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Hartford Multifactor ETFs—Designed for Growth, Structured for Resilience

Navigate a changing investing environment
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The Space Between Active and Passive


Many investors diversify their portfolios with two primary building blocks: actively managed mutual funds and passively managed market-cap weighted1 exchange-traded funds (ETFs).

Even though the latter have been increasingly popular for their lower cost and tax-efficiency, there's a trade-off. Market-cap weighted ETFs generally can't exceed benchmark returns and may introduce country, currency and sector concentration risks which often go undetected. At the same time, some actively managed mutual funds with low active share2 have a difficult time delivering consistent outperformance.

This has led to a new generation of building blocks: strategic beta ETFs. These ETFs often focus on factors, such as quality, value, momentum, volatility, and/or size—factors that have been proven in decades of academic studies to contribute to enhanced return potential.

The Space Between
Roll over the highlighted strategies to learn more.

Traditional ETFs (Market Cap-Weighted ETFs)

Reflects all individual securities in the market and weight them according to their market capitalizations.

Pros: A low cost, tax-efficient way to replicate the market.

Cons: How they’re weighted may cause unbalanced risk.



Strategic Beta ETFs

Seek to deliver consistent exposure to the characteristics of an investment that may drive performance over time. Strive to improve upon market-cap exposures by focusing on factors.

Pros: Potential for enhanced returns, lower costs, improved tax-efficiency and higher transparency

Cons: May take on the same inefficiencies of the cap-weighted approach, depending on the strategy.



Active Share Mutual Funds

Professionally managed investment funds known for outperformance potential from skilled managers.

Pros: Have the ability to look different from the benchmark and exceed benchmark returns.

Cons: Can be expensive. Those that aren’t managed actively can look like the benchmark or take on unintended negative risks.



Unlike traditional open-ended mutual funds, ETF shares are bought and sold through brokerage platforms, similar to stocks. Brokerage commissions may apply. ETF prices will fluctuate throughout the day and when buying or selling an ETF, you'll pay or receive the current market price, which may be more or less than net asset value. Mutual fund investors buy and sell directly with the mutual fund and mutual fund shares are priced once a day after the markets close. Both mutual funds and ETFs are subject to risk and volatility.

 

Many Factors to Consider

Strategic beta strategies open the door to a wide range of options. These options include everything from single-factor strategies, such as focusing on dividends, to more diversified ones that incorporate several factors into a single strategy. These diversified options, such as Hartford Multifactor ETFs, may give a more well-rounded approach to being able to enhance potential returns.

 

Taking Strategic Beta Beyond Factors


The way you allocate risk is one of the most important factors of investment success. With Hartford Multifactor ETFs, we place risk and growth potential at the forefront of strategy design. Our goal: Take "better" risk in pursuit of growth by allocating toward the risks we believe are more likely to generate returns.


Hartford Multifactor Investment Process
Roll over each section to learn more.


Results of Taking "Better" Risk

It’s important to address the problems that cap-weighted indices face. That’s why we actively weigh country exposures to limit concentration risk. It’s just one of the actions we take when building the customized indices for our ETFs.  


Improved Diversification


Diversification does not eliminate the risk of loss.

 

Learn More About Our Distinct Approach »

 

Hartford Multifactor ETFs


Take better control over risks and opportunities in your portfolio with Hartford Multifactor ETFs. Each strategy seeks to take better risk within the equity asset class in pursuit of growth.

Explore our distinct lineup by scrolling through the table below. Click on ticker to visit fund detail page.


 
TICKER

ROAM

RODM

ROGS

RORE

ROUS

ETF

Hartford Multifactor Emerging Markets ETF

Hartford Multifactor Developed Markets (ex-US) ETF

Hartford Multifactor Global Small Cap ETF

Hartford Multifactor REIT ETF

Hartford Multifactor US Equity ETF

WHAT IT IS

Designed to invest broader and deeper in emerging markets while seeking to:

  • Balance risk to diversify across the emerging markets opportunity set

  • Participate in the growth potential of a diverse set of emerging economies

Provides exposure to the growth potential of developed market companies while explicitly seeking to:

  • Reduce volatility over a market cycle

  • Diversify exposure across international countries

  • Reduce concentration in dominant currencies

Invests in small cap companies across the US, developed and emerging markets. Seeks to:

  • Reduce risks common to small cap investing such as volatility, drawdown and valuation risks by taking advantage of lower correlations and valuation opportunities

Seeks to provide the potential benefits of investing in US REITs including:

  • Capital growth potential and lower correlation to equities

  • A non-traditional source of income

  • Investing deeper into the US REIT universe, in search of improved growth potential

Seeks to allocate risks more efficiently and enhance return potential within US equities.

  • Seeks to efficiently allocate capital deeper in the US large cap universe, beyond mega-caps, and toward companies with more favorable risk-reward potential

REFERENCE BENCHMARK MSCI Emerging Markets Index3 MSCI World ex USA Index4 MSCI All Country World Small Cap Index5 MSCI US REIT Index6 MSCI USA Index7
SECURITY SELECTION CRITERIA FACTORS 50% Value
30% Momentum
20% Quality
50% Value
30% Momentum
20% Quality
50% Value
30% Momentum
20% Quality
50% Quality
30% Momentum
20% Value
50% Value
30% Momentum
20% Quality
OTHER FEATURED FACTORS Size Volatility Volatility Size Size

 

Explore Performance For All ETFs »

 

Incorporating Into a Portfolio


Hartford Multifactor ETFs create a space between active and passive—the outperformance potential of an active manager with the transparency, tax and cost efficiency of an ETF.

 

A Third Core Building Block

 

Insights



How Risk-Efficient is Your Smart Beta?
Make equity risk work harder to enhance capital growth potential.
Read More »

The Allocator’s Dilemma
Read ideas for addressing the Allocator's Dilemmas.
Read More »

Risk Allocation DNA in Emerging Markets
A portfolio's risk genetics – intentional or not – are a key determinant of investment outcomes.
Read More »

Hartford Multifactor ETFs
Learn more about our multifactor ETFs that are designed for growth and structured for resilience.
Read More »
 

Resources


Hartford Multifactor ETFs were designed with the primary considerations of liquidity and ease of implementation. Use this guide to learn more about trading ETFs including tips for best execution.

 

Learn More »

 

To learn more about Multifactor ETF strategies, please contact your financial advisor or give us a call.


Pre-Sales Support

800.456.7526
Monday-Thursday: 8:00 a.m. - 6:00 p.m. ET
Friday: 8:00 a.m. - 5:00 p.m. ET

Post-Sales and Website Support

888.843.7824
Monday-Thursday: 8:00 a.m. - 7:00 p.m. ET
Friday: 8:00 a.m. - 6:00 p.m. ET

 

 

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Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Vestibulum tortor quam, feugiat vitae, ultricies eget, tempor sit amet, ante. Donec eu libero sit amet quam egestas semper. Aenean ultricies mi vitae est. Mauris placerat eleifend leo. Quisque sit amet est et sapien ullamcorper pharetra. Vestibulum erat wisi, condimentum sed, commodo vitae, ornare sit amet, wisi. Aenean fermentum, elit eget tincidunt condimentum, eros ipsum rutrum orci, sagittis tempus lacus enim ac dui. Donec non enim in turpis pulvinar facilisis. Ut felis. Praesent dapibus, neque id cursus faucibus, tortor neque egestas augue, eu vulputate magna eros eu erat. Aliquam erat volutpat. Nam dui mi, tincidunt quis, accumsan porttitor, facilisis luctus, metus

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Market cap-weighted refers to a portfolio whose components are weighted according to the total market value of their outstanding shares.

2 Active share is the percentage of a portfolio that differs from a benchmark index. This difference is called "active risk". Investors accept active risk when they believe the different market exposure will perform better over time than the market. High active share indicates a high degree of active management.

3 MSCI Emerging Markets Index: MSCI Emerging Markets Index is a free float-adjusted market capitalization-weighted index that is designed to measure equity market performance in the global emerging markets, consisting of 24 emerging market country indices.

4 MSCI World ex USA Index: MSCI AC (All Country) World ex US Index is a broad-based, unmanaged, market capitalization weighted, total return index that measures the performance of both developed and emerging stock markets, excluding the U.S.

5 MSCI All Country World Small Cap Index: The MSCI AC World Small Cap Index is a free float-adjusted market capitalization index that captures small cap representation across developed markets and emerging markets countries.

6 MSCI US REIT Index: The MSCI US REIT Index is a free float market capitalization weighted benchmark that is comprised of equity REIT securities that belong to the MSCI US Investable Market 2500 Index.

7 MSCI USA Index: The MSCI USA Index is a free float-adjusted market capitalization index that is designed to measure the performance of the large- and mid-cap segments of the US market.

 

Indices are unmanaged and are not available for direct investment.

A Word About Risk
Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. These risks are generally greater for investments in emerging markets. Small cap securities can have greater risk and volatility than large-cap securities. A concentration in real estate securities, such as REITs, may subject a fund to risks associated with the direct ownership of real estate as well as the risks related to the way real estate companies are organized and operated. Real estate is sensitive to changes in interest rates and general and local economic conditions and developments. A non-diversified fund may be more exposed to the risks associated with single issuers than a diversified fund. There is no assurance that the investment process will consistently lead to successful investing. Diversification does not eliminate the risk of experiencing investment losses. Ordinary brokerage commissions apply. RORE is new and has limited operating history.

 

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