Hartford Schroders Tax-Aware Bond ETF (HTAB)

ETF Hartford Schroders Tax-Aware Bond ETF

Profile:

The Hartford Schroders Tax-Aware Bond ETF (NYSE:HTAB) is a actively managed fund that focuses on generating high income while minimizing taxable distributions. It invests in a diversified portfolio of US dollar-denominated investment-grade fixed-income securities. The ETF primarily invests in corporate bonds, with a smaller allocation to government and agency bonds.

Objective:

The primary investment goal of HTAB is to provide current income and capital appreciation, while minimizing taxable distributions.

Issuer:

• Hartford Funds: A leading provider of mutual funds and ETFs for over 60 years.
• Schroders Investment Management: A global asset management firm with over 200 years of experience.
• Reputation and Reliability: Both Hartford Funds and Schroders Investment Management have a strong reputation and track record in the market.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing.

Market Share:

HTAB holds a small market share within the taxable bond ETF category.

Total Net Assets:

$1.35 billion as of November 10, 2023.

Moat:

• Experienced Management Team: The team's expertise and track record in fixed income investing contribute to the ETF's success.
• Active Management: The active management approach allows the team to capitalize on market opportunities and minimize taxable distributions.
• Tax-Aware Investing: The focus on minimizing taxable distributions attracts investors seeking income with lower tax implications.

Financial Performance:

HTAB has outperformed its benchmark index, the Bloomberg US Aggregate Bond Index, over 1, 3, and 5-year periods.

Growth Trajectory:

The ETF has experienced steady growth in total net assets over the past few years.

Liquidity:

• Average Trading Volume: 147,854 shares
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Interest Rate Environment: Rising interest rates may pose a challenge for bond ETFs.
• Economic Growth: A strong economy can benefit fixed income investments.
• Inflation: Inflation can erode the value of fixed income investments.

Competitors:

• iShares National AMT-Free Muni Bond ETF (MUB)
• Vanguard Tax-Exempt Bond ETF (VTEB)
• SPDR Nuveen Barclays Build America Bond ETF ( BKLN )

Expense Ratio:

0.35%

Investment Approach and Strategy:

• Strategy: Actively managed to generate income and minimize taxable distributions.
• Composition: Primarily invests in corporate bonds, with a smaller allocation to government and agency bonds.

Key Points:

• Actively managed for tax-efficiency.
• Invests in investment-grade bonds.
• Strong track record of outperforming its benchmark.

Risks:

• Interest Rate Risk: Rising interest rates can decrease the value of bond investments.
• Credit Risk: The possibility that the issuer of a bond may default on its obligations.
• Market Risk: The overall market conditions can impact the value of the ETF.

Who Should Consider Investing:

• Investors seeking current income with lower tax implications.
• Investors with a long-term investment horizon.
• Investors who are comfortable with the risks associated with fixed income investments.

Evaluation of ETF Hartford Schroders Tax-Aware Bond ETF’s fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 7.5/10

The AI-based rating system considers various factors, including financial health, market position, and future prospects. Based on the analysis, HTAB receives a 7.5 out of 10, indicating a strong overall fundamental position.

Justification:

• Strong Management Team: The experienced management team contributes to the ETF's success.
• Active Management: The active management approach allows the team to capitalize on market opportunities and minimize taxable distributions.
• Track Record of Outperformance: HTAB has outperformed its benchmark index over various timeframes.
• Moderate Expense Ratio: The ETF's expense ratio is lower than many actively managed bond funds.

Resources and Disclaimers:

• ETF Hartford Schroders Tax-Aware Bond ETF website: https://www.hartfordfunds.com/individual/etfs/htab
• Morningstar: https://www.morningstar.com/etfs/arcx/htab/quote
• Lipper: https://www.lipperalpha.com/us/en/profile/etf/usdom/hartford-schroders-tax-aware-bond-etf-htab-usdom-ucits-etf

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.