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Hartford Funds Announces Changes to Four Hartford Multifactor ETFs

August 8, 2019
Wayne, PA

Hartford Multifactor Emerging Markets ETF, Hartford Multifactor Global Small Cap ETF, Hartford Multifactor Low Volatility International Equity ETF, and Hartford Multifactor US Equity ETF are changing their proprietary custom benchmark indices.


Lattice Strategies LLC, a subsidiary of Hartford Funds Management Company, LLC, a leading asset management firm, (collectively, “Hartford Funds”) has announced that it will change the proprietary custom benchmark indices for four of its Hartford Multifactor ETFs seek to track: Hartford Multifactor Emerging Markets ETF, Hartford Multifactor Global Small Cap ETF, Hartford Multifactor Low Volatility International Equity ETF, and Hartford Multifactor US Equity ETF (each, a “Fund” and, collectively, the “Funds”). Conforming changes are being made, as necessary, to each Fund’s principal investment strategy and to the principal risks for Hartford Multifactor US Equity ETF and Hartford Multifactor Global Small Cap ETF. These changes will result in name changes for Hartford Multifactor Global Small Cap ETF and Hartford Multifactor Low Volatility International Equity ETF. In addition, Hartford Funds is reducing the advisory fee rate for Hartford Multifactor Emerging Markets ETF and Hartford Multifactor Global Small Cap ETF.

In addition to the changes noted above, the methodology for the proprietary custom benchmark indices that Hartford Multifactor Global Small Cap ETF (Hartford Risk-Optimized Multifactor Global Small Cap Index (LROGSX)) and Hartford Low Volatility International Equity ETF (Hartford Multifactor Low Volatility International Equity Index (LLVINX)) seek to track each will be revised to change the schedule for rebalancing and reconstituting the index from March and September to December and June. As a result, each of the Hartford Risk-Optimized Multifactor Global Small Cap Index and Hartford Multifactor Low Volatility International Equity Index will not be rebalanced and reconstituted in September 2019.

Hartford Funds regularly reviews its product line-up to ensure that its product offerings remain responsive to market conditions and our investors’ needs. After careful review and consideration, Hartford Funds has determined that these changes are in the best interests of each Fund and its shareholders.

Effective September 11, 2019, Hartford Multifactor Emerging Markets Equity ETF will change the benchmark index it seeks to track from Hartford Risk Optimized Multifactor Emerging Markets Index to Hartford Multifactor Emerging Markets Equity Index. The Fund’s principal investment strategy will be revised to reflect the change in index. In addition, effective September 11, 2019, the Fund’s effective advisory fee rate will be reduced from 0.49% to 0.44% of the Fund’s average daily net assets. Effective January 28, 2020, the Fund’s policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in securities of issuers in emerging markets will be deleted. The Fund will retain its policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in securities of its proprietary custom benchmark index and in depositary receipts (such as American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) representing securities of that index.

Effective September 11, 2019, Hartford Multifactor US Equity ETF will change the benchmark index it seeks to track from Hartford Risk Optimized Multifactor US Equity Index to Hartford Multifactor Large Cap Index. The Fund’s principal investment strategy and principal risks, and the underlying reference index for the Fund’s proprietary custom benchmark will be revised to reflect the change in index. Effective January 28, 2020, the Fund’s policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in equity securities of issuers of U.S. companies will be deleted. The Fund will retain its policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in securities of its proprietary custom benchmark index and in depositary receipts (such as American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) representing securities of that index.

Effective November 6, 2019, the following changes will be made to Hartford Multifactor Low Volatility International Equity ETF: (1) the name of the Fund will change from Hartford Multifactor Low Volatility International Equity ETF to Hartford Multifactor Diversified International ETF; (2) the index the Fund seeks to track will change from Hartford Multifactor Low Volatility International Equity Index to Hartford Multifactor Diversified International Index; and (3) the Fund’s policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in equity securities of developed markets (excluding the U.S.) and emerging markets will be deleted. The Fund’s principal investment strategy will be revised to reflect the change in index. The Fund will retain its policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in in securities of its proprietary custom benchmark index and in depositary receipts (such as American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) representing securities of that index.

Effective November 6, 2019, the following changes will be made to Hartford Multifactor Global Small Cap ETF: (1) the name of the Fund will change from Hartford Multifactor Global Small Cap ETF to Hartford Multifactor Small Cap ETF; (2) the index the Fund seeks to track will change from Hartford Risk Optimized Multifactor Global Small Cap Index to Hartford Multifactor Small Cap Index; and (3) the Fund’s policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in securities of small capitalization companies will be deleted. The Fund’s principal investment strategy and principal risks, and the underlying reference index for the Fund’s proprietary custom benchmark will change to reflect the change in index. The Fund’s policy of investing at least 40% of its assets in securities (i) issued by issuers organized or located outside the U.S.; (ii) issuers which primarily trade in market located outside the U.S.; (iii) issuers doing a substantial amount of business outside the U.S.; or (iv) issuers that have at least 50% of their sales or assets outside the U.S. will also be deleted effective as of November 6, 2019. In addition, effective November 6, 2019, the Fund’s effective advisory fee rate will be reduced from 0.39% to 0.34% of the Fund’s average daily net assets. The Fund will retain its policy of investing, under normal market conditions, at least 80% of its net assets (plus the amount of borrowings for investment purposes) in in securities of its proprietary custom benchmark index and in depositary receipts (such as American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), and European Depositary Receipts (“EDRs”) representing securities of that index.

For questions about trading Hartford Funds ETFs, please call our ETF Capital Markets team at 415-315-6600. For advisors seeking more information on Hartford Funds and our ETFs, please call our Sales Desk at 800-456-7526 or visit www.hartfordfunds.com.

About Hartford Funds

Founded in 1996, Hartford Funds is a leading asset manager, which provides mutual funds, ETFs, and 529 college savings plans. Using its human-centric investing approach, Hartford Funds creates strategies and tools designed to address the needs and wants of investors. Leveraging partnerships with leading experts, Hartford Funds delivers insight into the latest demographic trends and investor behavior.

The firm’s line-up includes more than 55 mutual funds in a variety of styles and asset classes, as well as a variety of multifactor and active ETFs. Its mutual funds (with the exception of certain fund of funds) are sub-advised by Wellington Management or Schroder Investment Management North America Inc. The strategic beta ETFs offered by Hartford Funds are designed to help address investors’ evolving needs by leveraging a unique risk-optimized approach, which identifies risks within each asset class and then deliberately and systematically re-allocates capital toward risks more likely to enhance return potential. Excluding affiliated funds of funds, as of March 31, 2019, Hartford Funds Management Company, LLC and its wholly owned subsidiary, Lattice Strategies LLC, had approximately $117.6 billion in discretionary and non-discretionary assets under management. For more information about our investment family, visit www.hartfordfunds.com.

Media Contact:

Netanel Spero
Prosek Partners
(646) 818-9019
nspero@prosek.com


HIG-W

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in The Hartford’s Quarterly Reports on Form 10-Q, our 2018 Annual Report on Form 10-K and the other filings The Hartford makes with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.

From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at http://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at http://ir.thehartford.com.

Investing involves risk, including the possible loss of principal. 

Hartford Multifactor Emerging Markets ETF
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ● Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets. ● Investments focused in a sector, industry or group of industries may increase volatility and risk. ● The Fund is not actively managed but rather attempts to track the performance of an index. The Fund’s returns may diverge from that of the index.

Hartford Multifactor Global Small Cap ETF
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ● Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets. ● Small cap securities can have greater risk and volatility than large-cap securities. ● Investments focused in a sector, industry or group of industries may increase volatility and risk. ● The Fund is not actively managed but rather attempts to track the performance of an index. The Fund’s returns may diverge from that of the index.

Hartford Multifactor Low Volatility International Equity ETF
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ● The Fund may experience more than a minimum level of volatility as there is no guarantee that the underlying index’s strategy of seeking to lower volatility will be successful. ● Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets. ● Investments focused in a sector, industry or group of industries may increase volatility and risk. ● The Fund is not actively managed but rather attempts to track the performance of an index. The Fund’s returns may diverge from that of the index.

Hartford Multifactor Low Volatility US Equity ETF
Investing involves risk, including the possible loss of principal. Security prices fluctuate in value depending on general market and economic conditions and the prospects of individual companies. ● The Fund may experience more than a minimum level of volatility as there is no guarantee that the underlying index’s strategy of seeking to lower volatility will be successful. ● Investments focused in a sector, industry or group of industries may increase volatility and risk. ● The Fund is not actively managed but rather attempts to track the performance of an index. The Fund’s returns may diverge from that of the index.

 

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