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Systematic Investment Process

Take Better Risk

While easy to understand, cap-weighted indexes may introduce unintended risks, which is why a more intentional approach to risk can potentially lead to better results.

 
Challenges With Cap-Weighted indexes   Hartford Funds Systematic ETFs
The market is information-efficient,
but rarely risk-efficient
right arrow Identify and seek to reduce exposures to unrewarded risk
Cap-weighted risks are both inefficient and unintentional right arrow Intentionally allocate towards positions the investment adviser believes can provide positively rewarded risk
Many alternative index and strategic-beta strategies may introduce new unintended risk exposures right arrow Seek to holistically manage the interaction between defensive and offensive characteristics

Hartford Funds Systematic ETFs

 
Ticker Hartford Funds
Strategy
ETF Highlights Morningstar
Medalist Rating1
Morningstar Category Expense Ratio2
HDUS Hartford Disciplined US Equity ETF Designed to provide core US large-cap equity exposure and seeks to offer an attractive dividend yield silver morningstar medalist rating
As of 5/31/24
Large Blend 0.19%
ROUS Hartford Multifactor US Equity ETF Focuses exposure to the large-cap universe by de-emphasizing mega caps silver morningstar medalist rating
As of 10/20/23
Large Value 0.19%
RODM Hartford Multifactor Developed Markets (ex-US) ETF Offers exposure to developed non-US equities beyond the largest holdings silver morningstar medalist rating
As of 8/31/23
Foreign Large Value 0.29%
ROSC Hartford Multifactor Small Cap ETF Invests in smaller developing companies earlier in their growth curve silver morningstar medalist rating
As of 5/31/24
Small Value 0.34%
ROAM Hartford Multifactor Emerging Markets ETF Seeks to provide broad exposure to emerging economies silver morningstar medalist rating
As of 5/31/24
Diversified Emerging Markets 0.44%
RODE Hartford Multifactor Diversified International ETF Offers exposure to developed non-US and emerging market equities beyond the largest holdings neutral morningstar medalist rating
As of 5/31/24
Foreign Large Value 0.29%
ROIS Hartford Multifactor International Small Company ETF Designed to provide efficient exposure to the developed (ex-US) and emerging small-cap equity market --- Foreign SMID Blend 0.49%
VMAX Hartford US Value ETF Designed to provide efficient exposure to the US large-cap value equity market --- Large Value 0.29%
HQGO Hartford US Quality Growth ETF Designed to provide efficient quality-biased exposure to the US large-cap growth equity market --- Large Growth 0.34%

Factor Report

What’s Driving Factor Performance?

Updated quarterly, the Factor Report reviews drivers of return across the domestic, developed and emerging equity markets.


Video Resources

On Systematic ETF Investing

Brian Kraus, Senior Vice President of Systematic ETFs for Hartford Funds, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss Hartford’s systematic approach to ETFs.

Growth - But With Rational Exuberance

HQGO is growth-oriented systematic US large-cap ETF that is designed to provide efficient exposure to quality growth at reasonable valuations.

The Space Between

You’ve heard of active management. You’ve heard of passive management. But do you know about investment strategies that exist in “the space between”? Watch this video to find out more.

Implementing Strategic Beta

Come along to the planetarium with us to see the three primary roles strategic beta ETFs can play in a portfolio.

The Importance of Risk

Learn about the importance of the intentional allocation of risk in strategic beta ETFs.

Factor Blending & Conflict

As one looks to invest, it’s critical that they choose a strategy that incorporates factors in a thoughtful way that allows them to blend well and not conflict.


Insights

How to use dividend-paying stocks as a core holding without significantly lagging the market.
Considering investing in equities across the pond? Here’s what you should know before jumping in.
US and international equities have traded periods of outperformance.
Though top stocks have been dominating headlines, the current market outlook could benefit dividend stocks.
The story of concentrated markets has historically had a very unhappy ending.
Each style has had its ups and downs over the years, so investing in both styles could be prudent.
Concentration works in an investor’s favor when the top-performing stocks perform well, but history suggests this strong performance likely won’t last.
  • Investment Philosophy

    Take Better Risk

    While easy to understand, cap-weighted indexes may introduce unintended risks, which is why a more intentional approach to risk can potentially lead to better results.

     
    Challenges With Cap-Weighted indexes   Hartford Funds Systematic ETFs
    The market is information-efficient,
    but rarely risk-efficient
    right arrow Identify and seek to reduce exposures to unrewarded risk
    Cap-weighted risks are both inefficient and unintentional right arrow Intentionally allocate towards positions the investment adviser believes can provide positively rewarded risk
    Many alternative index and strategic-beta strategies may introduce new unintended risk exposures right arrow Seek to holistically manage the interaction between defensive and offensive characteristics
  • Systematic ETFs

    Hartford Funds Systematic ETFs

     
    Ticker Hartford Funds
    Strategy
    ETF Highlights Morningstar
    Medalist Rating1
    Morningstar Category Expense Ratio2
    HDUS Hartford Disciplined US Equity ETF Designed to provide core US large-cap equity exposure and seeks to offer an attractive dividend yield silver morningstar medalist rating
    As of 5/31/24
    Large Blend 0.19%
    ROUS Hartford Multifactor US Equity ETF Focuses exposure to the large-cap universe by de-emphasizing mega caps silver morningstar medalist rating
    As of 10/20/23
    Large Value 0.19%
    RODM Hartford Multifactor Developed Markets (ex-US) ETF Offers exposure to developed non-US equities beyond the largest holdings silver morningstar medalist rating
    As of 8/31/23
    Foreign Large Value 0.29%
    ROSC Hartford Multifactor Small Cap ETF Invests in smaller developing companies earlier in their growth curve silver morningstar medalist rating
    As of 5/31/24
    Small Value 0.34%
    ROAM Hartford Multifactor Emerging Markets ETF Seeks to provide broad exposure to emerging economies silver morningstar medalist rating
    As of 5/31/24
    Diversified Emerging Markets 0.44%
    RODE Hartford Multifactor Diversified International ETF Offers exposure to developed non-US and emerging market equities beyond the largest holdings neutral morningstar medalist rating
    As of 5/31/24
    Foreign Large Value 0.29%
    ROIS Hartford Multifactor International Small Company ETF Designed to provide efficient exposure to the developed (ex-US) and emerging small-cap equity market --- Foreign SMID Blend 0.49%
    VMAX Hartford US Value ETF Designed to provide efficient exposure to the US large-cap value equity market --- Large Value 0.29%
    HQGO Hartford US Quality Growth ETF Designed to provide efficient quality-biased exposure to the US large-cap growth equity market --- Large Growth 0.34%

  • Factor Report

    Factor Report

    What’s Driving Factor Performance?

    Updated quarterly, the Factor Report reviews drivers of return across the domestic, developed and emerging equity markets.


  • Video Resources

    Video Resources

    On Systematic ETF Investing

    Brian Kraus, Senior Vice President of Systematic ETFs for Hartford Funds, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss Hartford’s systematic approach to ETFs.

    Growth - But With Rational Exuberance

    HQGO is growth-oriented systematic US large-cap ETF that is designed to provide efficient exposure to quality growth at reasonable valuations.

    The Space Between

    You’ve heard of active management. You’ve heard of passive management. But do you know about investment strategies that exist in “the space between”? Watch this video to find out more.

    Implementing Strategic Beta

    Come along to the planetarium with us to see the three primary roles strategic beta ETFs can play in a portfolio.

    The Importance of Risk

    Learn about the importance of the intentional allocation of risk in strategic beta ETFs.

    Factor Blending & Conflict

    As one looks to invest, it’s critical that they choose a strategy that incorporates factors in a thoughtful way that allows them to blend well and not conflict.


  • Insights

    Insights

    How to use dividend-paying stocks as a core holding without significantly lagging the market.
    Considering investing in equities across the pond? Here’s what you should know before jumping in.
    US and international equities have traded periods of outperformance.
    Though top stocks have been dominating headlines, the current market outlook could benefit dividend stocks.
    The story of concentrated markets has historically had a very unhappy ending.
    Each style has had its ups and downs over the years, so investing in both styles could be prudent.
    Concentration works in an investor’s favor when the top-performing stocks perform well, but history suggests this strong performance likely won’t last.

1HDUS: Analyst-Driven: 20%. Data Coverage: 88%. ROUS: Analyst-Driven: 100%. Data Coverage: 100%. RODM: Analyst-Driven: 100%. Data Coverage: 100%. ROSC: Analyst-Driven: 20%. Data Coverage: 89%. ROAM: Analyst-Driven: 20%. Data Coverage: 98%. RODE: Analyst-Driven: 20%. Data Coverage: 98%. The Morningstar Medalist RatingTM is the summary expression of Morningstar’s forward-looking analysis using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which funds Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Funds are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for the Medalist Rating they’re assigned. Pillar ratings (Low, Below Average, Average, Above Average, and High) may be evaluated via an analyst’s qualitative assessment (Analyst-Driven %) or using algorithmic techniques (Data Coverage %). Funds are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a fund, the rating is monitored and reevaluated at least every 14 months. When a fund is covered either indirectly by analysts or by algorithm, the rating is assigned monthly. For more detailed information, including their methodology, please go to global.morningstar.com/managerdisclosures/.

Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. They (i) should not be used as the sole basis in evaluating a fund, (ii) involve unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell a fund. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate. ©2024 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.

2 Expenses are the total annual fund operating expenses as shown in the most recent prospectus.

Fund Objectives: HDUS seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of exchange traded U.S. large-cap equity securities. ROUS seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of exchange traded US equity securities. RODM seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of companies located in major developed markets of Europe, Canada and the Pacific Region. ROSC seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of small capitalization exchange traded equity securities. ROAM seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index based upon the emerging markets of the world. RODE seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of companies located in both developed and emerging markets. ROIS seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of small capitalization exchange traded equity securities located in both developed and emerging markets. VMAX seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of exchange traded US large-cap equity securities and is designed to consist of US equities with favorable value characteristics and relatively lower market valuations. HQGO seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of exchange traded US large cap equity securities and is designed to consist of US equities with favorable growth characteristics while maintaining what is considered to be enhanced exposure to quality while also providing reasonable exposure to value and momentum.

Important Risks: Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund's shares may fluctuate due to changes in the market value of the Fund's holdings which may in-turn fluctuate due to market and economic conditions. The market prices of the Fund's shares will generally fluctuate due to changes in the relative supply of and demand for the shares on an exchange. • 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, economic and regulatory developments. These risks may be greater, and include additional risks, for investments in emerging markets or if a Fund focuses in a particular geographic region or country.• Small cap securities can have greater risk and volatility than large-cap securities. • For dividend-paying stocks, dividends are not guaranteed and may decrease without notice. • The Funds are not actively managed but rather attempt to track the performance of an index. The Funds’ returns may diverge from that of the index. Ordinary brokerage commissions apply.

 

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The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, or ETF summary prospectus and/or prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA|SIPC. ETFs are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc (SIMNA). Schroder Investment Management North America Ltd. (SIMNA Ltd) serves as a secondary sub-adviser to certain funds. HFMC, Lattice, Wellington Management, SIMNA, and SIMNA Ltd. are all SEC registered investment advisers. Hartford Funds refers to HFD, Lattice, and HFMC, which are not affiliated with any sub-adviser or ALPS. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

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