsecd. Note, 4.750%, 5/19/2033 | &nbsp;&nbsp; 229407 |
| 382000 | Pfizer, Inc., Sr. Unsecd. Note, 2.625%, 4/1/2030 | &nbsp;&nbsp; 360443 |
| 225000 | Zoetis, Inc., Sr. Unsecd. Note, 3.000%, 5/15/2050 | &nbsp;&nbsp; 149040 |
|  | TOTAL | &nbsp;&nbsp; 3340793 |
|  | **Consumer Non-Cyclical - Products—0.1%** |  |
| 245000 | Kenvue, Inc., Sr. Unsecd. Note, 4.900%, 3/22/2033 | &nbsp;&nbsp; 250000 |
| 131000 | Kenvue, Inc., Sr. Unsecd. Note, 5.050%, 3/22/2028 | &nbsp;&nbsp; 133836 |
|  | TOTAL | &nbsp;&nbsp; 383836 |
|  | **Consumer Non-Cyclical - Supermarkets—0.1%** |  |
| 260000 | Kroger Co., Sr. Unsecd. Note, 5.000%, 9/15/2034 | &nbsp;&nbsp; 261436 |
|  | **Consumer Non-Cyclical - Tobacco—0.3%** |  |
| 315000 | BAT Capital Corp., Sr. Unsecd. Note, 5.834%, 2/20/2031 | &nbsp;&nbsp; 334191 |
| 116000 | BAT International Finance PLC, Sr. Unsecd. Note, 1.668%, 3/25/2026 | &nbsp;&nbsp; 115360 |
| 156000 | Philip Morris International, Inc., Sr. Unsecd. Note, 2.100%, 5/1/2030 | &nbsp;&nbsp; 142898 |
| 413000 | Philip Morris International, Inc., Sr. Unsecd. Note, 3.875%, 8/21/2042 | &nbsp;&nbsp; 340359 |
| 100000 | Philip Morris International, Inc., Sr. Unsecd. Note, 4.900%, 11/1/2034 | &nbsp;&nbsp; 100800 |
| 118000 | Reynolds American, Inc., Sr. Unsecd. Note, 5.850%, 8/15/2045 | &nbsp;&nbsp; 116093 |
|  | TOTAL | &nbsp;&nbsp; 1149701 |
|  | **Energy - Independent—0.2%** |  |
| 50000 | APA Corp., Sr. Unsecd. Note, 6.100%, 2/15/2035 | &nbsp;&nbsp; 51397 |
| 30000 | Diamondback Energy, Inc., Sr. Unsecd. Note, 5.200%, 4/18/2027 | &nbsp;&nbsp; 30434 |
| 170000 | Diamondback Energy, Inc., Sr. Unsecd. Note, 6.250%, 3/15/2033 | &nbsp;&nbsp; 183168 |
| 98500 | Hess Corp., Sr. Unsecd. Note, 7.300%, 8/15/2031 | &nbsp;&nbsp; 113145 |
| 121000 | Occidental Petroleum Corp., Sr. Unsecd. Note, 6.375%, 9/1/2028 | &nbsp;&nbsp; 126745 |
| 90000 | Ovintiv, Inc., Sr. Unsecd. Note, 7.100%, 7/15/2053 | &nbsp;&nbsp; 95637 |
|  | TOTAL | &nbsp;&nbsp; 600526 |
|  | **Energy - Integrated—0.1%** |  |
| 97000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 3.000%, 2/24/2050 | &nbsp;&nbsp; 63240 |
| 155500 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 4.234%, 11/6/2028 | &nbsp;&nbsp; 156498 |
| 24000 | BP Capital Markets America, Inc., Sr. Unsecd. Note, 4.893%, 9/11/2033 | &nbsp;&nbsp; 24416 |
| 180000 | Chevron Corp., Sr. Unsecd. Note, 3.078%, 5/11/2050 | &nbsp;&nbsp; 122049 |
| 150000 | Shell International Finance B.V., Sr. Unsecd. Note, 4.000%, 5/10/2046 | &nbsp;&nbsp; 121675 |
|  | TOTAL | &nbsp;&nbsp; 487878 |
|  | **Energy - Midstream—1.4%** |  |
| 93000 | Antero Midstream Partners LP, Sr. Unsecd. Note, 144A, 5.750%, 1/15/2028 | &nbsp;&nbsp; 93178 |
| 220000 | Boardwalk Pipeline Partners LP, Sr. Unsecd. Note, 4.800%, 5/3/2029 | &nbsp;&nbsp; 222674 |
| 129000 | Columbia Pipeline Group, Inc., Sr. Unsecd. Note, 5.800%, 6/1/2045 | &nbsp;&nbsp; 127419 |
| 80000 | Enbridge, Inc., Sr. Unsecd. Note, 2.500%, 8/1/2033 | &nbsp;&nbsp; 68705 |
| 700000 | Enbridge, Inc., Sr. Unsecd. Note, 4.900%, 6/20/2030 | &nbsp;&nbsp; 715613 |
| 141000 | Enbridge, Inc., Sr. Unsecd. Note, 5.950%, 4/5/2054 | &nbsp;&nbsp; 142734 |
| 340000 | Energy Transfer LP, Sr. Unsecd. Note, 5.200%, 4/1/2030 | &nbsp;&nbsp; 350208 |
| 149000 | Energy Transfer LP, Sr. Unsecd. Note, 5.500%, 6/1/2027 | &nbsp;&nbsp; 151407 |
| 250000 | Energy Transfer LP, Sr. Unsecd. Note, 5.750%, 2/15/2033 | &nbsp;&nbsp; 262358 |
| 138000 | Enterprise Products Operating LLC, Sr. Unsecd. Note, 5.950%, 2/1/2041 | &nbsp;&nbsp; 145487 |
| 23000 | Kinder Morgan Energy Partners LP, Sr. Unsecd. Note, 5.800%, 3/15/2035 | &nbsp;&nbsp; 24161 |

---

Semi-Annual Financial Statements and Additional Information

**5**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Energy - Midstream—continued** |  |
| $100000 | Kinder Morgan, Inc., Sr. Unsecd. Note, 5.000%, 2/1/2029 | &nbsp;&nbsp; $102316 |
| 421500 | MPLX LP, Sr. Unsecd. Note, 4.950%, 9/1/2032 | &nbsp;&nbsp; 424348 |
| 100000 | National Fuel Gas Co., Sr. Unsecd. Note, 2.950%, 3/1/2031 | &nbsp;&nbsp; 91227 |
| 203000 | National Fuel Gas Co., Sr. Unsecd. Note, 3.950%, 9/15/2027 | &nbsp;&nbsp; 202208 |
| 270000 | ONEOK, Inc., Sr. Unsecd. Note, 6.100%, 11/15/2032 | &nbsp;&nbsp; 288924 |
| 271000 | Plains All American Pipeline LP, Sr. Unsecd. Note, 5.150%, 6/1/2042 | &nbsp;&nbsp; 247515 |
| 333000 | Targa Resources, Inc., Sr. Unsecd. Note, 4.200%, 2/1/2033 | &nbsp;&nbsp; 318801 |
| 225000 | TC Pipelines, LP, Sr. Unsecd. Note, 3.900%, 5/25/2027 | &nbsp;&nbsp; 224050 |
| 179000 | Tennessee Gas Pipeline Co. LLC, Sr. Unsecd. Note, 7.000%, 3/15/2027 | &nbsp;&nbsp; 185527 |
| 372000 | Williams Cos., Inc., Sr. Unsecd. Note, 4.900%, 3/15/2029 | &nbsp;&nbsp; 379752 |
| 80000 | Williams Cos., Inc., Sr. Unsecd. Note, 8.750%, 3/15/2032 | &nbsp;&nbsp; 97055 |
|  | TOTAL | &nbsp;&nbsp; 4865667 |
|  | **Energy - Oil Field Services—0.2%** |  |
| 315000 | Eni SpA, Sr. Unsecd. Note, 144A, 5.950%, 5/15/2054 | &nbsp;&nbsp; 312308 |
| 103000 | Halliburton Co., Sr. Unsecd. Note, 5.000%, 11/15/2045 | &nbsp;&nbsp; 92090 |
| 138000 | Schlumberger Holdings Corp., Sr. Unsecd. Note, 144A, 2.650%, 6/26/2030 | &nbsp;&nbsp; 129324 |
| 500 | Schlumberger Investment S.A., Sr. Unsecd. Note, 2.650%, 6/26/2030 | &nbsp;&nbsp; 468 |
|  | TOTAL | &nbsp;&nbsp; 534190 |
|  | **Energy - Refining—0.1%** |  |
| 198000 | Marathon Petroleum Corp., Sr. Unsecd. Note, 4.750%, 9/15/2044 | &nbsp;&nbsp; 169240 |
| 19000 | Phillips 66, Sr. Unsecd. Note, 1.300%, 2/15/2026 | &nbsp;&nbsp; 18928 |
| 10000 | Valero Energy Corp., Sr. Unsecd. Note, 7.500%, 4/15/2032 | &nbsp;&nbsp; 11447 |
|  | TOTAL | &nbsp;&nbsp; 199615 |
|  | **Financial Institution - Banking—5.1%** |  |
| 85000 | American Express Co., Sr. Unsecd. Note, 4.050%, 5/3/2029 | &nbsp;&nbsp; 85262 |
| 637000 | American Express Co., Sr. Unsecd. Note, 5.850%, 11/5/2027 | &nbsp;&nbsp; 658884 |
| 755000 | Bank of America Corp., Sr. Unsecd. Note, 2.572%, 10/20/2032 | &nbsp;&nbsp; 680937 |
| 627000 | Bank of America Corp., Sr. Unsecd. Note, 2.687%, 4/22/2032 | &nbsp;&nbsp; 575369 |
| 852500 | Bank of America Corp., Sr. Unsecd. Note, 5.468%, 1/23/2035 | &nbsp;&nbsp; 888066 |
| 144000 | Bank of America Corp., Sr. Unsecd. Note, Series MTN, 1.898%, 7/23/2031 | &nbsp;&nbsp; 129348 |
| 105000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 1.650%, 1/28/2031 | &nbsp;&nbsp; 92930 |
| 379000 | Bank of New York Mellon Corp., Sr. Unsecd. Note, Series MTN, 3.992%, 6/13/2028 | &nbsp;&nbsp; 379140 |
| 184500 | Capital One Financial Co., Sr. Unsecd. Note, 5.817%, 2/1/2034 | &nbsp;&nbsp; 193103 |
| 263000 | Citigroup, Inc., Sr. Unsecd. Note, 2.976%, 11/5/2030 | &nbsp;&nbsp; 250475 |
| 655000 | Citigroup, Inc., Sr. Unsecd. Note, 4.412%, 3/31/2031 | &nbsp;&nbsp; 654890 |
| 381500 | Citigroup, Inc., Sub. Note, 4.450%, 9/29/2027 | &nbsp;&nbsp; 383954 |
| 127000 | Citigroup, Inc., Sub., 5.827%, 2/13/2035 | &nbsp;&nbsp; 131980 |
| 428000 | Citizens Financial Group, Inc., Sr. Unsecd. Note, 2.500%, 2/6/2030 | &nbsp;&nbsp; 398059 |
| 302000 | Comerica, Inc., Sr. Unsecd. Note, 5.982%, 1/30/2030 | &nbsp;&nbsp; 315052 |
| 70000 | Fifth Third Bancorp, Sr. Unsecd. Note, 4.895%, 9/6/2030 | &nbsp;&nbsp; 71129 |
| 307000 | Fifth Third Bancorp, Sr. Unsecd. Note, 5.631%, 1/29/2032 | &nbsp;&nbsp; 322223 |
| 276000 | Fifth Third Bank, Inc., Sr. Unsecd. Note, Series BKNT, 2.250%, 2/1/2027 | &nbsp;&nbsp; 271156 |
| 340000 | FNB Corp. (PA), 5.722%, 12/11/2030 | &nbsp;&nbsp; 346982 |
| 1139000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 2.615%, 4/22/2032 | &nbsp;&nbsp; 1038555 |
| 245000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.500%, 11/16/2026 | &nbsp;&nbsp; 244146 |
| 378000 | Goldman Sachs Group, Inc., Sr. Unsecd. Note, 3.814%, 4/23/2029 | &nbsp;&nbsp; 375783 |
| 1316000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 5.336%, 1/23/2035 | &nbsp;&nbsp; 1363927 |
| 340000 | JPMorgan Chase & Co., Sr. Unsecd. Note, 5.500%, 10/15/2040 | &nbsp;&nbsp; 354333 |
| 495000 | JPMorgan Chase & Co., Sub., 5.576%, 7/23/2036 | &nbsp;&nbsp; 512052 |
| 260000 | KeyCorp, Sr. Unsecd. Note, 6.401%, 3/6/2035 | &nbsp;&nbsp; 282411 |

---

Semi-Annual Financial Statements and Additional Information

**6**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Financial Institution - Banking—continued** |  |
| $324000 | M&T Bank Corp., Sr. Unsecd. Note, 6.082%, 3/13/2032 | &nbsp;&nbsp; $344176 |
| 174000 | M&T Bank Corp., Sr. Unsecd. Note, 7.413%, 10/30/2029 | &nbsp;&nbsp; 188775 |
| 327000 | Morgan Stanley, Sr. Unsecd. Note, 1.593%, 5/4/2027 | &nbsp;&nbsp; 324154 |
| 637000 | Morgan Stanley, Sr. Unsecd. Note, 5.297%, 4/20/2037 | &nbsp;&nbsp; 647956 |
| 751000 | Morgan Stanley, Sr. Unsecd. Note, 5.466%, 1/18/2035 | &nbsp;&nbsp; 780646 |
| 500000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 5.373%, 7/21/2036 | &nbsp;&nbsp; 514242 |
| 792000 | PNC Financial Services Group, Inc., Sr. Unsecd. Note, 5.582%, 6/12/2029 | &nbsp;&nbsp; 821399 |
| 310000 | Regions Financial Corp., Sr. Unsecd. Note, 5.722%, 6/6/2030 | &nbsp;&nbsp; 323183 |
| 250000 | Synovus Bank GA, Sr. Unsecd. Note, 5.625%, 2/15/2028 | &nbsp;&nbsp; 255358 |
| 297000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 5.711%, 1/24/2035 | &nbsp;&nbsp; 312420 |
| 160000 | Truist Financial Corp., Sr. Unsecd. Note, Series MTN, 5.867%, 6/8/2034 | &nbsp;&nbsp; 170255 |
| 212000 | U.S. Bancorp, 4.967%, 7/22/2033 | &nbsp;&nbsp; 213592 |
| 433000 | U.S. Bancorp, Sr. Unsecd. Note, 5.384%, 1/23/2030 | &nbsp;&nbsp; 448452 |
| 1314000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 2.393%, 6/2/2028 | &nbsp;&nbsp; 1283901 |
| 475000 | Wells Fargo & Co., Sr. Unsecd. Note, Series MTN, 4.897%, 7/25/2033 | &nbsp;&nbsp; 482389 |
|  | TOTAL | &nbsp;&nbsp; 18111044 |
|  | **Financial Institution - Broker/Asset Mgr/Exchange—0.2%** |  |
| 140000 | BlackRock, Inc., Sr. Unsecd. Note, 4.750%, 5/25/2033 | &nbsp;&nbsp; 143228 |
| 100500 | Charles Schwab Corp., Sr. Unsecd. Note, 3.250%, 5/22/2029 | &nbsp;&nbsp; 97897 |
| 287500 | Jefferies Financial Group, Inc., Sr. Unsecd. Note, 6.200%, 4/14/2034 | &nbsp;&nbsp; 303426 |
| 12000 | Nuveen LLC, Sr. Unsecd. Note, 144A, 4.000%, 11/1/2028 | &nbsp;&nbsp; 12002 |
|  | TOTAL | &nbsp;&nbsp; 556553 |
|  | **Financial Institution - Finance Companies—0.2%** |  |
| 346000 | AerCap Ireland Capital Ltd. / AerCap Global Aviation Trust, Sr. Unsecd. Note, 3.000%, 10/29/2028 | &nbsp;&nbsp; 335443 |
| 123000 | Air Lease Corp., Sr. Unsecd. Note, 3.125%, 12/1/2030 | &nbsp;&nbsp; 113981 |
| 220000 | Air Lease Corp., Sr. Unsecd. Note, 5.300%, 2/1/2028 | &nbsp;&nbsp; 224036 |
| 180000 | Ally Financial, Inc., Sr. Unsecd. Note, 6.184%, 7/26/2035 | &nbsp;&nbsp; 186552 |
|  | TOTAL | &nbsp;&nbsp; 860012 |
|  | **Financial Institution - Insurance - Health—0.3%** |  |
| 218000 | Centene Corp., 2.500%, 3/1/2031 | &nbsp;&nbsp; 188259 |
| 430000 | Elevance Health, Inc., Sr. Unsecd. Note, 5.150%, 6/15/2029 | &nbsp;&nbsp; 443700 |
| 592000 | UnitedHealth Group, Inc., Sr. Unsecd. Note, 4.900%, 4/15/2031 | &nbsp;&nbsp; 607853 |
|  | TOTAL | &nbsp;&nbsp; 1239812 |
|  | **Financial Institution - Insurance - Life—0.9%** |  |
| 258000 | Corebridge Financial, Inc., Sr. Unsecd. Note, 5.750%, 1/15/2034 | &nbsp;&nbsp; 269737 |
| 500000 | CoreBridge Global Funding, Sec. Fac. Bond, 144A, 4.850%, 6/6/2030 | &nbsp;&nbsp; 506482 |
| 55000 | Lincoln National Corp., Sr. Note, 7.000%, 6/15/2040 | &nbsp;&nbsp; 61808 |
| 363000 | Massachusetts Mutual Life Insurance Co., Sub. Note, 144A, 3.375%, 4/15/2050 | &nbsp;&nbsp; 245382 |
| 313000 | MetLife, Inc., Jr. Sub. Note, 6.400%, 12/15/2036 | &nbsp;&nbsp; 328396 |
| 201000 | MetLife, Inc., Jr. Sub. Note, 10.750%, 8/1/2039 | &nbsp;&nbsp; 268119 |
| 318000 | Northwestern Mutual Life Insurance Co., Sr. Unsecd. Note, 144A, 3.625%, 9/30/2059 | &nbsp;&nbsp; 220710 |
| 180000 | Pacific Life Global Funding II, Sr. Secd. Note, 144A, 4.900%, 1/11/2029 | &nbsp;&nbsp; 183823 |
| 192000 | Pacific LifeCorp., Bond, 144A, 6.600%, 9/15/2033 | &nbsp;&nbsp; 213339 |
| 508500 | Principal Financial Group, Inc., Sr. Unsecd. Note, 2.125%, 6/15/2030 | &nbsp;&nbsp; 463209 |
| 189000 | Prudential Financial, Inc., Sr. Unsecd. Note, Series MTN, 4.600%, 5/15/2044 | &nbsp;&nbsp; 168761 |
| 230000 | Teachers Insurance & Annuity Association of America, Sub., 144A, 4.900%, 9/15/2044 | &nbsp;&nbsp; 208749 |
|  | TOTAL | &nbsp;&nbsp; 3138515 |
|  | **Financial Institution - Insurance - P&C—0.6%** |  |
| 218500 | American International Group, Inc., Sr. Unsecd. Note, 5.125%, 3/27/2033 | &nbsp;&nbsp; 224713 |
| 93000 | Aon North America, Inc., 5.750%, 3/1/2054 | &nbsp;&nbsp; 92528 |

---

Semi-Annual Financial Statements and Additional Information

**7**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Financial Institution - Insurance - P&C—continued** |  |
| $200000 | Beacon Funding Trust, Sr. Unsecd. Note, 6.266%, 8/15/2054 | &nbsp;&nbsp; $203045 |
| 375000 | Chubb INA Holdings LLC., Sr. Unsecd. Note, 4.650%, 8/15/2029 | &nbsp;&nbsp; 383284 |
| 379000 | CNA Financial Corp., Sr. Unsecd. Note, 5.500%, 6/15/2033 | &nbsp;&nbsp; 392565 |
| 205000 | Marsh & McLennan Cos., Inc., Sr. Unsecd. Note, 4.650%, 3/15/2030 | &nbsp;&nbsp; 209110 |
| 25000 | Nationwide Mutual Insurance Co., Sub. Note, 144A, 9.375%, 8/15/2039 | &nbsp;&nbsp; 33431 |
| 115000 | The Hartford Insurance Group, Inc., Sr. Unsecd. Note, 6.625%, 4/15/2042 | &nbsp;&nbsp; 126764 |
| 500000 | Travelers Cos., Inc., Sr. Unsecd. Note, 5.700%, 7/24/2055 | &nbsp;&nbsp; 510603 |
|  | TOTAL | &nbsp;&nbsp; 2176043 |
|  | **Financial Institution - REIT - Apartment—0.4%** |  |
| 333500 | Avalonbay Communities, Inc., Sr. Unsecd. Note, Series MTN, 3.350%, 5/15/2027 | &nbsp;&nbsp; 330918 |
| 483000 | Camden Property Trust, Sr. Unsecd. Note, 4.900%, 1/15/2034 | &nbsp;&nbsp; 488991 |
| 300000 | Mid-America Apartment Communities LP, Sr. Unsecd. Note, 5.300%, 2/15/2032 | &nbsp;&nbsp; 313159 |
| 219000 | UDR, Inc., Sr. Unsecd. Note, 3.100%, 11/1/2034 | &nbsp;&nbsp; 189614 |
| 90000 | UDR, Inc., Sr. Unsecd. Note, Series MTN, 3.500%, 7/1/2027 | &nbsp;&nbsp; 89232 |
|  | TOTAL | &nbsp;&nbsp; 1411914 |
|  | **Financial Institution - REIT - Healthcare—0.2%** |  |
| 255000 | Healthcare Trust of America, Sr. Unsecd. Note, 2.000%, 3/15/2031 | &nbsp;&nbsp; 223654 |
| 178000 | Physicians Realty Trust, Sr. Unsecd. Note, 4.300%, 3/15/2027 | &nbsp;&nbsp; 178256 |
| 436000 | Welltower, Inc., Sr. Unsecd. Note, 2.750%, 1/15/2031 | &nbsp;&nbsp; 405539 |
|  | TOTAL | &nbsp;&nbsp; 807449 |
|  | **Financial Institution - REIT - Office—0.1%** |  |
| 355000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 3.950%, 1/15/2027 | &nbsp;&nbsp; 354459 |
| 67000 | Alexandria Real Estate Equities, Inc., Sr. Unsecd. Note, 5.250%, 5/15/2036 | &nbsp;&nbsp; 66229 |
|  | TOTAL | &nbsp;&nbsp; 420688 |
|  | **Financial Institution - REIT - Other—0.2%** |  |
| 165000 | Host Hotels & Resorts LP, Sr. Unsecd. Note, 5.500%, 4/15/2035 | &nbsp;&nbsp; 167016 |
| 105000 | ProLogis LP, Sr. Unsecd. Note, 5.250%, 6/15/2053 | &nbsp;&nbsp; 99774 |
| 240000 | WP Carey, Inc., Sr. Unsecd. Note, 4.250%, 10/1/2026 | &nbsp;&nbsp; 240280 |
| 220000 | WP Carey, Inc., Sr. Unsecd. Note, 5.375%, 6/30/2034 | &nbsp;&nbsp; 227054 |
|  | TOTAL | &nbsp;&nbsp; 734124 |
|  | **Financial Institution - REIT - Retail—0.2%** |  |
| 420000 | Kimco Realty Corp., Sr. Unsecd. Note, 2.800%, 10/1/2026 | &nbsp;&nbsp; 416353 |
| 120000 | Regency Centers LP, Sr. Unsecd. Note, 4.125%, 3/15/2028 | &nbsp;&nbsp; 120224 |
| 155000 | Regency Centers LP, Sr. Unsecd. Note, 5.100%, 1/15/2035 | &nbsp;&nbsp; 156943 |
|  | TOTAL | &nbsp;&nbsp; 693520 |
|  | **Technology—2.9%** |  |
| 185500 | Alphabet, Inc., Sr. Unsecd. Note, 1.900%, 8/15/2040 | &nbsp;&nbsp; 125560 |
| 1000000 | Alphabet, Inc., Sr. Unsecd. Note, 5.450%, 11/15/2055 | &nbsp;&nbsp; 980967 |
| 617000 | Apple, Inc., 1.650%, 5/11/2030 | &nbsp;&nbsp; 561033 |
| 25000 | Apple, Inc., Sr. Unsecd. Note, 2.900%, 9/12/2027 | &nbsp;&nbsp; 24693 |
| 875000 | Apple, Inc., Sr. Unsecd. Note, 3.950%, 8/8/2052 | &nbsp;&nbsp; 694069 |
| 280000 | Autodesk, Inc., Sr. Unsecd. Note, 5.300%, 6/15/2035 | &nbsp;&nbsp; 287118 |
| 125000 | Automatic Data Processing, Inc., Sr. Unsecd. Note, 4.450%, 9/9/2034 | &nbsp;&nbsp; 124623 |
| 179000 | Broadcom, Inc., Sr. Unsecd. Note, 4.150%, 11/15/2030 | &nbsp;&nbsp; 178266 |
| 250000 | Broadcom, Inc., Sr. Unsecd. Note, 5.150%, 11/15/2031 | &nbsp;&nbsp; 259362 |
| 500000 | Broadcom, Inc., Sr. Unsecd. Note, 5.200%, 4/15/2032 | &nbsp;&nbsp; 518738 |
| 341000 | CDW LLC/ CDW Finance Corp., Sr. Unsecd. Note, 2.670%, 12/1/2026 | &nbsp;&nbsp; 336470 |
| 230000 | Cisco Systems, Inc., Sr. Unsecd. Note, 4.750%, 2/24/2030 | &nbsp;&nbsp; 236439 |
| 217000 | Cisco Systems, Inc., Sr. Unsecd. Note, 4.800%, 2/26/2027 | &nbsp;&nbsp; 219433 |
| 275000 | Dell International LLC / EMC Corp., Sr. Unsecd. Note, 5.000%, 4/1/2030 | &nbsp;&nbsp; 281814 |

---

Semi-Annual Financial Statements and Additional Information

**8**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Technology—continued** |  |
| $60000 | Fidelity National Information Services, Inc., Sr. Unsecd. Note, 3.100%, 3/1/2041 | &nbsp;&nbsp; $44495 |
| 250000 | Fiserv, Inc., Sr. Unsecd. Note, 4.750%, 3/15/2030 | &nbsp;&nbsp; 251213 |
| 43000 | Fiserv, Inc., Sr. Unsecd. Note, 5.600%, 3/2/2033 | &nbsp;&nbsp; 44384 |
| 272000 | Fortinet, Inc., Sr. Unsecd. Note, 2.200%, 3/15/2031 | &nbsp;&nbsp; 243576 |
| 114000 | Global Payments, Inc., Sr. Unsecd. Note, 2.900%, 11/15/2031 | &nbsp;&nbsp; 102169 |
| 234000 | Global Payments, Inc., Sr. Unsecd. Note, 4.450%, 6/1/2028 | &nbsp;&nbsp; 234206 |
| 161000 | Global Payments, Inc., Sr. Unsecd. Note, 4.950%, 8/15/2027 | &nbsp;&nbsp; 162737 |
| 410000 | Hewlett Packard Enterprise Co., Sr. Unsecd. Note, 5.000%, 10/15/2034 | &nbsp;&nbsp; 406398 |
| 300000 | Keysight Technologies, Inc., Sr. Unsecd. Note, 5.350%, 7/30/2030 | &nbsp;&nbsp; 312870 |
| 235000 | KLA Corp., Sr. Unsecd. Note, 4.650%, 7/15/2032 | &nbsp;&nbsp; 238425 |
| 249000 | Lam Research Corp., Sr. Unsecd. Note, 4.000%, 3/15/2029 | &nbsp;&nbsp; 249066 |
| 190000 | Microchip Technology, Inc., Sr. Unsecd. Note, 5.050%, 3/15/2029 | &nbsp;&nbsp; 193716 |
| 106000 | Oracle Corp., Sr. Unsecd. Note, 2.950%, 4/1/2030 | &nbsp;&nbsp; 97856 |
| 363000 | Oracle Corp., Sr. Unsecd. Note, 4.000%, 11/15/2047 | &nbsp;&nbsp; 249269 |
| 196000 | Oracle Corp., Sr. Unsecd. Note, 4.900%, 2/6/2033 | &nbsp;&nbsp; 188629 |
| 1000000 | Qualcomm, Inc., Sr. Unsecd. Note, 5.000%, 5/20/2035 | &nbsp;&nbsp; 1015426 |
| 371000 | Roper Technologies, Inc., Sr. Unsecd. Note, 2.000%, 6/30/2030 | &nbsp;&nbsp; 335627 |
| 160000 | Trimble, Inc., Sr. Unsecd. Note, 6.100%, 3/15/2033 | &nbsp;&nbsp; 172279 |
| 328000 | Verisign, Inc., Sr. Unsecd. Note, 2.700%, 6/15/2031 | &nbsp;&nbsp; 298605 |
| 321000 | Verisk Analytics, Inc., Sr. Unsecd. Note, 4.125%, 3/15/2029 | &nbsp;&nbsp; 320364 |
| 197000 | Visa, Inc., Sr. Unsecd. Note, 4.150%, 12/14/2035 | &nbsp;&nbsp; 191667 |
|  | TOTAL | &nbsp;&nbsp; 10181562 |
|  | **Transportation - Railroads—0.3%** |  |
| 180500 | Burlington Northern Santa Fe LLC, Sr. Unsecd. Note, 4.450%, 3/15/2043 | &nbsp;&nbsp; 160499 |
| 136000<br><sup>2</sup> <br>| Burlington Northern Santa Fe LLC, Sr. Unsecd. Note, 5.200% (180-DAY AVERAGE SOFR +0.000%), 4/15/2054 | &nbsp;&nbsp; 127991 |
| 180000 | Canadian Pacific Railway Co., Sr. Unsecd. Note, 1.750%, 12/2/2026 | &nbsp;&nbsp; 176486 |
| 517000 | Union Pacific Corp., Sr. Unsecd. Note, 2.400%, 2/5/2030 | &nbsp;&nbsp; 483979 |
|  | TOTAL | &nbsp;&nbsp; 948955 |
|  | **Transportation - Services—0.4%** |  |
| 150500 | Enterprise Rent-A-Car USA Finance Co., Sr. Unsecd. Note, 144A, 4.600%, 5/1/2028 | &nbsp;&nbsp; 152469 |
| 275000 | GXO Logistics, Inc., Sr. Unsecd. Note, 6.250%, 5/6/2029 | &nbsp;&nbsp; 289613 |
| 463500 | Penske Truck Leasing Co. LP & PTL Finance Corp., Sr. Unsecd. Note, 144A, 5.550%, 5/1/2028 | &nbsp;&nbsp; 476727 |
| 190000 | Ryder System, Inc., Sr. Unsecd. Note, Series DMTN, 4.900%, 12/1/2029 | &nbsp;&nbsp; 193940 |
| 135000 | Ryder System, Inc., Sr. Unsecd. Note, Series MTN, 5.650%, 3/1/2028 | &nbsp;&nbsp; 139274 |
| 298000 | United Parcel Service, Inc., Sr. Unsecd. Note, 4.875%, 3/3/2033 | &nbsp;&nbsp; 306924 |
|  | TOTAL | &nbsp;&nbsp; 1558947 |
|  | **Utility - Electric—2.0%** |  |
| 279000 | Ameren Corp., Sr. Unsecd. Note, 1.750%, 3/15/2028 | &nbsp;&nbsp; 265213 |
| 376500 | American Electric Power Co., Inc., Sr. Unsecd. Note, 5.625%, 3/1/2033 | &nbsp;&nbsp; 395399 |
| 230000 | Commonwealth Edison Co., 3.650%, 6/15/2046 | &nbsp;&nbsp; 175713 |
| 195000 | Consolidated Edison Co., Sr. Unsecd. Note, 4.625%, 12/1/2054 | &nbsp;&nbsp; 164207 |
| 440500 | Constellation Energy Generation LLC, Sr. Unsecd. Note, 5.800%, 3/1/2033 | &nbsp;&nbsp; 470090 |
| 252000 | Dominion Energy, Inc., Sr. Unsecd. Note, Series C, 3.375%, 4/1/2030 | &nbsp;&nbsp; 243139 |
| 325000 | Duke Energy Corp., Sr. Unsecd. Note, 4.500%, 8/15/2032 | &nbsp;&nbsp; 323927 |
| 389000 | Duke Energy Corp., Sr. Unsecd. Note, 5.000%, 8/15/2052 | &nbsp;&nbsp; 343422 |
| 83000 | Duke Energy Indiana, LLC, Sr. Deb., 6.120%, 10/15/2035 | &nbsp;&nbsp; 89834 |
| 250000 | EDP Finance B.V., Sr. Unsecd. Note, 144A, 1.710%, 1/24/2028 | &nbsp;&nbsp; 237948 |
| 275000 | Electricite de France S.A., Sr. Unsecd. Note, 144A, 6.250%, 5/23/2033 | &nbsp;&nbsp; 297940 |
| 300000 | Emera US Finance LP, Sr. Unsecd. Note, 3.550%, 6/15/2026 | &nbsp;&nbsp; 299030 |
| 500000 | Enel Finance International NV, Sr. Unsecd. Note, 144A, 4.375%, 9/30/2030 | &nbsp;&nbsp; 497886 |

---

Semi-Annual Financial Statements and Additional Information

**9**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | CORPORATE BONDS—continued |  |
|  | **Utility - Electric—continued** |  |
| $77000 | Exelon Corp., Bond, 7.600%, 4/1/2032 | &nbsp;&nbsp; $88687 |
| 262500 | Exelon Corp., Sr. Unsecd. Note, 4.100%, 3/15/2052 | &nbsp;&nbsp; 202554 |
| 190000 | FirstEnergy Corp., Sr. Unsecd. Note, Series B, 3.900%, 7/15/2027 | &nbsp;&nbsp; 189242 |
| 600000 | MidAmerican Energy Co., 5.500%, 11/15/2056 | &nbsp;&nbsp; 587063 |
| 40000 | National Rural Utilities Cooperative Finance Corp., Sec. Fac. Bond, 4.150%, 12/15/2032 | &nbsp;&nbsp; 39098 |
| 231000 | National Rural Utilities Cooperative Finance Corp., Sr. Sub. Note, 5.250%, 4/20/2046 | &nbsp;&nbsp; 230676 |
| 583000 | NextEra Energy Capital Holdings, Inc., Sr. Unsecd. Note, 2.250%, 6/1/2030 | &nbsp;&nbsp; 536152 |
| 437000 | NiSource, Inc., Sr. Unsecd. Note, 1.700%, 2/15/2031 | &nbsp;&nbsp; 383472 |
| 200000 | Peco Energy Co., 2.800%, 6/15/2050 | &nbsp;&nbsp; 125168 |
| 277500 | Public Service Enterprises Group, Inc., Sr. Unsecd. Note, 2.450%, 11/15/2031 | &nbsp;&nbsp; 248176 |
| 30000 | Public Service Enterprises Group, Inc., Sr. Unsecd. Note, 5.400%, 3/15/2035 | &nbsp;&nbsp; 30824 |
| 215000 | Southern Power Co., Sr. Unsecd. Note, Series A, 4.250%, 10/1/2030 | &nbsp;&nbsp; 214425 |
| 348000 | Virginia Electric & Power Co., Sr. Unsecd. Note, 2.400%, 3/30/2032 | &nbsp;&nbsp; 309364 |
| 192000 | WEC Energy Group, Inc., Sr. Unsecd. Note, 2.200%, 12/15/2028 | &nbsp;&nbsp; 182361 |
|  | TOTAL | &nbsp;&nbsp; 7171010 |
|  | **Utility - Natural Gas—0.0%** |  |
| 100000 | Sempra Energy, Sr. Unsecd. Note, 6.000%, 10/15/2039 | &nbsp;&nbsp; 104105 |
|  | **Utility - Natural Gas Distributor—0.2%** |  |
| 280000 | Southern California Gas Co., Term Loan - 1st Lien, 5.050%, 9/1/2034 | &nbsp;&nbsp; 284485 |
| 435000 | Southern Co. Gas Capital, Sr. Unsecd. Note, Series 20-A, 1.750%, 1/15/2031 | &nbsp;&nbsp; 384866 |
|  | TOTAL | &nbsp;&nbsp; 669351 |
|  | TOTAL CORPORATE BONDS <br>(IDENTIFIED COST $84,576,567)<br>| &nbsp;&nbsp; 85718727 |
|  | MORTGAGE-BACKED SECURITIES—3.1% |  |
|  | **Federal Home Loan Mortgage Corporation—2.2%** |  |
| 4161405 | Federal Home Loan Mortgage Corp., Pool SD8193, 2.000%, 2/1/2052 | &nbsp;&nbsp; 3373677 |
| 2476179 | Federal Home Loan Mortgage Corp., Pool SD8213, 3.000%, 5/1/2052 | &nbsp;&nbsp; 2196241 |
| 2505029 | Federal Home Loan Mortgage Corp., Pool SD8242, 3.000%, 9/1/2052 | &nbsp;&nbsp; 2221047 |
|  | TOTAL | &nbsp;&nbsp; 7790965 |
|  | **Federal National Mortgage Association—0.9%** |  |
| 1731793 | Federal National Mortgage Association, Pool FS4947, 4.000%, 1/1/2053 | &nbsp;&nbsp; 1651713 |
| 1525918 | Federal National Mortgage Association, Pool FS6809, 5.500%, 2/1/2054 | &nbsp;&nbsp; 1552451 |
|  | TOTAL | &nbsp;&nbsp; 3204164 |
|  | TOTAL MORTGAGE-BACKED SECURITIES <br>(IDENTIFIED COST $10,667,913)<br>| &nbsp;&nbsp; 10995129 |
|  | ASSET-BACKED SECURITIES—2.4% |  |
|  | **Auto Receivables—1.1%** |  |
| 104784 | BMW Vehicle Lease Trust 2024-1, Class A3, 4.980%, 3/25/2027 | &nbsp;&nbsp; 105104 |
| 100000 | Chesapeake Funding II LLC 2024-1A, Class B, 5.440%, 5/15/2036 | &nbsp;&nbsp; 100782 |
| 52066 | Enterprise Fleet Financing LLC 2024-1, Class A2, 5.230%, 3/20/2030 | &nbsp;&nbsp; 52488 |
| 325000 | Enterprise Fleet Financing LLC 2025-2, Class A4, 4.580%, 12/22/2031 | &nbsp;&nbsp; 330141 |
| 600000 | Honda Auto Receivables Owner Trust 2025-2, Class A4, 4.280%, 8/15/2031 | &nbsp;&nbsp; 606713 |
| 750000 | Navistar Financial Dealer Note Master Trust 2024-1, Class A, 5.590%, 4/25/2029 | &nbsp;&nbsp; 753727 |
| 874609 | SBNA Auto Lease Trust 2024-C, Class A3, 4.560%, 2/22/2028 | &nbsp;&nbsp; 876807 |
| 1000000 | Toyota Lease Owner Trust 2024-B, Class A3, 4.210%, 9/20/2027 | &nbsp;&nbsp; 1001809 |
| 169104 | World OMNI Select Auto Trust 2024-A, Class A3, 4.860%, 3/15/2029 | &nbsp;&nbsp; 170058 |
|  | TOTAL | &nbsp;&nbsp; 3997629 |
|  | **Credit Card—0.2%** |  |
| 500000 | American Express Credit Account Master Trust 2024-1, Class A, 5.230%, 4/15/2029 | &nbsp;&nbsp; 509436 |
| 175000 | First National Master Note Trust 2024-1, Class A, 5.340%, 5/15/2030 | &nbsp;&nbsp; 178496 |
|  | TOTAL | &nbsp;&nbsp; 687932 |

---

Semi-Annual Financial Statements and Additional Information

**10**

------

---

| | | |
|:---|:---|:---|
| **Principal**<br> **Amount, Shares**<br> **or Contracts**<br>|  | **Value** |
|  | ASSET-BACKED SECURITIES—continued |  |
|  | **Equipment Lease—1.1%** |  |
| $300000 | Dell Equipment Finance Trust 2025-2, Class C, 4.530%, 3/24/2031 | &nbsp;&nbsp; $300808 |
| 1000000 | DLLAD LLC 2024-1A, Class A3, 5.300%, 7/20/2029 | &nbsp;&nbsp; 1021483 |
| 1000000 | John Deere Owner Trust 2024-B, Class A3, 5.200%, 3/15/2029 | &nbsp;&nbsp; 1014202 |
| 1000000 | John Deere Owner Trust 2024-C, Class A3, 4.060%, 6/15/2029 | &nbsp;&nbsp; 1003414 |
| 650000 | Volvo Financial Equipment LLC 2024-1A, Class A3, 4.290%, 10/16/2028 | &nbsp;&nbsp; 653195 |
|  | TOTAL | &nbsp;&nbsp; 3993102 |
|  | TOTAL ASSET-BACKED SECURITIES <br>(IDENTIFIED COST $8,599,224)<br>| &nbsp;&nbsp; 8678663 |
|  | COMMERCIAL MORTGAGE-BACKED SECURITIES—0.7% |  |
|  | **Commercial Mortgage—0.7%** |  |
| 1000000 | Bank 2024-BNK48 A4, Class A4, 4.775%, 10/15/2057 | &nbsp;&nbsp; 1005413 |
| 140000 | Barclays Commercial Mortgage S 2025-C35, Class A4, 5.289%, 7/15/2058 | &nbsp;&nbsp; 143461 |
| 500000<br><sup>2</sup> <br>| JW Commercial Mortgage Trust 2 2024-BERY, Class A, 5.343% (CME Term SOFR 1 Month +1.593%), 11/15/2039 | &nbsp;&nbsp; 499999 |
| 850000<br><sup>2</sup> <br>| ORL Trust 2024-GLKS, Class B, 5.642% (CME Term SOFR 1 Month +1.892%), 12/15/2039 | &nbsp;&nbsp; 851851 |
|  | TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES <br>(IDENTIFIED COST $2,497,967)<br>| &nbsp;&nbsp; 2500724 |
|  | FOREIGN GOVERNMENTS/AGENCIES—0.6% |  |
|  | **Sovereign—0.6%** |  |
| AUD 750,000 | Australia, Government of, Sr. Unsecd. Note, Series 154, 2.750%, 11/21/2029 | &nbsp;&nbsp; 474496 |
| COP 3,500,000,000 | Colombia, Government of, Sr. Unsecd. Note, Series B, 6.000%, 4/28/2028 | &nbsp;&nbsp; 810049 |
| BRL 5,000,000 | Nota Do Tesouro Nacional, Unsecd. Note, Series NTNF, 10.000%, 1/1/2031 | &nbsp;&nbsp; 801292 |
|  | TOTAL FOREIGN GOVERNMENTS/AGENCIES <br>(IDENTIFIED COST $2,138,638)<br>| &nbsp;&nbsp; 2085837 |
|  | PURCHASED CALL OPTIONS—0.0% |  |
| $3000000 | Bank of America Merrill Lynch USD CALL/COP PUT, Notional Amount $11,304,630,000, Exercise Price $3975, <br> Expiration Date 2/4/2026<br>| &nbsp;&nbsp; 20919 |
| 100000 | United States Treasury, 0.000%, Notional Amount $11,243,750, Exercise Price $113, Expiration Date 1/24/2026 | &nbsp;&nbsp; 23437 |
|  | TOTAL PURCHASED CALL OPTIONS <br>(IDENTIFIED COST $115,649)<br>| &nbsp;&nbsp; 44356 |
|  | PURCHASED PUT OPTION—0.0% |  |
| 2000000 | Toronto Dominion USD PUT/CAD CALL, Notional Amount $2,740,000, Exercise Price $1.385, Expiration Date <br> 1/29/2026 <br>(IDENTIFIED COST $19,200)<br>| &nbsp;&nbsp; 23976 |
|  | EXCHANGE-TRADED FUNDS—10.6% |  |
| 239020 | iShares MBS ETF | &nbsp;&nbsp; 22759484 |
| 318620 | Vanguard Mortgage-Backed Securities ETF | &nbsp;&nbsp; 15000630 |
|  | TOTAL EXCHANGE-TRADED FUNDS <br>(IDENTIFIED COST $36,875,295)<br>| &nbsp;&nbsp; 37760114 |
|  | INVESTMENT COMPANIES—26.7% |  |
| 362434 | Bank Loan Core Fund | &nbsp;&nbsp; 3106054 |
| 1219012 | Emerging Markets Core Fund | &nbsp;&nbsp; 11068631 |
| 3966758 | Federated Hermes Government Obligations Fund, Premier Shares, 3.68%<sup>3</sup> <br>| &nbsp;&nbsp; 3966758 |
| 1919700 | High Yield Bond Core Fund | &nbsp;&nbsp; 11019079 |
| 5435054 | Mortgage Core Fund | &nbsp;&nbsp; 46089255 |
| 2187061 | Project and Trade Finance Core Fund | &nbsp;&nbsp; 19508586 |
|  | TOTAL INVESTMENT COMPANIES <br>(IDENTIFIED COST $92,391,196)<br>| &nbsp;&nbsp; 94758363 |
|  | TOTAL INVESTMENT IN SECURITIES—100.1% <br>(IDENTIFIED COST $349,799,533)<sup>4</sup> <br>| &nbsp;&nbsp; 355923864 |
|  | OTHER ASSETS AND LIABILITIES - NET—(0.1)%<sup>5</sup> <br>| &nbsp;&nbsp; (363389) |
|  | NET ASSETS—100% | &nbsp;&nbsp; $355560475 |

---

Semi-Annual Financial Statements and Additional Information

**11**

------

At December 31, 2025, the Fund had the following outstanding futures contracts:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Number of** <br>**Contracts**<br>| &nbsp;&nbsp; **Notional** <br>**Value**<br>| &nbsp;&nbsp;&nbsp; **Expiration** <br>**Date**<br>| &nbsp;&nbsp; **Value and** <br>**Unrealized** <br>**Appreciation** <br>**(Depreciation)**<br>|
| **Long Futures:** |  |  |  |  |
| United States Treasury Long Bond Long Futures | &nbsp;&nbsp; 50 | &nbsp;&nbsp;&nbsp; $5779688 | March 2026 | &nbsp;&nbsp;&nbsp; $(14553) |
| United States Treasury Notes 2-Year Long Futures | &nbsp;&nbsp; 300 | &nbsp;&nbsp;&nbsp; $62636719 | March 2026 | &nbsp;&nbsp;&nbsp; $15901 |
| United States Treasury Ultra Bond Long Futures | &nbsp;&nbsp; 17 | &nbsp;&nbsp;&nbsp; $2006000 | March 2026 | &nbsp;&nbsp;&nbsp; $(1915) |
| NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | NET UNREALIZED DEPRECIATION ON FUTURES CONTRACTS | &nbsp;&nbsp;&nbsp; $(567) |

---

At December 31, 2025, the Fund had the following outstanding foreign exchange contracts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Settlement** <br>**Date**<br>| **Counterparty** | **Foreign** <br>**Currency** <br>**Units to** <br>**Deliver/Receive** | **Foreign** <br>**Currency** <br>**Units to** <br>**Deliver/Receive** | &nbsp;&nbsp; **In** <br>**Exchange** <br>**For**<br>| **Net Unrealized** <br>**Appreciation/** <br>**(Depreciation)**<br>|
| **Contracts Purchased:** |  |  |  |  |  |
| 1/15/2026 | Wells Fargo | &nbsp;&nbsp; 1000000 | EUR | $1176073 | &nbsp;&nbsp; $(316) |
| 1/15/2026 | Wells Fargo | &nbsp;&nbsp; 2000000 | GBP | $2668896 | &nbsp;&nbsp; $26978 |
| **Contracts Sold:** |  |  |  |  |  |
| 1/15/2026 | Morgan Stanley | &nbsp;&nbsp; 2000000 | GBP | $2683530 | &nbsp;&nbsp; $(12344) |
| NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | NET UNREALIZED APPRECIATION ON FOREIGN EXCHANGE CONTRACTS | &nbsp;&nbsp; $14318 |

---

At December 31, 2025, the Fund had the following open swap contracts:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** | **Credit Default Swap** |
| **Counterparty** | **Reference** <br>**Entity**<br>| **Buy/** <br>**Sell**<br>| **Pay/** <br>**Receive** <br>**Fixed Rate**<br>| **Expiration** <br>**Date**<br>| **Implied** <br>**Credit** <br>**Spread at** <br>**12/31/2025**<sup>6</sup> <br>| **Notional** <br>**Amount**<br>| **Market** <br>**Value**<br>| **Upfront** <br>**Premiums** <br>**Paid/** <br>**(Received)**<br>| **Unrealized** <br>**Appreciation** <br>**(Depreciation)**<br>|
| **OTC Swap:** |  |  |  |  |  |  |  |  |  |
| Merrill Lynch | CDX Index NA IG Series 45 | Buy | 1.000% | 12/20/2030 | 0.50% | $15000000 | $(340218) | $(339121) | $(1097) |

---

At December 31, 2025, the Fund had the following outstanding written options contracts:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Description** | **Number of** <br>**Contracts**<br>| **Notional** <br>**Amount**<br>| &nbsp;&nbsp; **Expiration** <br>**Date**<br>| **Exercise** <br>**Price**<br>| **Value** |
| **Call Options:** |  |  |  |  |  |  |
| Bank of America | USD CALL/COP PUT | &nbsp;&nbsp; (5000000) | &nbsp;&nbsp; $5000000 | February 2026 | &nbsp;&nbsp; $4175.00 | &nbsp;&nbsp; $(8050) |
| Barclays | EUR CALL/USD PUT | &nbsp;&nbsp; (2000000) | &nbsp;&nbsp; $2000000 | January 2026 | &nbsp;&nbsp; $1.18 | &nbsp;&nbsp; $(6200) |
| Morgan Stanley | GBP CALL/USD PUT | &nbsp;&nbsp; (1500000) | &nbsp;&nbsp; $1500000 | March 2026 | &nbsp;&nbsp; $1.35 | &nbsp;&nbsp; $(15318) |
| Toronto Dominion | USD CALL/CAD PUT | &nbsp;&nbsp; (2000000) | &nbsp;&nbsp; $2000000 | January 2026 | &nbsp;&nbsp; $1.40 | &nbsp;&nbsp; $(986) |
| UBS | USD CALL/NOK PUT | &nbsp;&nbsp; (3000000) | &nbsp;&nbsp; $3000000 | February 2026 | &nbsp;&nbsp; $10.35 | &nbsp;&nbsp; $(10362) |
| Wells Fargo | United States Treasury | (450) | &nbsp;&nbsp; $93948047 | January 2026 | &nbsp;&nbsp; $104.63 | &nbsp;&nbsp; $(42187) |
| Wells Fargo | United States Treasury | (100) | &nbsp;&nbsp; $11243750 | January 2026 | &nbsp;&nbsp; $113.50 | &nbsp;&nbsp; $(10938) |
| **Put Options:** |  |  |  |  |  |  |
| Bank of America | USD PUT/COP CALL | &nbsp;&nbsp; (3000000) | &nbsp;&nbsp; $3000000 | February 2026 | &nbsp;&nbsp; $3800.00 | &nbsp;&nbsp; $(33792) |
| Bank of America | USD PUT/CAD CALL | &nbsp;&nbsp; (2000000) | &nbsp;&nbsp; $2000000 | January 2026 | &nbsp;&nbsp; $1.37 | &nbsp;&nbsp; $(9748) |
| Barclays | GBP PUT/USD CALL | &nbsp;&nbsp; (3000000) | &nbsp;&nbsp; $3000000 | March 2026 | &nbsp;&nbsp; $1.33 | &nbsp;&nbsp; $(17946) |
| UBS | USD PUT/NOK CALL | &nbsp;&nbsp; (3000000) | &nbsp;&nbsp; $3000000 | February 2026 | &nbsp;&nbsp; $9.85 | &nbsp;&nbsp; $(10341) |
| UBS | USD PUT/CAD CALL | &nbsp;&nbsp; (2000000) | &nbsp;&nbsp; $2000000 | January 2026 | &nbsp;&nbsp; $1.36 | &nbsp;&nbsp; $(4590) |
| Wells Fargo | United States Treasury | (100) | &nbsp;&nbsp; $11243750 | January 2026 | &nbsp;&nbsp; $112.00 | &nbsp;&nbsp; $(26563) |
| (Premium Received $351,424) | (Premium Received $351,424) | (Premium Received $351,424) | (Premium Received $351,424) | (Premium Received $351,424) | (Premium Received $351,424) | &nbsp;&nbsp; $(197021) |

---

Net Unrealized Appreciation/Depreciation on Futures Contracts, Foreign Exchange Contracts, the value of Written Option Contracts and Swaps Contracts is included in "Other Assets and Liabilities–Net."

Semi-Annual Financial Statements and Additional Information

**12**

------

Transactions with affiliated investment companies, which are funds managed by the Adviser or an affiliate of the Adviser, during the period ended December 31, 2025, were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Affiliates** | **Value as of** <br>**6/30/2025**<br>| **Purchases** <br>**at Cost**<br>| **Proceeds** <br>**from Sales**<br>| **Change in** <br>**Unrealized** <br>**Appreciation/** <br>**Depreciation**<br>| **Net** <br>**Realized** <br>**Gain/** <br>**(Loss)**<br>| **Value as of** <br>**12/31/2025**<br>| **Shares** <br>**Held as of** <br>**12/31/2025**<br>| **Dividend** <br>**Income**<br>|
| Bank Loan Core Fund | $605948 | $2500000 | $— | $106 | $— | $3106054 | 362434 | $34292 |
| Emerging Markets Core Fund | $10054366 | $700000 | $— | $314265 | $— | $11068631 | 1219012 | $577338 |
| Federated Hermes Government Obligations Fund, <br> Premier Shares, 3.68%<br>| $3445277 | $42676546 | $(42155065) | $— | $— | $3966758 | 3966758 | $69815 |
| High Yield Bond Core Fund | $10242815 | $700000 | $— | $76264 | $— | $11019079 | 1919700 | $329329 |
| Mortgage Core Fund | $45273997 | $— | $— | $815258 | $— | $46089255 | 5435054 | $1139666 |
| Project and Trade Finance Core Fund | $12975426 | $6500000 | $— | $33160 | $— | $19508586 | 2187061 | $583296 |
| TOTAL OF AFFILIATED TRANSACTIONS | $82597829 | $53076546 | $(42155065) | $1239053 | $— | $94758363 | 15090019 | $2733736 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 1 | All or a portion of this security is pledged as collateral to ensure the Fund is able to satisfy the obligations of its outstanding futures and options contracts. |
| 2 | Floating/adjustable note with current rate and current maturity or next reset date shown. Adjustable rate mortgage security coupons are based on the weighted <br> average note rates of the underlying mortgages less the guarantee and servicing fees. These securities do not indicate an index and spread in their description <br> above.<br>|
| 3 | 7-day net yield. |
| 4 | Also represents cost of investments for federal tax purposes. |
| 5 | Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities. |
| 6 | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements serve as an indicator of the <br> current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular <br> referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit <br> spreads represent a deterioration of the referenced entity's credit soundness and a greater likelihood or risk of default or other credit event occurring as defined <br> under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced entity or obligation.<br>|

---

Note: The categories of investments are shown as a percentage of net assets at December 31, 2025.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below:

Level 1—quoted prices in active markets for identical securities.

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Also includes securities valued at amortized cost.

Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

Semi-Annual Financial Statements and Additional Information

**13**

------

The following is a summary of the inputs used, as of December 31, 2025, in valuing the Fund's assets carried at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Valuation Inputs** | **Valuation Inputs** | **Valuation Inputs** | **Valuation Inputs** | **Valuation Inputs** |
|  | **Level 1—** <br>**Quoted** <br>**Prices**<br>| **Level 2—** <br>**Other** <br>**Significant** <br>**Observable** <br>**Inputs**<br>| **Level 3—** <br>**Significant** <br>**Unobservable** <br>**Inputs**<br>| **Total** |
| **Debt Securities:** |  |  |  |  |
| U.S. Treasuries | &nbsp;&nbsp; $— | &nbsp;&nbsp; $113357975 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $113357975 |
| Corporate Bonds | &nbsp;&nbsp; — | &nbsp;&nbsp; 85718727 | &nbsp;&nbsp; — | &nbsp;&nbsp; 85718727 |
| Mortgage-Backed Securities | &nbsp;&nbsp; — | &nbsp;&nbsp; 10995129 | &nbsp;&nbsp; — | &nbsp;&nbsp; 10995129 |
| Asset-Backed Securities | &nbsp;&nbsp; — | &nbsp;&nbsp; 8678663 | &nbsp;&nbsp; — | &nbsp;&nbsp; 8678663 |
| Commercial Mortgage-Backed Securities | &nbsp;&nbsp; — | &nbsp;&nbsp; 2500724 | &nbsp;&nbsp; — | &nbsp;&nbsp; 2500724 |
| Foreign Governments/Agencies | &nbsp;&nbsp; — | &nbsp;&nbsp; 2085837 | &nbsp;&nbsp; — | &nbsp;&nbsp; 2085837 |
| **Purchased Call Options** | &nbsp;&nbsp; 23437 | &nbsp;&nbsp; 20919 | &nbsp;&nbsp; — | &nbsp;&nbsp; 44356 |
| **Purchased Put Option** | &nbsp;&nbsp; — | &nbsp;&nbsp; 23976 | &nbsp;&nbsp; — | &nbsp;&nbsp; 23976 |
| **Exchange-Traded Funds** | &nbsp;&nbsp; 37760114 | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 37760114 |
| **Investment Companies** | &nbsp;&nbsp; 75249777 | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 75249777 |
| Other Investments<sup>1</sup> <br>| &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 19508586 |
| TOTAL SECURITIES | &nbsp;&nbsp; $113033328 | &nbsp;&nbsp; $223381950 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $355923864 |
| **Other Financial Instruments:** |  |  |  |  |
| **Assets** |  |  |  |  |
| Futures Contracts | &nbsp;&nbsp; $15901 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $— | &nbsp;&nbsp; $15901 |
| Foreign Exchange Contracts | &nbsp;&nbsp; — | &nbsp;&nbsp; 26978 | &nbsp;&nbsp; — | &nbsp;&nbsp; 26978 |
| **Liabilities** |  |  |  |  |
| Futures Contracts | &nbsp;&nbsp; (16468) | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (16468) |
| Foreign Exchange Contracts | &nbsp;&nbsp; — | &nbsp;&nbsp; (12660) | &nbsp;&nbsp; — | &nbsp;&nbsp; (12660) |
| Swap Contracts | &nbsp;&nbsp; — | &nbsp;&nbsp; (340218) | &nbsp;&nbsp; — | &nbsp;&nbsp; (340218) |
| Written Options Contracts | &nbsp;&nbsp; (79688) | &nbsp;&nbsp; (117333) | &nbsp;&nbsp; — | &nbsp;&nbsp; (197021) |
| TOTAL OTHER FINANCIAL INSTRUMENTS | &nbsp;&nbsp; $(80255) | &nbsp;&nbsp; $(443233) | &nbsp;&nbsp; $— | &nbsp;&nbsp; $(523488) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 1 | As permitted by U.S. generally accepted accounting principles (GAAP), an Investment Company valued at $19,508,586 is measured at fair value using the net <br> asset value (NAV) per share practical expedient and has not been categorized in the chart above. The price of shares redeemed of Federated Project and Trade <br> Finance Core Fund may be determined as of the closing NAV of the fund up to twenty-four days after receipt of a shareholder redemption request.<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| The following acronym(s) are used throughout this portfolio: | The following acronym(s) are used throughout this portfolio: |
| AUD | —Australian Dollar |
| BKNT | —Bank Notes |
| BRL | —Brazilian Real |
| CAD | —Canadian Dollar |
| COP | —Colombian Peso |
| ETF | —Exchange-Traded Fund |
| EUR | —Euro |
| GBP | —British Pound |
| GMTN | —Global Medium Term Note |
| MTN | —Medium Term Note |
| NOK | —Norwegian Krone |
| REIT | —Real Estate Investment Trust |
| SOFR | —Secured Overnight Financing Rate |
| USD | —United States Dollar |

---

See Notes which are an integral part of the Financial Statements

Semi-Annual Financial Statements and Additional Information

**14**

------

Financial Highlights

(For a Share Outstanding Throughout Each Period)

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months** <br>**Ended** <br>(unaudited)<br>**12/31/2025** | **Year Ended**<br>**6/30/2025** | **Period** <br>**Ended**<br>**6/30/2024**<sup>1</sup> |
| **Net Asset Value, Beginning of Period** | &nbsp;&nbsp; **$25.08** | &nbsp;&nbsp; **$24.64** | &nbsp;&nbsp; **$25.00** |
| **Income From Investment Operations:** |  |  |  |
| Net investment income (loss)<sup>2</sup> <br>| 0.60 | 1.12 | 0.55 |
| Net realized and unrealized gain (loss) | 0.29 | 0.39 | &nbsp;&nbsp; (0.38) |
| TOTAL FROM INVESTMENT OPERATIONS | 0.89 | 1.51 | 0.17 |
| **Less Distributions:** |  |  |  |
| Distributions from net investment income | &nbsp;&nbsp; (0.61) | &nbsp;&nbsp; (1.07) | &nbsp;&nbsp; (0.53) |
| **Net Asset Value, End of Period** | &nbsp;&nbsp; **$25.36** | &nbsp;&nbsp; **$25.08** | &nbsp;&nbsp; **$24.64** |
| **Total Return**<sup>3</sup> <br>| &nbsp;&nbsp; 3.59% | &nbsp;&nbsp; 6.24% | &nbsp;&nbsp; 0.71% |
| **Ratios to Average Net Assets:** |  |  |  |
| Net expenses<sup>4</sup> <br>| &nbsp;&nbsp; 0.37%<sup>5</sup> <br>| &nbsp;&nbsp; 0.37% | &nbsp;&nbsp; 0.37%<sup>5</sup> <br>|
| Net investment income | &nbsp;&nbsp; 4.71%<sup>5</sup> <br>| &nbsp;&nbsp; 4.50% | &nbsp;&nbsp; 4.56%<sup>5</sup> <br>|
| Expense waiver/reimbursement<sup>6</sup> <br>| &nbsp;&nbsp; 0.10%<sup>5</sup> <br>| &nbsp;&nbsp; 0.11% | &nbsp;&nbsp; 0.14%<sup>5</sup> <br>|
| **Supplemental Data:** |  |  |  |
| Net assets, end of period (000 omitted) | &nbsp;&nbsp; $355560 | &nbsp;&nbsp; $326553 | &nbsp;&nbsp; $95118 |
| Portfolio turnover<sup>7</sup> <br>| &nbsp;&nbsp; 21% | &nbsp;&nbsp; 88% | &nbsp;&nbsp; 63% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 1 | Reflects operations for the period from January 3, 2024 (commencement of operations) to June 30, 2024. |
| 2 | Per share numbers have been calculated using the average shares method. |
| 3 | Based on net asset value. Total returns for periods of less than one year are not annualized. |
| 4 | Amount does not reflect net expenses incurred by investment companies in which the Fund may invest. |
| 5 | Computed on an annualized basis. |
| 6 | This expense decrease is reflected in both the net expense and the net investment income ratios shown above. Amount does not reflect expense waiver/<br> reimbursement recorded by investment companies in which the Fund may invest.<br>|
| 7 | Securities that mature are considered sales for purposes of this calculation. |

---

See Notes which are an integral part of the Financial Statements

Semi-Annual Financial Statements and Additional Information

**15**

------

Statement of Assets and Liabilities

December 31, 2025 (unaudited)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| **Assets:** |  |
| Investment in securities, at value including $94,758,363 of investments in affiliated holdings\* (identified cost $349,799,533, including <br> $92,391,196 of identified cost in affiliated holdings)<br>| &nbsp;&nbsp; 355923864 |
| Due from broker (Note 2) | &nbsp;&nbsp; 1497 |
| Income receivable | &nbsp;&nbsp; 1754517 |
| Income receivable from affiliated holdings | &nbsp;&nbsp; 476455 |
| Receivable for investments sold | &nbsp;&nbsp; 15003750 |
| Unrealized appreciation on foreign exchange contracts | &nbsp;&nbsp; 26978 |
| Total Assets | &nbsp;&nbsp; 373187061 |
| **Liabilities:** |  |
| Payable for investments purchased | &nbsp;&nbsp; 14660692 |
| Written options outstanding, at value (premium received $351,424) | &nbsp;&nbsp; 197021 |
| Unrealized depreciation on foreign exchange contracts | &nbsp;&nbsp; 12660 |
| Payable to bank | &nbsp;&nbsp; 226272 |
| Payable for variation margin on futures contracts | &nbsp;&nbsp; 38403 |
| Payable for periodic payments to swap contracts | &nbsp;&nbsp; 4167 |
| Swaps, at value (premium received $339,121) | &nbsp;&nbsp; 340218 |
| Income distribution payable | &nbsp;&nbsp; 2034302 |
| Payable for investment adviser fee (Note 5) | &nbsp;&nbsp; 112851 |
| Total Liabilities | &nbsp;&nbsp; 17626586 |
| Net assets for 14,020,000 shares outstanding | &nbsp;&nbsp; $355560475 |
| **Net Assets Consist of:** |  |
| Paid-in capital | &nbsp;&nbsp; $353553191 |
| Total distributable earnings (loss) | &nbsp;&nbsp; 2007284 |
| Net Assets | &nbsp;&nbsp; $355560475 |
| **Net Asset Value, Offering Price and Redemption Proceeds Per Share:** |  |
| $355,560,475 ÷ 14,020,000 shares outstanding, no par value, unlimited shares authorized | $25.36 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* See information listed after the Fund's Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Semi-Annual Financial Statements and Additional Information

**16**

------

Statement of Operations

Six Months Ended December 31, 2025 (unaudited)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| **Investment Income:** |  |
| Interest | &nbsp;&nbsp; $4993758 |
| Dividends (including $2,733,736 received from affiliated holdings\* and net of foreign taxes withheld of $1,878) | &nbsp;&nbsp; 3629940 |
| TOTAL INCOME | &nbsp;&nbsp; 8623698 |
| **Expenses:** |  |
| Investment adviser fee (Note 5) | &nbsp;&nbsp; 797766 |
| Waiver/reimbursement of investment adviser fee (Note 5) | &nbsp;&nbsp; (161416) |
| Net expenses | &nbsp;&nbsp; 636350 |
| Net investment income | &nbsp;&nbsp; 7987348 |
| **Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Transactions, Foreign Exchange Contracts, Futures Contracts,** <br> **Written Options and Swap Contracts:**<br>|  |
| Net realized loss on investments | &nbsp;&nbsp; (182707) |
| Net realized gain on in-kind redemptions | &nbsp;&nbsp; 375548 |
| Net realized loss on foreign currency transactions | &nbsp;&nbsp; (147602) |
| Net realized loss on foreign exchange contracts | &nbsp;&nbsp; (147827) |
| Net realized loss on futures contracts | &nbsp;&nbsp; (82701) |
| Net realized gain on written options | &nbsp;&nbsp; 1558260 |
| Net realized loss on swap contracts | &nbsp;&nbsp; (24904) |
| Net change in unrealized appreciation of investments (including net change in unrealized appreciation of $1,239,053 on investments in affiliated <br> holdings\*)<br>| &nbsp;&nbsp; 2382824 |
| Net change in unrealized appreciation of translation of assets and liabilities in foreign currency | (219) |
| Net change in unrealized appreciation of foreign exchange contracts | &nbsp;&nbsp; 14318 |
| Net change in unrealized appreciation of futures contracts | &nbsp;&nbsp; (119133) |
| Net change in unrealized depreciation of written options | &nbsp;&nbsp; 206926 |
| Net change in unrealized depreciation of swap contracts | &nbsp;&nbsp; (1097) |
| Net realized and unrealized gain (loss) on investments, foreign currency transactions, foreign exchange contracts, futures contracts, written <br> options and swap contracts<br>| &nbsp;&nbsp; 3831686 |
| Change in net assets resulting from operations | &nbsp;&nbsp; $11819034 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* See information listed after the Fund's Portfolio of Investments.

See Notes which are an integral part of the Financial Statements

Semi-Annual Financial Statements and Additional Information

**17**

------

Statement of Changes in Net Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | **Six Months** <br>**Ended** <br>(unaudited) <br>**12/31/2025**<br>| **Year Ended** <br>**6/30/2025**<br>|
| **Increase (Decrease) in Net Assets** |  |  |
| **Operations:** |  |  |
| Net investment income | &nbsp;&nbsp; $7987348 | &nbsp;&nbsp; $10568555 |
| Net realized gain (loss) | &nbsp;&nbsp; 1348067 | &nbsp;&nbsp; (5406461) |
| Net change in unrealized appreciation/depreciation | &nbsp;&nbsp; 2483619 | &nbsp;&nbsp; 3986150 |
| CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | &nbsp;&nbsp; 11819034 | &nbsp;&nbsp; 9148244 |
| **Distributions to Shareholders** | &nbsp;&nbsp; (8237266) | &nbsp;&nbsp; (10561066) |
| **Share Transactions:** |  |  |
| Proceeds from sale of shares | &nbsp;&nbsp; 36587371 | &nbsp;&nbsp; 284192086 |
| Cost of shares redeemed | &nbsp;&nbsp; (11161216) | &nbsp;&nbsp; (51345136) |
| CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS | &nbsp;&nbsp; 25426155 | &nbsp;&nbsp; 232846950 |
| Change in net assets | &nbsp;&nbsp; 29007923 | &nbsp;&nbsp; 231434128 |
| **Net Assets:** |  |  |
| Beginning of period | &nbsp;&nbsp; 326552552 | &nbsp;&nbsp; 95118424 |
| End of period | &nbsp;&nbsp; $355560475 | &nbsp;&nbsp; $326552552 |

---

See Notes which are an integral part of the Financial Statements

Semi-Annual Financial Statements and Additional Information

**18**

------

Notes to Financial Statements

December 31, 2025 (unaudited)

**1. ORGANIZATION** 

Federated Hermes ETF Trust (the "Trust") was organized as a Delaware statutory trust on August 23, 2011 and is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end management investment company. The Trust consists of ten portfolios. The financial statements included herein are only those of Federated Hermes Total Return Bond ETF (the "Fund"). The Fund's investment objective is to provide total return.

Individual shares of the Fund are listed for trading on a national securities exchange during the trading day. The Fund's primary listing exchange is NYSE Arca. Shares can be bought and sold throughout the trading day like shares of other publicly traded companies, and when you buy or sell the Fund's shares in the secondary market, you will pay or receive the market price. However, there can be no guarantee that an active trading market will develop or be maintained, or that the Fund shares listing will continue or remain unchanged.

Shares of the Fund may only be acquired through the Fund's distributor and redeemed directly with the Fund by or through Authorized Participants in large blocks called Creation Units or multiples thereof. Authorized Participants are registered clearing agents that enter into an agreement with the Fund's distributor to transact in Creation Units. Purchases and redemptions of Creation Units will take place in-kind and/or for cash at the discretion of the Fund. The determination of whether purchases and redemptions of Creation Units will be for cash or in-kind depends primarily on the regulatory requirements and settlement mechanisms relevant to the Fund's portfolio holdings and the Fund is not limited to engaging in in-kind transactions to any particular market circumstances.

**2. SIGNIFICANT ACCOUNTING POLICIES** 

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles (GAAP).

**Investment Valuation** 

In calculating its net asset value (NAV), the Fund generally values investments as follows:

■

Fixed-income securities are fair valued using price evaluations provided by a pricing service approved by Federated Investment Management Company (the "Adviser").

■

Equity securities or ETFs listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.

■

Shares of mutual funds or non-exchange-traded investment companies are valued based upon their reported NAVs, or NAV per share practical expedient, as applicable.

■

Derivative contracts listed on exchanges are valued at their reported settlement or closing price, except that options are valued at the mean of closing bid and ask quotations.

■

Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Adviser.

■

For securities that are fair valued in accordance with procedures established by and under the general supervision of the Adviser, certain factors may be considered, such as: the last traded or purchase price of the security, information obtained by contacting the issuer or dealers, analysis of the issuer's financial statements or other available documents, fundamental analytical data, the nature and duration of restrictions on disposition, the movement of the market in which the security is normally traded, public trading in similar securities or derivative contracts of the issuer or comparable issuers, movement of a relevant index, or other factors including but not limited to industry changes and relevant government actions.

If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, if the Fund cannot obtain price evaluations from a pricing service or from more than one dealer for an investment within a reasonable period of time as set forth in the Adviser's valuation policies and procedures for the Fund, or if information furnished by a pricing service, in the opinion of the Adviser's valuation committee ("Valuation Committee"), is deemed not representative of the fair value of such security, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could obtain the fair value assigned to an investment if it sold the investment at approximately the time at which the Fund determines its NAV per share, and the actual value obtained could be materially different. The trading prices of the Fund's shares listed on its exchange may differ from the Fund's NAV and will normally be affected by market forces, such as supply and demand, economic conditions, the market value of the Fund's disclosed portfolio holdings and other factors. As a result, trading prices may be lower, higher or the same as the Fund's NAV; and investors may pay more than NAV when buying shares and receive less than NAV when selling shares through the exchange.

**Fair Valuation and Significant Events Procedures** 

Pursuant to Rule 2a-5 under the Act, the Fund's Board of Trustees (the "Trustees") has designated the Adviser as the Fund's valuation designee to perform any fair value determinations for securities and other assets held by the Fund. The Adviser is subject to the Trustees' oversight and certain reporting and other requirements intended to provide the Trustees the information needed to oversee the Adviser's fair value determinations.

The Adviser, acting through its Valuation Committee, is responsible for determining the fair value of investments for which market quotations are not readily available. The Valuation Committee is comprised of officers of the Adviser and certain of the Adviser's affiliated companies and determines fair value and oversees the calculation of the NAV. The Valuation Committee is also authorized to use pricing services to provide fair value evaluations of the current value of certain investments for purposes of calculating the NAV. The Valuation Committee employs various methods for reviewing third-party pricing-service evaluations including periodic reviews of third-party pricing services' policies, procedures and valuation methods (including key inputs, methods, models and assumptions),

Semi-Annual Financial Statements and Additional Information

**19**

------

transactional back-testing, comparisons of evaluations of different pricing services, and review of price challenges by the Adviser based on recent market activity. In the event that market quotations and price evaluations are not available for an investment, the Valuation Committee determines the fair value of the investment in accordance with procedures adopted by the Adviser. The Trustees periodically review the fair valuations made by the Valuation Committee. The Trustees have also approved the Adviser's fair valuation and significant events procedures as part of the Fund's compliance program and will review any changes made to the procedures.

Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and ask for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for any U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for any other types of fixed-income securities and any OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Adviser.

The Adviser has also adopted procedures requiring an investment to be priced at its fair value whenever the Valuation Committee determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

■

With respect to securities traded principally in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures contracts;

■

Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded;

■

Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, or a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Adviser has adopted procedures whereby the Valuation Committee uses a pricing service to provide factors to update the fair value of equity securities traded principally in foreign markets from the time of the close of their respective foreign stock exchanges to the pricing time of the Fund. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Valuation Committee will determine the fair value of the investment in accordance with the fair valuation procedures approved by the Adviser. The Trustees periodically review fair valuations made in response to significant events.

**Repurchase Agreements** 

The Fund may invest in repurchase agreements for short-term liquidity purposes. It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. Certain repurchase agreements may be structured as loans secured by a security interest or lien on the eligible securities. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

The insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

**Investment Income, Gains and Losses, Expenses and Distributions** 

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified-cost basis. Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income, if any, are declared and paid monthly. In addition, distributions of capital gains, if any, are declared and paid at least annually. Non-cash dividends included in dividend income, if any, are recorded at fair value. Amortization/accretion of premium and discount is included in investment income. The detail of the total fund expense waiver and reimbursement of $161,416 is disclosed in Note 5.

Semi-Annual Financial Statements and Additional Information

**20**

------

**Federal Taxes** 

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code of 1986 (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. As of and during the six months ended December 31, 2025, the Fund did not have a liability for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of December 31, 2025, tax years 2024 and 2025 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the State of Delaware.

**When-Issued and Delayed-Delivery Transactions** 

The Fund may engage in when-issued or delayed-delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed-delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

**Swap Contracts** 

Swap contracts involve two parties that agree to exchange the returns (or the differential in rates of return) earned or realized on particular predetermined investments, instruments, indices or other measures. The gross returns to be exchanged or "swapped" between parties are generally calculated with respect to a "notional amount" for a predetermined period of time. The Fund may enter into interest rate, total return, credit default, currency and other swap agreements. Risks may arise upon entering into swap agreements from the potential inability of the counterparties to meet the terms of their contract from unanticipated changes in the value of the swap agreement. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default.

The Fund uses credit default swaps to seek to increase return and to manage sector/asset class and market risks. The "buyer" in a credit default swap is obligated to pay the "seller" a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or the "par value," of the reference obligation in exchange for the reference obligation. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Recovery values are assumed by market makers considering either industry standard recovery rates or entity specific factors and considerations until a credit event occurs. If a credit event has occurred, the recovery value is typically determined by a facilitated auction whereby a minimum number of allowable broker bids, together with a specific valuation method, are used to calculate the settlement value. The maximum amount of the payment or loss that may occur, as a result of a credit event payable by the protection seller, is equal to the notional amount of the underlying index or security. The Fund's maximum risk of loss from counterparty credit risk, either as the protection buyer or as the protection seller, is the fair value of the contract. This risk is mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty.

Upfront payments received or paid by the Fund will be reflected as an asset or liability on the Statement of Assets and Liabilities. Changes in the value of swap contracts are included in "Swaps, at value" on the Statement of Assets and Liabilities, and periodic payments are reported as "Net realized gain (loss) on swap contracts" in the Statement of Operations.

Certain swap contracts may be centrally cleared ("centrally cleared swaps"), whereby all payments made or received by the Fund pursuant to the contract are with a central clearing party (CCP) rather than the counterparty. The CCP guarantees the performance of the parties to the contract. Upon entering into centrally cleared swaps, the Fund is required to deposit with the CCP, either in cash or securities, an amount of initial margin determined by the CCP, which is subject to adjustment. For centrally cleared swaps, the daily change in valuation is recorded as a receivable or payable for variation margin and settled in cash with the CCP daily. In the case of centrally cleared swaps, counterparty risk is minimal due to protections provided by the CCP.

Swap contracts outstanding, at period end, including net unrealized appreciation/depreciation, are listed after the Fund's Portfolio of Investments.

The average notional amount of swap buy protection and sell protection contracts held by the Fund throughout the period was $8,142,857 and $0, respectively. This is based on amounts held as of each month-end throughout the six-month period.

**Futures Contracts** 

The Fund purchases and sells financial futures contracts to seek to increase return and income and to manage duration, country, currency, market, sector/asset class and yield curve risks. Upon entering into a financial futures contract with a broker, the Fund is required to deposit with a broker, either a specified amount of cash which is shown as due from broker in the Statement of Assets and Liabilities, or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with the changes in the value of the underlying securities. There is minimal counterparty risk to the Fund since futures contracts are exchange traded and the exchange's clearinghouse, as counterparty to all exchange traded futures contracts, guarantees the futures contracts against default.

Futures contracts outstanding at period end are listed after the Fund's Portfolio of Investments.

The average notional value of long and short futures contracts held by the Fund throughout the period was $87,479,688 and $3,474,753, respectively. This is based on amounts held as of each month-end throughout the six-month period.

Semi-Annual Financial Statements and Additional Information

**21**

------

**Foreign Exchange Contracts** 

The Fund may enter into foreign exchange contracts to seek to increase return and to manage country, currency and market risks. Purchased contracts are used to acquire exposure to foreign currencies, whereas, contracts to sell are used to hedge the Fund's securities against currency fluctuations. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

Foreign exchange contracts are subject to Master Netting Agreements (MNA) which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund, through a single payment, in the event of default or termination. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross.

Foreign exchange contracts outstanding at period end, including net unrealized appreciation/depreciation, are listed after the Fund's Portfolio of Investments.

The average value at settlement date payable and receivable of foreign exchange contracts purchased and sold by the Fund throughout the period was $48,891 and $31,886, respectively. This is based on the contracts held as of each month-end throughout the six-month period.

**Foreign Currency Translation** 

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at period end, resulting from changes in the exchange rate.

**Restricted Securities** 

The Fund may purchase securities which are considered restricted. Restricted securities are securities that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) are subject to contractual restrictions on public sales. In some cases, when a security cannot be offered for public sale without first being registered, the issuer of the restricted security has agreed to register such securities for resale, at the issuer's expense, either upon demand by the Fund or in connection with another registered offering of the securities. Many such restricted securities may be resold in the secondary market in transactions exempt from registration. Restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities, like other securities, are priced in accordance with procedures established by and under the general supervision of the Adviser.

**Option Contracts** 

The Fund buys or sells put and call options to seek to increase return and income and to manage currency, duration, market, sector/asset class and yield curve risks. The seller ("writer") of an option receives a payment or premium, from the buyer, which the writer keeps regardless of whether the buyer exercises the option. When the Fund writes a put or call option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. The Fund, as a writer of an option, bears the market risk of an unfavorable change in the price of the underlying reference instrument. When the Fund purchases a put or call option, an amount equal to the premium paid is recorded as an increase to the cost of the investment and subsequently marked to market to reflect the current value of the option purchased. Premiums paid for purchasing options which expire are treated as realized losses. Premiums received/paid for writing/purchasing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying reference instrument to determine the realized gain or loss. The risk associated with purchasing put and call options is limited to the premium paid. Options can trade on securities or commodities exchanges. In this case, the exchange sets all the terms of the contract except for the price. Most exchanges require investors to maintain margin accounts through their brokers to cover their potential obligations to the exchange. This protects investors against potential defaults by the counterparty.

OTC written option contracts are subject to MNA. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross.

Purchased option contracts outstanding at period-end are listed in the Fund's Portfolio of Investments and written option contracts outstanding at period end are listed after the Fund's Portfolio of Investments.

The average market value of purchased put and call options held by the Fund throughout the period was $29,837 and $27,650, respectively. This is based on amounts held as of each month-end throughout the six-month period.

The average market value of written put and call options held by the Fund throughout the period was $134,335 and $140,763, respectively. This is based on amounts held as of each month-end throughout the six-month period.

Semi-Annual Financial Statements and Additional Information

**22**

------

**Additional Disclosure Related to Derivative Instruments** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fair Value of Derivative Instruments** | **Fair Value of Derivative Instruments** | **Fair Value of Derivative Instruments** | **Fair Value of Derivative Instruments** | **Fair Value of Derivative Instruments** |
|  | **Assets** | **Assets** | **Liabilities** | **Liabilities** |
|  | &nbsp;&nbsp; **Statement of** <br>**Assets and** <br>**Liabilities** <br>**Location**<br>| **Fair** <br>**Value**<br>| &nbsp;&nbsp; **Statement of** <br>**Assets and** <br>**Liabilities** <br>**Location**<br>| **Fair** <br>**Value**<br>|
| Derivatives not accounted for as hedging <br>instruments under ASC Topic 815<br>|  |  |  |  |
| Interest rate contracts |  | &nbsp;&nbsp; $— | &nbsp;&nbsp; Payable for variation margin <br>on futures contracts<br>| &nbsp;&nbsp; $567\* |
| Interest rate contracts | &nbsp;&nbsp; Purchased options, within <br>Investment in securities, at value<br>| &nbsp;&nbsp; 23437 |  | &nbsp;&nbsp; — |
| Interest rate contracts |  | &nbsp;&nbsp; — | &nbsp;&nbsp; Written options <br>outstanding, at value<br>| &nbsp;&nbsp; 79688 |
| Foreign exchange contracts | &nbsp;&nbsp; Unrealized appreciation on <br>foreign exchange contracts<br>| &nbsp;&nbsp; 26978 | &nbsp;&nbsp; Unrealized depreciation on <br>foreign exchange contracts<br>| &nbsp;&nbsp; 12660 |
| Foreign exchange contracts |  | &nbsp;&nbsp; — | &nbsp;&nbsp; Written options <br>outstanding, at value<br>| &nbsp;&nbsp; 117333 |
| Foreign exchange contracts | &nbsp;&nbsp; Purchased options, within <br>Investment in securities, at value<br>| &nbsp;&nbsp; 44895 |  | &nbsp;&nbsp; — |
| Credit contracts |  | &nbsp;&nbsp; — | Swaps, at value | &nbsp;&nbsp; 340218 |
| Total derivatives not accounted for as hedging instruments <br> under ASC Topic 815<br>|  | &nbsp;&nbsp; $95310 |  | &nbsp;&nbsp; $550466 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

\* Includes cumulative net depreciation of futures contracts as reported in the footnotes to the Portfolio of Investments. Only the current day's variation margin is reported within the Statement of Assets and Liabilities.

**The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended December 31, 2025** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Amount of Realized Gain or (Loss) on Derivatives Recognized in Income** | **Amount of Realized Gain or (Loss) on Derivatives Recognized in Income** | **Amount of Realized Gain or (Loss) on Derivatives Recognized in Income** | **Amount of Realized Gain or (Loss) on Derivatives Recognized in Income** | **Amount of Realized Gain or (Loss) on Derivatives Recognized in Income** | **Amount of Realized Gain or (Loss) on Derivatives Recognized in Income** | **Amount of Realized Gain or (Loss) on Derivatives Recognized in Income** |
|  | **Credit** <br>**Default** <br>**Swaps**<br>| **Futures** <br>**Contracts**<br>| **Foreign** <br>**Exchange** <br>**Contracts**<br>| **Purchased** <br>**Options** <br>**Contracts**<sup>1</sup> <br>| **Written** <br>**Options** <br>**Contracts**<br>| **Total** |
| Interest rate contracts | &nbsp;&nbsp; $— | &nbsp;&nbsp; $70282 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $(329304) | &nbsp;&nbsp; $1076488 | &nbsp;&nbsp; $817466 |
| Equity contracts | &nbsp;&nbsp; — | &nbsp;&nbsp; (152983) | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (152983) |
| Foreign exchange contracts | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (147827) | &nbsp;&nbsp; (142024) | &nbsp;&nbsp; 481772 | &nbsp;&nbsp; 191921 |
| Credit contracts | &nbsp;&nbsp; (24904) | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (24904) |
| TOTAL | &nbsp;&nbsp; $(24904) | &nbsp;&nbsp; $(82701) | &nbsp;&nbsp; $(147827) | &nbsp;&nbsp; $(471328) | &nbsp;&nbsp; $1558260 | &nbsp;&nbsp; $831500 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1 The net realized loss on Purchased Options Contracts is found within the Net realized loss on investments on the Statement of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income** | **Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income** | **Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income** | **Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income** | **Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income** | **Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income** | **Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income** |
|  | **Credit** <br>**Default** <br>**Swaps**<br>| **Futures** <br>**Contracts**<br>| **Foreign** <br>**Exchange** <br>**Contracts**<br>| **Purchased** <br>**Options** <br>**Contracts**<sup>1</sup> <br>| **Written** <br>**Options** <br>**Contracts**<br>| **Total** |
| Interest rate contracts | &nbsp;&nbsp; $— | &nbsp;&nbsp; $(184040) | &nbsp;&nbsp; $— | &nbsp;&nbsp; $5672 | &nbsp;&nbsp; $121437 | &nbsp;&nbsp; $(56931) |
| Equity contracts | &nbsp;&nbsp; — | &nbsp;&nbsp; 64907 | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 64907 |
| Foreign exchange contracts | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; 14318 | &nbsp;&nbsp; (15514) | &nbsp;&nbsp; 85489 | &nbsp;&nbsp; 84293 |
| Credit contracts | &nbsp;&nbsp; (1097) | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; — | &nbsp;&nbsp; (1097) |
| TOTAL | &nbsp;&nbsp; $(1097) | &nbsp;&nbsp; $(119133) | &nbsp;&nbsp; $14318 | &nbsp;&nbsp; $(9842) | &nbsp;&nbsp; $206926 | &nbsp;&nbsp; $91172 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

1 The net change in unrealized depreciation of Purchased Options Contracts is found within the Net change in unrealized appreciation of investments on the Statement of Operations.

Semi-Annual Financial Statements and Additional Information

**23**

------

As indicated above, certain derivative investments are transacted subject to MNA. These agreements permit the Fund to offset with a counterparty certain derivative payables and/or receivables with collateral held and create one single net payment in the event of default or termination of the agreement by either the Fund or the counterparty. Amounts presented on the Portfolio of Investments and Statement of Assets and Liabilities are not net settlement amounts but gross. As of December 31, 2025, the impact of netting assets and liabilities and the collateral pledged or received based on MNA are detailed below:

**Gross Amounts Not Offset In the Statement of Assets and Liabilities**<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Transaction** | **Gross Asset** <br>**Derivatives** <br>**Presented In** <br>**Statement of** <br>**Assets and** <br>**Liabilities**<br>| **Financial** <br>**Instrument**<br>| **Collateral** <br>**Received**<br>| **Net Amount** |
| Foreign Exchange Contracts | &nbsp;&nbsp; $26978 | &nbsp;&nbsp; $(316) | &nbsp;&nbsp; $— | &nbsp;&nbsp; $26662 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Transaction** | **Gross Liability** <br>**Derivatives** <br>**Presented In** <br>**Statement of** <br>**Assets and** <br>**Liabilities**<br>| **Financial** <br>**Instrument**<br>| **Collateral** <br>**Received**<br>| **Net Amount** |
| Foreign Exchange Contracts | &nbsp;&nbsp; $12660 | &nbsp;&nbsp; $(316) | &nbsp;&nbsp; $— | &nbsp;&nbsp; $12344 |
| Written Options Contracts | &nbsp;&nbsp; $197021 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $— | &nbsp;&nbsp; $197021 |
| Swap Contracts | &nbsp;&nbsp; $340218 | &nbsp;&nbsp; $— | &nbsp;&nbsp; $— | &nbsp;&nbsp; $340218 |
| TOTAL | &nbsp;&nbsp; $549899 | &nbsp;&nbsp; $(316) | &nbsp;&nbsp; $— | &nbsp;&nbsp; $549583 |

---

The Fund has credit related contingent features that if triggered would allow its derivative counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivative counterparties to reduce the risk that the Fund will not fulfill its payment obligation to its counterparties. This triggering feature includes, but is not limited to, a percentage decrease in the Fund's net asset and/or a percentage decrease in the Fund's NAV, which could cause the Fund to accelerate payment of any net liability owed to the counterparty. The contingent features are established within the Fund's MNA. The value of positions in a net liability position subject to credit risk contingent features is the "Net Amount" in the liability section per the preceding chart. If the feature were triggered at December 31, 2025, the Fund could be required to pay this amount in cash to its counterparties. Please see the chart above for collateral pledged against this net liability position as of December 31, 2025.

**Other** 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ materially from those estimated. The Fund applies investment company accounting and reporting guidance.

**3. SHARES OF BENEFICIAL INTEREST** 

The following table summarizes share activity with respect to purchases and redemptions of Creation Units:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** <br>**12/31/2025**<br>| **Year Ended** <br>**6/30/2025**<br>|
| Shares sold | &nbsp;&nbsp; 1440000 | &nbsp;&nbsp; 11240000 |
| Shares issued to shareholders in payment of distributions declared | &nbsp;&nbsp; — | &nbsp;&nbsp; — |
| Shares redeemed | &nbsp;&nbsp; (440004) | &nbsp;&nbsp; (2080000) |
| NET CHANGE RESULTING FROM FUND SHARE TRANSACTIONS | &nbsp;&nbsp; 999996 | &nbsp;&nbsp; 9160000 |

---

**4. FEDERAL TAX INFORMATION** 

At December 31, 2025, the cost of investments for federal tax purposes was $349,799,533. The net unrealized appreciation of investments for federal tax purposes was $6,291,388. This consists of unrealized appreciation from investments for those securities having an excess of value over cost of $6,633,058 and unrealized depreciation from investments for those securities having an excess of cost over value of $341,670. The amounts presented are inclusive of derivative contracts.

As of June 30, 2025, the Fund had a capital loss carryforward of $5,232,597 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, thereby reducing the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax. Pursuant to the Code, these net capital losses retain their character as either short-term or long-term and do not expire.

Semi-Annual Financial Statements and Additional Information

**24**

------

The following schedule summarizes the Fund's capital loss carryforwards:

---

| | | |
|:---|:---|:---|
| **Short-Term** | **Long-Term** | **Total** |
| $4740359 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $492238 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5232597 |

---

At June 30, 2025, for federal income tax purposes, the Fund had $27,784 in straddle loss deferrals.

**5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES** 

**Investment Adviser Fee** 

The advisory agreement between the Fund and the Adviser provides for an annual fee equal to 0.47% of the Fund's average daily net assets. Under the advisory agreement, the Adviser has contractually agreed to pay all operating expenses of the Fund under a unitary fee structure, except (i) interest and taxes (including, but not limited to, income, excise, transaction, transfer and withholding taxes) and registration fees and expenses; (ii) expenses of the Fund incurred with respect to the acquisition and disposition of portfolio securities and the execution of portfolio transactions, including brokerage commissions and short sale dividend or interest expense; (iii) expenses incurred in connection with any distribution plan adopted by the Trust in compliance with Rule 12b-1 under the Act, including distribution fees; (iv) Acquired Fund Fees and Expenses; (v) litigation expenses; (vi) proxy-related expenses; (vii) tax reclaim recovery expenses; and (viii) any expenses determined to be extraordinary expenses. Subject to the terms described in the Expense Limitation note, the Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund for competitive reasons such as to maintain the Fund's expense ratio, or as and when appropriate, to maintain positive or zero net yields. For the six months ended December 31, 2025, the Adviser voluntarily waived $160,223 of its fee. The Adviser has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated investment companies. For the six months ended December 31, 2025, the Adviser reimbursed $1,193.

**Administrative Fee** 

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The Adviser, not the Fund, pays FAS.

**Distribution Services Fee** 

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses of up to 0.25% of average daily net assets, annually, to compensate FSC. Subject to the terms described in the Expense Limitation note, FSC may voluntarily choose to waive any portion of its fee.

For the six months ended December 31, 2025, the Fund did not incur a distribution services fee; however, it may begin to incur this fee upon approval of the Trustees.

**Expense Limitation** 

The Adviser and certain of its affiliates (which may include FAS or FSC) have agreed to waive certain amounts of their respective fees and/or reimburse expenses. Total annual fund operating expenses (as shown in the financial highlights, excluding interest expense, taxes, litigation expenses, extraordinary expenses and proxy-related expenses, if any) paid by the Fund (after the voluntary waivers and/or reimbursements) will not exceed 0.37% (the "Fee Limit") up to but not including the later of (the "Termination Date"): (a) September 1, 2026; or (b) the date of the Fund's next effective Prospectus. While the Adviser and its applicable affiliates currently do not anticipate terminating or increasing these arrangements prior to the Termination Date, these arrangements may only be terminated or the Fee Limit increased prior to the Termination Date with the approval of the Fund's Trustees.

**Directors'/Trustees' and Miscellaneous Fees** 

Certain Officers and Trustees of the Fund are Officers and Directors or Trustees of certain of the above companies.

**6. INVESTMENT TRANSACTIONS** 

Purchases and sales of investments, excluding long-term U.S. government securities, short-term obligations and in-kind transactions, for the six months ended December 31, 2025, were as follows:

---

| | |
|:---|:---|
| Purchases | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $32410710 |
| Sales | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $27323334 |

---

Additionally, there were purchases and sales of $29,919,231 and $10,655,420, respectively, in connection with in-kind purchases and sales of the Fund's Shares of Creation Units.

**7. LINE OF CREDIT** 

The Fund participates with certain other Federated Hermes Funds, on a several basis, in an up to $500,000,000 unsecured, 364-day, committed, revolving line of credit (LOC) agreement dated June 17, 2025. The LOC was made available to temporarily finance the repurchase or redemption of shares of the Fund, failed trades, payment of dividends, settlement of trades and for other short-term, temporary or emergency general business purposes. The Fund cannot borrow under the LOC if an inter-fund loan is outstanding. The Fund's ability to borrow under the LOC also is subject to the limitations of the Act and various conditions precedent that must be

Semi-Annual Financial Statements and Additional Information

**25**

------

satisfied before the Fund can borrow. Loans under the LOC are charged interest at a fluctuating rate per annum equal to (a) the highest, on any day, of (i) the federal funds effective rate, (ii) the published secured overnight financing rate plus an assigned percentage, and (iii) 0.0%, plus (b) a margin. Any fund eligible to borrow under the LOC pays its pro rata share of a commitment fee based on the amount of the lenders' commitment that has not been utilized, quarterly in arrears and at maturity. As of December 31, 2025, the Fund had no outstanding loans. During the six months ended December 31, 2025, the Fund did not utilize the LOC.

**8. INTERFUND LENDING** 

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund, along with other funds advised by subsidiaries of Federated Hermes, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from other participating affiliated funds. As of December 31, 2025, there were no outstanding loans. During the six months ended December 31, 2025, the program was not utilized.

**9. Operating Segments** 

An operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. A management committee of the Adviser acts as the CODM. The Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the strategic asset allocation is determined based on the investment objective of the Fund and executed by the Fund's portfolio management team. The financial information in the form of the Fund's portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions) which is reviewed by the CODM to assess the Fund's performance in comparison to the Fund's benchmarks and to make resource allocation decisions for the Fund's single segment is consistent with the information presented in these financial statements. Segment assets are reflected on the accompanying Statement of Assets and Liabilities as "total assets" and significant segment expenses are listed on the accompanying Statement of Operations.

**10. INDEMNIFICATIONS** 

Under the Fund's organizational documents, its Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund (other than liabilities arising out of their willful misfeasance, bad faith, gross negligence or reckless disregard of their duties to the Fund). In addition, in the normal course of business, the Fund provides certain indemnifications under arrangements with third parties. Typically, obligations to indemnify a third party arise in the context of an arrangement entered into by the Fund under which the Fund agrees to indemnify such third party for certain liabilities arising out of actions taken pursuant to the arrangement, provided the third party's actions are not deemed to have breached an agreed-upon standard of care (such as willful misfeasance, bad faith, gross negligence or reckless disregard of their duties under the contract). The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet arisen. The Fund does not anticipate any material claims or losses pursuant to these arrangements at this time, and accordingly expects the risk of loss to be remote.

Semi-Annual Financial Statements and Additional Information

**26**

------

Evaluation and Approval of Advisory Contract–August 2023

**FEDERATED HERMES TOTAL RETURN BOND ETF (THE "FUND")**

At its meetings in August 2023 (the "August Meetings"), the Fund's Board of Trustees (the "Board"), including those Trustees who are not "interested persons" of the Fund (the "Independent Trustees"), as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), reviewed and unanimously approved for an initial two-year term a proposed investment advisory contract (the "Contract") between the Fund and Federated Investment Management Company (the "Adviser"). The Board's determination to approve the Contract reflects the exercise of its business judgment regarding whether to authorize the creation and offering of this new investment vehicle, as proposed by Federated Hermes, Inc. (together with its affiliates, "Federated Hermes"), and is based on information requested by the Board and provided by Federated Hermes, as well as Federated Hermes' recommendation to go forward with development of the Fund. The information, factors and conclusions that formed the basis for the Board's approval are summarized below.

**<u>Information Received and Review Process</u>**

At the request of the Independent Trustees, the Fund's Chief Compliance Officer (the "CCO") furnished to the Board in advance of its August Meetings an independent written evaluation of the Fund's proposed management fee (the "New Fund CCO Fee Evaluation Report"). The Board considered the New Fund CCO Fee Evaluation Report, along with other information, in evaluating the reasonableness of the Fund's proposed management fee and in determining to approve the Contract. The CCO, in preparing the New Fund CCO Fee Evaluation Report, has the authority to retain consultants, experts or staff as reasonably necessary to assist in the performance of his duties, reports directly to the Board, and can be terminated only with the approval of a majority of the Independent Trustees.

In addition to the materials that comprise and accompany the New Fund CCO Fee Evaluation Report, the Board considered the materials and presentations provided by Federated Hermes and the CCO's independent written evaluation in connection with the Board's annual approval of the continuation of the advisory and subadvisory contracts for the other funds advised by the Adviser and its affiliates (collectively, the "Federated Hermes Funds") at its May 2023 meetings. The Board also considered such additional matters as the Independent Trustees deemed reasonably necessary to evaluate the proposed Contract.

The Board's consideration of the Contract included review of materials and information covering the following matters, among others: the nature, quality and extent of the advisory and other services to be provided to the Fund by the Adviser and its affiliates; Federated Hermes' business and operations; the Adviser's investment philosophy, personnel and processes; the Fund's proposed investment objective and strategies; the Fund's anticipated fees and expenses, including the proposed management fee and the overall estimated expense structure of the Fund (both in absolute terms and relative to a group of its peer funds), with due regard for contractual or voluntary expense limitations (if any); the financial condition of Federated Hermes; the Adviser's projected profitability with respect to managing the Fund; anticipated distribution and sales activity for the Fund; and the use and allocation of brokerage commissions to be derived from trading the Fund's portfolio securities (if any). The Board also considered the likely preferences and expectations of anticipated Fund shareholders.

The Board also considered judicial decisions concerning allegedly excessive investment advisory fees charged to other registered funds in evaluating the Contract. Using these judicial decisions as a guide, the Board observed that the following factors may be relevant to an adviser's fiduciary duty with respect to its receipt of compensation from a fund: (1) the nature and quality of the services provided by the adviser to the fund and its shareholders, including the performance of the fund, its benchmark, and comparable funds; (2) the adviser's cost of providing the services and the profitability to the adviser of providing advisory services to the fund; (3) the extent to which the adviser may realize "economies of scale" as the fund grows larger and, if such economies of scale exist, whether they have been appropriately shared with the fund and its shareholders or the family of funds; (4) any "fall-out" benefits that accrue to the adviser because of its relationship with the fund, including research services received from brokers that execute fund trades and any fees paid to affiliates of the adviser for services rendered to the fund; (5) comparative fee and expense structures, including a comparison of management fees paid to the adviser with those paid by similar funds managed by the same adviser or other advisers as well as management fees charged to institutional and other advisory clients of the same adviser for what might be viewed as like services; and (6) the extent of care, conscientiousness and independence with which the fund's board members perform their duties and their expertise, including whether they are fully informed about all facts the Board deems relevant to its consideration of the adviser's services and fees. The Board noted that the Securities and Exchange Commission ("SEC") disclosure requirements regarding the basis for a fund board's approval of the fund's investment advisory contract generally align with the factors listed above. The Board was guided by these factors in its evaluation of the proposed Contract to the extent it considered them to be appropriate and relevant, as discussed further below. The Board recognized that certain of the factors listed above (relating to such matters as anticipated Fund

Semi-Annual Financial Statements and Additional Information

**27**

------

performance and any indirect benefits that may accrue to Federated Hermes as a result of the Adviser's proposed relationship with the Fund) are essentially impossible to apply before the Fund has experienced any meaningful operating history. The Board considered and weighed these factors in light of its substantial accumulated experience in governing the Federated Hermes Funds and working with Federated Hermes on matters relating to the oversight of the Federated Hermes Funds.

In determining to approve the Contract, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board's determination to approve the Contract was based on a comprehensive consideration of all information provided to the Board. The Board recognized that its evaluation process is evolutionary and that the factors considered and the emphasis placed on relevant factors may change in recognition of changing circumstances in the registered fund marketplace. The Independent Trustees were assisted throughout the evaluation process by independent legal counsel. In connection with their deliberations at the August Meetings, the Independent Trustees met separately in executive session with their independent legal counsel and without management present to review the relevant materials and consider their responsibilities under applicable laws. In addition, senior management representatives of Federated Hermes also met with the Independent Trustees and their independent legal counsel to discuss the materials and presentations furnished to the Board at the August Meetings.

**<u>Nature, Extent and Quality of Services</u>**

The Board considered the nature, extent and quality of the services to be provided to the Fund by the Adviser and the resources of Federated Hermes to be dedicated to the Fund. In this regard, the Board evaluated, among other things, the proposed terms of the Contract and the range of services to be provided to the Fund by Federated Hermes. The Board considered the Adviser's personnel, investment philosophy and process, investment research capabilities and resources, trade operations capabilities, experience and performance track record. The Board reviewed the qualifications, backgrounds and responsibilities of the portfolio management team that will be primarily responsible for the day-to-day management of the Fund and Federated Hermes' ability and experience in attracting and retaining qualified personnel to service the proposed Fund. The Board considered the Adviser's trade execution experience and capabilities. The Board also evaluated the Adviser's anticipated ability to deliver competitive investment performance for the Fund when compared to the Fund's Peer Group (as defined below), which was deemed by the Board to be a useful indicator of the Adviser's anticipated ability to execute the Fund's investment program.

In addition, the Board considered the financial resources and overall reputation of Federated Hermes and its willingness to consider and make investments in personnel, infrastructure, technology, cybersecurity, business continuity planning and operational enhancements that are designed to benefit the Federated Hermes Funds. The Board also considered its past experience with the Adviser with respect to the services it provides to other Federated Hermes Funds. The Board considered that, although the Adviser had only been advising exchange-traded funds ("ETFs") since 2021, the Adviser had extensive experience advising actively managed mutual funds, including a mutual fund with substantially similar strategies to those proposed for the Fund.

The Board considered the special attributes of the Fund as an ETF relative to a traditional mutual fund and the benefits that are expected to be realized from an investment in the Fund, rather than a traditional mutual fund. The Board also considered the resources devoted by Federated Hermes in developing and maintaining an infrastructure necessary to support the on-going operations of the Fund.

The Board considered the quality of Federated Hermes' communications with the Board and responsiveness to Board inquiries and requests made from time to time with respect to the Federated Hermes Funds. The Board also considered that Federated Hermes is responsible for providing the Federated Hermes Funds' officers.

The Board received and evaluated information regarding Federated Hermes' regulatory and compliance environment. The Board considered Federated Hermes' compliance program and compliance history and reports from the CCO about Federated Hermes' compliance with applicable laws and regulations, including responses to regulatory developments and any compliance or other issues raised by regulatory agencies. The Board also noted Federated Hermes' support of the Federated Hermes Funds' compliance control structure and the compliance-related resources that would be devoted by Federated Hermes in support of the Fund's obligations pursuant to Rule 38a-1 under the 1940 Act, including Federated Hermes' commitment to respond to rulemaking and other regulatory initiatives of the SEC. The Board considered Federated Hermes' approach to internal audits and risk management with respect to the Federated Hermes Funds and its day-to-day oversight of the Federated Hermes Funds' compliance with their investment objectives and policies as well as with applicable laws and regulations, noting that regulatory and other developments had over time led, and continue to lead, to an increase in the scope of Federated Hermes' oversight in this regard, including in connection with the implementation of new rules on derivatives risk management and fair valuation.

Semi-Annual Financial Statements and Additional Information

**28**

------

The Board also considered the implementation of Federated Hermes' business continuity plans. In addition, the Board noted Federated Hermes' commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes due to the market, regulatory and control environments in which the Fund and its service providers operate.

The Board considered Federated Hermes' efforts to provide shareholders in the Federated Hermes Funds with a comprehensive array of funds with different investment objectives, policies and strategies. The Board considered the expenses that Federated Hermes had incurred, as well as the entrepreneurial and other risks assumed by Federated Hermes, in sponsoring and providing on-going services to new funds to expand these opportunities for shareholders. The Board noted the benefits to shareholders of being part of the family of Federated Hermes Funds.

Based on these considerations, the Board concluded that it was satisfied with the nature, extent and quality of the services to be provided to the Fund by the Adviser.

**<u>Fund Investment Performance</u>**

The Board noted that the Fund is newly formed and has no prior performance history. The Board considered the investment performance of the Adviser and its portfolio management team, including, for purposes of considering the investment skill and experience of the Fund's proposed portfolio managers, the investment performance of Federated Hermes Total Return Bond Fund, which is also advised by the Adviser and uses investment strategies substantially similar to those proposed for the Fund (the "Total Return Bond Mutual Fund"). The Board also considered information comparing the Total Return Bond Mutual Fund's performance to the Fund's proposed benchmark and the Fund's Peer Group. The Board also received additional information about the broad range of the portfolio management team's investment experience and the team's investment philosophy and process.

Based on these considerations, the Board concluded that it was satisfied that the Adviser has the capability of providing satisfactory investment performance for the Fund.

**<u>Fund Expenses</u>**

The Board considered the proposed management fee and overall proposed expense structure of the Fund and the comparative fee and expense information that had been provided in connection with the August Meetings. In this regard, the Board was presented with, and considered, information regarding the proposed contractual management fee rate, proposed net management fee rate, and anticipated total expense ratio relative to (i) traditional mutual funds with an institutional share class within the category of peer funds selected by Morningstar, Inc., an independent fund ranking organization, as provided by Broadridge (the "Peer Group") and (ii) actively managed ETFs within the Peer Group. In this regard, the Board noted that the proposed contractual management fee rate of the Fund was above the median of the Peer Group, but the Board noted the proposed applicable waivers and reimbursements, and that the overall expense structure of the Fund was competitive in the context of other factors considered by the Board.

The Board noted the CCO's view that comparisons to fund peer groups may be helpful, though not conclusive, in evaluating the reasonableness of the Fund's fees. The Board considered the CCO's view, in evaluating such comparisons, that in some cases there may be differences in the funds' objectives or investment management techniques, or the costs to implement the funds, even within the same Peer Group. The Board noted information about structural, operational and other differences between ETFs and traditional mutual funds, including differences in the marketplace in which each type of product must compete. The Board also noted that most of the funds in the Fund's Peer Group do not charge a unitary fee from which operational expenses are paid.

While mindful that courts have cautioned against giving too much weight to comparative information concerning fees charged to funds by other advisers, the use of comparisons between the Fund and its Peer Group assisted the Board in its evaluation of the Fund's proposed fees and expenses. The Board focused on comparisons with other registered funds with comparable investment programs more heavily than non-registered fund products or services because such comparisons are believed to be more relevant. The Board considered that other registered funds are the products most like the Fund, in that they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle, in fact, anticipated to be chosen and maintained by the Fund's anticipated shareholders. The Board noted that the range of such other registered funds' fees and expenses, therefore, appears to be a relevant indicator of what investors have found to be reasonable in the marketplace in which the Fund will compete. The Board also considered competition in the general ETF marketplace and the impact of market pressures on the price levels for actively managed ETFs such as the Fund.

Consistent with general ETF practice, the Board noted the Fund's "unitary" fee structure, under which the Adviser would, in addition to providing investment management services, arrange for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for the Fund to operate. The Board considered that, other than the management fee, the Adviser would pay all operating expenses of the Fund, except for: (i) interest and taxes (including, but not limited to, income, excise, transaction, transfer and withholding taxes); (ii) expenses of the Fund

Semi-Annual Financial Statements and Additional Information

**29**

------

incurred with respect to the acquisition and disposition of portfolio securities and the execution of portfolio transactions, including brokerage commissions and short sale dividend or interest expense; (iii) expenses incurred in connection with any distribution plan adopted by the Trust in compliance with Rule 12b-1 under the 1940 Act, including distribution fees; (iv) acquired fund fees and expenses; (v) litigation expenses; (vi) proxy-related expenses; (vii) tax reclaim recovery expenses; and (viii) any expenses determined to be extraordinary expenses.

The Board received and considered information about the fees and expenses of the Total Return Bond Mutual Fund. The Board also reviewed information about differences between the Total Return Bond Mutual Fund and the Fund. The Board also received and considered information about the fees charged by Federated Hermes for providing advisory services to other types of clients with investment strategies similar to those proposed for the Fund, including non-registered fund clients (such as institutional separate accounts) and a third-party unaffiliated registered fund for which the Adviser or an affiliate serves as sub-adviser. The Board noted the CCO's conclusion that non-registered fund clients are inherently different products due to the following differences, among others: (i) different types of targeted investors; (ii) different applicable laws and regulations; (iii) different legal structures; (iv) different average account sizes and portfolio management techniques made necessary by different cash flows and different associated costs; (v) the time spent by portfolio managers and their teams (among other personnel across various departments, including legal, compliance and risk management) in reviewing securities pricing and fund liquidity; (vi) different administrative responsibilities; (vii) different degrees of risk associated with management; and (viii) a variety of different costs. The Board also considered information regarding the differences in the nature of the services required for Federated Hermes to manage its proprietary registered fund business versus managing a discrete pool of assets as a sub-adviser to another institution's registered fund, noting the CCO's view that Federated Hermes generally performs significant additional services and assumes substantially greater risks in managing a Federated Hermes Fund, such as the Fund, than in its role as sub-adviser to an unaffiliated third-party registered fund. The Board noted that the CCO did not consider the fees for providing advisory services to other types of clients to be determinative in judging the appropriateness of the Fund's proposed management fee.

Based on these considerations, the Board concluded that the proposed fees and anticipated total expense ratio of the Fund, in conjunction with other matters considered, are reasonable in light of the services to be provided.

**<u>Profitability</u>**

The Board received and considered profitability information furnished by Federated Hermes, as requested by the CCO, that reported projected revenues for the Fund, as detailed cost allocation reports had not yet been projected for the Fund. The Board considered the CCO's view that, while these cost allocation reports apply consistent allocation processes, the inherent difficulties in allocating costs on a fund-by-fund basis continue to cause the CCO to question the precision of the process and to conclude that such reports may be unreliable because a single change in an allocation estimate may dramatically alter the resulting estimate of cost and/or profitability of a Federated Hermes Fund and may produce unintended consequences. The Board considered that the Fund was new to Federated Hermes and noted the CCO's view that any projected cost allocation and/or profit margin does not represent the full or actual cost of operating a Federated Hermes Fund and makes only rough estimates of the cost to launch a Federated Hermes Fund. The Board also considered the CCO's view that, while the Fund is expected to grow in size, the creation and maintenance of the Fund requires a substantial initial investment.

The Board also considered that the CCO reviewed information compiled by Federated Hermes and furnished to the Board comparing its profitability information to other publicly held fund management companies, including information regarding profitability trends over time. The Board considered that the CCO noted that Federated Hermes regularly undertakes to establish new Federated Hermes Funds and maintains a number of other smaller Federated Hermes Funds that, while expected to grow to a greater size, nevertheless require substantial investment and waiver or assumption of fees and other expenses in order to deliver them to the marketplace.

The Board considered the CCO's conclusion that, based on such profitability information, Federated Hermes profit margins did not appear to be excessive. The Board also considered the CCO's view that Federated Hermes appeared financially sound, with the resources necessary to fulfill its obligations under the proposed Contract.

**<u>Economies of Scale</u>**

The Board received and considered information about the notion of possible realization of "economies of scale" as a fund grows larger, the difficulties of determining economies of scale at an individual fund level, and the extent to which potential scale benefits are shared with shareholders. The Board considered that any reduction in fixed costs associated with the management of the Fund would benefit the Adviser due to the unitary fee structure of the Fund, but that the unitary fee would protect shareholders from a rise in operating costs and/or a decline in Fund assets and is a transparent means of informing the Fund's shareholders of the fees associated with the Fund. The Board also considered that Federated Hermes has made significant and long-term investments in areas that support all of the Federated Hermes Funds, such as: portfolio management, investment research and trading operations; shareholder services; compliance;

Semi-Annual Financial Statements and Additional Information

**30**

------

business continuity; cybersecurity and information security programs; internal audit and risk management functions; and technology and use of data. The Board noted that Federated Hermes' investments in these areas are extensive and are designed to provide enhanced services to the Federated Hermes Funds and their shareholders. The Board considered that the benefits of these investments are likely to be shared with the family of Federated Hermes Funds as a whole. In addition, the Board considered that fee waivers and expense reimbursements are another means for potential economies of scale to be shared with shareholders. The Board noted the fee waiver arrangement proposed for the Fund. The Board considered that, in order for the Federated Hermes Funds to remain competitive in the marketplace, Federated Hermes has frequently waived fees and/or reimbursed expenses for the Federated Hermes Funds and has disclosed to shareholders and/or reported to the Board its intention to do so (or continue to do so) in the future.

In connection with the Board's governance of other Federated Hermes Funds, the Board regularly receives information furnished by Federated Hermes regarding adviser-paid fees (commonly referred to as "revenue sharing" payments). The Board considered that Federated Hermes and the CCO believe that this information is relevant to considering whether Federated Hermes had an incentive to either not apply breakpoints, or to apply breakpoints at higher levels, but should not be considered when evaluating the reasonableness of management fees. The Board also noted the absence of any applicable regulatory or industry guidelines on economies of scale, which is compounded by the lack of any uniform methodology or pattern with respect to structuring fund management fees with breakpoints that serve to reduce the fees as a fund attains a certain size. The Board considered that the CCO did not recommend institution of management fee breakpoints in pricing Federated Hermes' proposed investment management services to the Fund at this time. The Board noted that, as part of its future annual review of the Contract, it will review asset growth in the Fund, whether economies of scale that can be reasonably identified have been achieved, and the extent to which such economies of scale may be shared with Fund shareholders.

**<u>Other Benefits</u>**

The Board considered information regarding the compensation and other ancillary (or "fall-out") benefits that Federated Hermes derived from its relationships with the Federated Hermes Funds. In connection with the Board's governance of other Federated Hermes Funds, the Board noted that, in addition to receiving advisory fees under the Federated Hermes Funds' investment advisory contracts, Federated Hermes' affiliates also receive fees for providing other services to the Federated Hermes Funds under separate service contracts, including for serving as the Federated Hermes Funds' administrator and distributor. In this regard, the Board considered that certain of Federated Hermes' affiliates provide distribution and shareholder services to the Federated Hermes Funds, for which they may be compensated through distribution and servicing fees paid pursuant to Rule 12b-1 plans or otherwise. The Board also received and considered information detailing the benefits, if any, that Federated Hermes may derive from its receipt of research services from brokers who execute portfolio trades for the Federated Hermes Funds.

**<u>Conclusions</u>**

The Board considered: (i) the CCO's conclusion that his observations and the information accompanying the New Fund CCO Fee Evaluation Report show that the proposed management fee for the Fund is reasonable; and (ii) the CCO's recommendation that the Board approve the proposed management fee.

On the basis of the information and factors summarized above, among other information and factors deemed relevant by the Board, and the evaluation thereof, the Board, including the Independent Trustees, unanimously voted to approve the Contract. The Board based its determination to approve the Contract on the totality of the circumstances and relevant factors and with a view of past and future long-term considerations. Not all of the factors and considerations identified above were necessarily deemed to be relevant to the Fund, nor did the Board consider any one of them to be determinative.

Semi-Annual Financial Statements and Additional Information

**31**

------

Funds are not bank deposits or obligations, are not guaranteed by any bank and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in funds involves investment risk, including the possible loss of principal.

This information is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's Prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY**

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Shareholder Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the "householding" program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of "householding." Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of "householding" at any time: shareholders who purchased shares through an intermediary should contact their representative; other shareholders may call the Fund at 1-800-341-7400, Option #4.

![](fhilogok11p.jpg)

Federated Hermes Total Return Bond ETF

Federated Hermes Funds

4000 Ericsson Drive

Warrendale, PA 15086-7561

Contact us at **FederatedHermes.com/us**

or call 1-800-341-7400.

Federated Securities Corp., Distributor

CUSIP 31423L404

Q456265 (2/26)© 2026 Federated Hermes, Inc.

------

**Item 8.** **Changes in and Disagreements with Accountants for Open-End Management Investment Companies**

[Federated Hermes Total Return Bond ETF](#a_ftretf): Not Applicable.

**Item 9.** **Proxy Disclosures for Open-End Management Investment Companies.**

[Federated Hermes Total Return Bond ETF](#a_ftretf): Not Applicable.

**Item 10.** **Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.**

[Federated Hermes Total Return Bond ETF](#a_ftretf): The Fund's disclosure of remuneration items is included as part of the Financial Statements filed under Item 7 of this form.

**Item 11.** **Statement Regarding Basis for Approval of Investment Advisory Contract.**

[Federated Hermes Total Return Bond ETF](#a_ftretf): The Fund's Evaluation and Approval of Advisory Contract summary by fund appear in the Financial Statements filed under Item 7 of this form.

**Item 12.** **Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies**

Not Applicable

**Item 13.** **Portfolio Managers of Closed-End Management Investment Companies.**

Not Applicable

**Item 14.** **Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.**

Not Applicable

**Item 15.** **Submission of Matters to a Vote of Security Holders.**

No Changes to Report

**Item 16.** **Controls and Procedures.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The registrant's Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures as of a date within 90 days of this report on Form N-CSR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

**Item 17.** **Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.**

Not Applicable

**Item 18.** **Recovery of Erroneously Awarded Compensation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp; Not Applicable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; Not Applicable

**Item 19.** **Exhibits**

(a)(1) Not Applicable.

(a)(2) Not Applicable.

(a)(3) [Certifications of Principal Executive Officer and Principal Financial Officer](fhetf2284-cert302.htm).

(a)(4) Not Applicable.

(a)(5) Not Applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; [Certifications pursuant to 18 U.S.C. Section 1350](fhetf2284-cert906.htm).

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

**Registrant: <u>Federated Hermes ETF Trust</u>**

By: <u>/s/ Jeremy D. Boughton</u>

Jeremy D. Boughton, Principal Financial Officer

Date: <u>February 23, 2026</u>

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: <u>/s/ J. Christopher Donahue</u>

J. Christopher Donahue, Principal Executive Officer

Date: <u>February 23, 2026</u>

By: <u>/s/ Jeremy D. Boughton</u>

Jeremy D. Boughton, Principal Financial Officer

Date: <u>February 23, 2026</u>

## Ex-99.Cert

**N-CSR Item 19(a)(3) - Exhibits: Certifications**

I, J. Christopher Donahue, certify that:

* I have reviewed this report on Form N-CSR of Federated Hermes ETF Trust
on behalf of: Federated Hermes Total Return Bond ETF ("registrant");

* Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

* Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations, changes in
net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and
for, the periods presented in this report;

* The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940)
and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have:

* designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report
is being prepared;

* designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

* evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and

* disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial reporting; and

* The registrant's other certifying officers and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

* all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability
to record, process, summarize, and report financial information; and

* any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 23, 2026

/S/ J. Christopher Donahue

J. Christopher Donahue, President - Principal Executive Officer

**N-CSR Item 19(a)(3) - Exhibits: Certifications**

I, Jeremy D. Boughton, certify that:

* I have reviewed this report on Form N-CSR of Federated Hermes ETF Trust
on behalf of: Federated Hermes Total Return Bond ETF("registrant");

* Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

* Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects the financial condition, results of operations, changes in
net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and
for, the periods presented in this report;

* The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940)
and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant
and have:

* designed such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report
is being prepared;

* designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

* evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a
date within 90 days prior to the filing date of this report based on such evaluation; and

* disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial reporting; and

* The registrant's other certifying officers and I have disclosed to the
registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

* all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability
to record, process, summarize, and report financial information; and

* any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 23, 2026

/S/ Jeremy D. Boughton

Jeremy D. Boughton, Treasurer - Principal Financial Officer

## Exhibit 99.906

**N-CSR Item 19(b) - Exhibits: Certifications**

**SECTION 906 CERTIFICATION**

Pursuant to 18 U.S.C.§ 1350, the undersigned officers of **Federated Hermes ETF Trust** on behalf of **Federated Hermes Total Return Bond ETF**(the "Registrant"), hereby certify, to the best of our knowledge, that the Registrant's Report on Form N-CSR for the period ended December 31, 2025 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Dated: <u>February 23, 2026</u>

/s/ J. Christopher Donahue

J. Christopher Donahue

Title: President, Principal Executive Officer

Dated: <u>February 23, 2026</u>

/s/ Jeremy D. Boughton

Jeremy D. Boughton

Title: Treasurer, Principal Financial Officer

This certification is being furnished solely pursuant to 18 U.S.C.§ 1350 and is not being filed as part of the Report or as a separate disclosure document.