At Hartford Funds, we believe in human-centric investing — understanding the reasons why investors do what they do. So we’re not surprised that with all the enthusiasm for exchange-traded funds (ETFs), your clients may be missing an important fact: traditional passive ETFs can come with unintended risks.
That’s why all Hartford Funds Multifactor ETFs are designed with an approach we call intentional risk allocation. A strategy that can help your clients feel smarter while working to reach their long-term life goals.
Not All Multifactor ETFs Are Created Equal
The way you allocate risk is one of the most important factors of investment success. With Hartford Funds Multifactor ETFs, we place risk and growth potential at the forefront of our index design. Our goal: Take "better" risk in pursuit of growth by allocating toward the risks we believe are more likely to generate returns.
Hartford Funds Multifactor Investment Process
An Example 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. For illustrative purposes only.
Hartford Funds Multifactor ETFs: A Full Range of Strategies to Help Address Client Goals
Take better control over risks and opportunities in your portfolio with Hartford Funds Multifactor ETFs. Each strategy seeks to take better risk within the equity asset class in pursuit of growth.
Explore our distinct lineup by rolling over the boxes below. Click on a ticker to visit the fund's detail page.
Emerging Markets
Hartford Multifactor Emerging Markets 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
Reference Benchmark
MSCI Emerging Markets Index2
Security Selection Criteria Factors
50% Value
30% Momentum
20% Quality
Developed Markets
Hartford Multifactor Developed Markets (ex-US) ETF
What It Is
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
Reference Benchmark
MSCI World ex USA Index3
Security Selection Criteria Factors
50% Value
30% Momentum
20% Quality
Global Small Cap
Hartford Multifactor Global Small Cap ETF
What It Is
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
Reference Benchmark
MSCI All Country World Small Cap Index4
Security Selection Criteria Factors
50% Value
30% Momentum
20% Quality
REITs
Hartford Multifactor REIT ETF
What It Is
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
Reference Benchmark
MSCI US REIT Index5
Security Selection Criteria Factors
50% Quality
30% Momentum
20% Value
US Equity
Hartford Multifactor US Equity ETF
What It Is
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 USA Index6
Security Selection Criteria Factors
50% Value
30% Momentum
20% Quality
Hartford Multifactor Emerging Markets ETF | ||
What It Is Designed to invest broader and deeper in emerging markets while seeking to: |
Reference Benchmark MSCI Emerging Markets Index2 |
Security Selection Criteria Factors 50% Value |
Hartford Multifactor Developed Markets (ex-US) ETF | ||
What It Is Provides exposure to the growth potential of
developed market companies while explicitly seeking to: |
Reference Benchmark MSCI World ex USA Index3 |
Security Selection Criteria Factors 50% Value |
Hartford Multifactor Global Small Cap ETF | ||
What It Is Invests in small cap companies across the US,
developed and emerging markets. Seeks to: |
Reference Benchmark MSCI All Country World Small Cap Index4 |
Security Selection Criteria Factors 50% Value |
Hartford Multifactor REIT ETF | ||
What It Is Seeks to provide the potential benefits of
investing in US REITs including: |
Reference Benchmark MSCI US REIT Index5 |
Security Selection Criteria Factors 50% Quality |
Hartford Multifactor US Equity ETF | ||
What It Is Seeks to allocate risks more efficiently and
enhance return potential within US equities. |
Reference Benchmark MSCI USA Index6 |
Security Selection Criteria Factors 50% Value |
Incorporating Into Portfolios
Hartford Funds Multifactor ETFs create a space between active and passive—by seeking to track indices that provide the outperformance potential of an active manager with the transparency, tax and cost efficiency of an ETF.
A Third Core Building Block
Insights and Resources
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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
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
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
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
1 Market cap-weighted refers to a portfolio whose components are weighted according to the total market value of their outstanding shares.
2 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.
3 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.
4 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.
5 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.
6 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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