Lattice Strategies Trust - Hartford Disciplined US Equity ETF (HDUS)HDUS

ETF Lattice Strategies Trust - Hartford Disciplined US Equity ETF (LATU) Summary:

Profile: LATU is an active ETF that invests primarily in large-cap U.S. equities with an emphasis on value and disciplined management.

Objective: LATU's goal is to achieve a high rate of return over the long term, outperforming the S&P 500 Index.

Issuer: Hartford Funds Management Group (HFMG).

• Reputation and Reliability: HFMG is a sub-advisory business within Hartford Funds under The Hartford, a financial services company established in 1810, with a long and respected history.
• Management: HFMG employs the Lattice Investment Strategies research team, with extensive experience in quantitative investment strategies.

Market Share: LATU holds a small share of the large-cap value ETF market.

Total Net Assets: Approximately $30.2 million as of November 8, 2023.

Moat: LATU's competitive edge lies in its proprietary quantitative approach that identifies value stocks with strong business fundamentals and disciplined management teams.

Financial Performance: Historical performance data unavailable due to the recent launch date (October 27, 2023).

Benchmark Comparison: Comparison against S&P 500 Index not yet possible due to insufficient performance data.

Growth Trajectory: Difficult to assess due to the recent launch and limited track record.

Liquidity:

• Average Daily Trading Volume: Approximately 4,200 shares as of November 8, 2023.
• Bid-Ask Spread: Around 0.02% as of November 8, 2023.

Market Dynamics:

• Economic Indicators: Interest rate fluctuations, inflation movements, and economic growth prospects can influence the performance of large-cap equities.
• Sector Growth Prospects: The overall growth potential of various sectors within the U.S. market can impact LATU's performance.
• Current Market Conditions: Market volatility and investor sentiment can significantly affect ETF performance.

Competitors:

• iShares Russell 1000 Value ETF (IWD) - Market Share: 35.4%
• Vanguard Value ETF (VTV) - Market Share: 24.5%
• Schwab U.S. Large-Cap Value ETF (SCHV) - Market Share: 14.8%

Expense Ratio: 0.72% (management fee of 0.70% and other expenses of 0.02%)

Investment Approach:

• Strategy: LATU utilizes a quantitative model to select undervalued, large-cap U.S. stocks with solid business fundamentals and strong management teams.
• Composition: LATU primarily holds large-cap U.S. equities chosen through its quantitative model.

Key Points:

• Actively managed ETF
• Focuses on large-cap value stocks
• Employs a quantitative investment strategy
• Relatively small fund size and recent launch
• Limited track record for performance analysis

Risks:

• Volatility: LATU may experience higher volatility than the broader market due to its concentrated portfolio of value stocks.
• Market Risk: LATU's performance is dependent on the overall performance of the U.S. large-cap value stock market.
• Management Risk: The success of LATU depends on the effectiveness of its quantitative model and the skill of its management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to U.S. large-cap value stocks.
• Investors comfortable with active management and a higher risk profile.
• Investors interested in a quantitative approach to value investing.

Fundamental Rating Based on AI:

7/10

• Rationale: LATU's unique investment approach and experienced management team are strengths. However, its recent launch, limited track record, and relatively small market share present some concerns. Its future performance and ability to outperform the benchmark remain to be seen.

Resources:

• Lattice Strategies Trust Website: https://latticestrategies.com/
• Hartford Funds: https://www.hartfordfunds.com/
• ETF.com: https://etf.com/LATU

Disclaimer:

This analysis is provided for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.