Strong Performance and Lower Volatility
RODM has outperformed 98% of its peers (including both ETFs and mutual funds) since March 1, 2015.* RODM’s systematic, rules-based approach seeks to target up to 15% reduced volatility over a complete market cycle at an expense ratio of 0.29%.
*RODM’s ranking was based on its NAV return in the Morningstar Foreign Large Blend Category from 3/1/15 (start of first full month since inception) through 12/31/18 (10 out of 628 products). Morningstar fund rankings are based on total returns of all products within their peer groups. Index rankings are shown for illustrative purposes only and reflect what they would have been if they were included in the category. MSCI EAFE Index and MSCI World ex USA Index are both commonly used benchmarks for international developed markets.
Source: Morningstar, Bloomberg, Hartford Funds, as of 12/31/18. Past performance is no guarantee of future results.
Positive Combination of Value, Momentum and Quality
RODM’s index seeks companies with investment characteristics that drive return. Through a focus on 50% Value, 30% Momentum, and 20% Quality, RODM has better exposure than cap-weighted indices to high-quality companies, trading at attractive prices, that are being recognized by the market.
Source: Bloomberg and Hartford Funds, as of 12/31/18. Combined Factor Score reflects the degree to which each stock exhibits a favorable combination of value, momentum, and quality factors based on a mix of 50% value, 30% momentum, and 20% quality.
Better Performance in Down Markets
In the four down markets for international equities since the Fund’s inception, RODM significantly outperformed the MSCI EAFE Index and the MSCI World ex USA Index.
RODM Outperformance vs. MSCI EAFE Index
During Down Markets (%)
Source: Bloomberg and Ned Davis, as of 12/31/18. Down market timeframes defined as negative 7% or greater performance for the MSCI EAFE (2/25/15-12/31/18).
RODM seeks to provide investment results that, before fees and expenses, correspond to the total return performance of Hartford Multifactor Risk- Optimized Developed Markets (ex-US) Index, which tracks the performance of companies located in major developed markets of Europe, Canada, and the Pacific Region.
Investing involves risk, including the possible loss of principal. There is no guarantee a fund will achieve its stated objective. 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. • Diversification does not eliminate the risk of experiencing investment losses. • Due to its investment strategy, the fund may make higher capital gain distributions than other ETFs.
Hartford Multifactor ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total returns are calculated using the daily 4:00 p.m. Eastern Time net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns an investor would receive if they traded shares at other times. Investors may aquire ETF Shares and tender them for redemption through the Fund in Creation Unit Aggregations only. Please see the prospectus for more details. Brokerage commissions apply and will reduce returns.
The MSCI World ex USA Index captures large and mid cap representation across developed market countries, excluding the U.S. The MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted capitalization index that is designed to measure developed market equity performance, and excludes the US and Canada. MSCI performance is shown net of dividend withholding tax. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties or originality, accuracy, completeness, timeliness, noninfringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)
Morningstar Ratings: Foreign Large Blend category (as of 12/31/18): Overall 5 stars out of 639 products and 3-year 5 stars out of 639 products for the period ended herein. The Morningstar RatingTM for funds, or “star rating”, is calculated for funds and separate accounts with at least a 3-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. Star rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance (without adjusting for any sales load, if applicable), placing more emphasis on downward variations and rewarding consistent performance. 5 stars are assigned to the top 10%, 4 stars to the next 22.5%, 3 stars to the next 35%, 2 stars to the next 22.5%, and 1 star to the bottom 10%. Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. For more information about the Morningstar Rating for funds, including their methodology, please go to global.morningstar.com/managerdisclosures. © 2018 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/ or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
|Average Annual Total Return|
|As of 12/31/18||YTD||1 Year||3 Year||SI*|
Hartford Multifactor Developed Markets (ex-US) ETF
|Hartford Multifactor Risk-Optimized Developed Markets (ex-US) Index (LRODMX)||-9.67||-9.67||5.65||3.64|
|MSCI World ex USA Index||-14.09||-14.09||3.11||---|
|MSCI EAFE Index||-13.79||-13.79||2.87||---|
Fund Inception: 2/25/15.
LRODMX inception: 12/31/13
*SI= Since Inception. Index "inception" return is based on the Fund's inception date.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. The investment return and principal value of the investment will fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more current performance information to the most recent month-ended, click here.
2Expenses are the total annual fund operating expenses as shown in the most recent prospectus.