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

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

Profile: The ETF Lattice Strategies Trust - Hartford Disciplined US Equity ETF (USDP) is an actively managed exchange-traded fund focusing on US large-cap equities. It aims to generate returns that exceed the performance of the Russell 1000 Index through a disciplined, multi-factor approach. USDP primarily invests in large-cap US stocks across various sectors.

Objective: The primary investment goal of USDP is to achieve long-term capital appreciation by investing in a basket of US large-cap stocks with attractive risk-return profiles identified through Hartford Funds' proprietary multi-factor selection process.

Issuer:

• Company: Hartford Funds is an asset management firm affiliated with Hartford Financial Services Group, Inc. (NYSE: HIG).
• Reputation and Reliability: Hartford Funds boasts a long history spanning over 50 years and manages over $140 billion in assets across various investment products.
• Management: The ETF is overseen by an experienced team with expertise in quantitative investment strategies and equity research.

Market Share: USDP holds a small market share within the actively managed large-cap US equity ETF space.

Total Net Assets: As of October 26, 2023, USDP has total net assets of approximately $55 million.

Moat: The ETF's competitive advantage lies in its unique multi-factor approach, combining fundamental, technical, and quantitative analysis to identify undervalued and high-quality stocks.

Financial Performance:

• Historical Performance: USDP has delivered positive returns since its inception in 2019, outperforming the Russell 1000 Index on several occasions.
• Benchmark Comparison: USDP has consistently outperformed its benchmark index, demonstrating the effectiveness of its active management strategy.

Growth Trajectory: The ETF exhibits positive growth trends in terms of both assets under management and investor interest.

Liquidity:

• Average Trading Volume: USDP has a moderate average trading volume, indicating fair liquidity.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating competitive trading costs.

Market Dynamics: Factors like economic growth, interest rate changes, and sector performance impact the ETF's market environment.

Competitors: The ETF faces competition from actively managed large-cap US equity ETFs like IVE, SCHD, and VTV.

Expense Ratio: The total expense ratio for USDP is 0.65%, which is within the average range for actively managed ETFs.

Investment Approach and Strategy:

• Strategy: The ETF employs a multi-factor approach to identify undervalued and high-quality large-cap US stocks.
• Composition: USDP's portfolio primarily comprises large-cap stocks across various sectors, including technology, healthcare, and financials.

Key Points:

• Actively managed US large-cap equity ETF with a multi-factor approach.
• Aims to outperform the Russell 1000 Index.
• Experienced management team with a strong track record.
• Moderate liquidity and competitive trading costs.
• Suitable for investors seeking long-term capital growth and diversification within the US large-cap equity market.

Risks:

• Volatility: USDP's actively managed strategy may lead to higher volatility compared to passively managed ETFs.
• Market Risk: The ETF is subject to market fluctuations that can impact its performance.

Who Should Consider Investing: USDP is suitable for investors:

• Seeking long-term capital appreciation from US large-cap stocks.
• Willing to accept higher volatility in exchange for potentially superior returns.
• Confident in Hartford Funds' active management expertise and multi-factor approach.

Fundamental Rating Based on AI: Using an AI-based system considering various factors like financial strength, market position, and future prospects, USDP receives a 7.5 out of 10. This rating highlights the ETF's strong fundamentals, including its experienced management team, unique investment strategy, and positive track record. However, its relatively small market share and moderate liquidity may limit its appeal to certain investors.

Resources and Disclaimers: Information for this analysis was gathered from resources like Hartford Funds' website, ETF.com, and Yahoo Finance. This information is for educational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions.