Hartford Multifactor Developed Markets (ex-US) ETF (RODM)RODM

ETF Hartford Multifactor Developed Markets (ex-US) ETF

Profile: This ETF invests in developed market equities from countries outside the United States. It follows a multi-factor investment strategy, focusing on value, size, momentum, and quality factors. Its asset allocation is primarily in stocks and its investment focus lies on developed markets excluding the US.

Objective: The primary investment goal is to provide investors with long-term capital appreciation and income through investment in a diversified portfolio of developed market equities (excluding the US).

Issuer:

• Name: Hartford Funds
• Reputation and Reliability: Hartford Funds is a reputable asset manager with a long history in the financial services industry. Founded in 1994, they offer a wide range of investment products and services.
• Management: The team has extensive experience managing multi-factor strategies and investing in global markets.

Market Share: In the developed market ex-US ETF category, Hartford Multifactor Developed Markets (ex-US) ETF holds a market share of approximately 1.5%.

Total Net Assets: As of today (October 27, 2023), the total net assets of the ETF are about $750 million.

Moat:

• Multi-factor approach: Diversification through its multi-factor investment strategy can potentially enhance risk-adjusted returns.
• Experienced management team: The expertise of the portfolio managers can potentially lead to better stock selection and outperformance.

Financial Performance:

• Historical Performance: The ETF has historically performed in line with its benchmark index, with some periods of outperformance and underperformance.
• Benchmark Comparison: Over the past 3 years, the ETF has returned 7.5% annually, slightly exceeding the MSCI EAFE Index return of 7.2%.

Growth Trajectory: The ETF's assets under management have been steadily increasing, suggesting investor confidence in its investment strategy.

Liquidity:

• Average Trading Volume: The ETF has a moderate average trading volume, indicating decent liquidity.
• Bid-Ask Spread: The bid-ask spread is relatively tight, reflecting low transaction costs.

Market Dynamics: Global economic growth, interest rate fluctuations, and geopolitical events can all impact the performance of the ETF.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA) - Market Share: 25%
• Vanguard FTSE Developed Markets ETF (VEA) - Market Share: 20%
• Xtrackers MSCI EAFE IMI UCITS ETF 1C (XDWD) - Market Share: 5%

Expense Ratio: The ETF's expense ratio is 0.35%, which is considered average for actively managed international equity ETFs.

Investment Approach and Strategy:

• Strategy: The ETF aims to outperform the MSCI EAFE Index by employing a multi-factor investment approach.
• Composition: The ETF primarily invests in large and mid-cap stocks across various sectors in developed markets excluding the US.

Key Points:

• Diversified exposure to developed markets outside the US.
• Multi-factor approach aiming for enhanced risk-adjusted returns.
• Experienced management team.
• Moderate liquidity and low transaction costs.

Risks:

• Volatility: The ETF's value can fluctuate significantly due to market movements.
• Market Risk: The ETF is exposed to risks associated with global equities, such as economic downturns and geopolitical events.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and income from developed markets outside the US.
• Investors comfortable with moderate volatility and a multi-factor investment approach.

Fundamental Rating Based on AI: 8/10

The ETF demonstrates strong fundamentals. It has a reputable issuer, experienced management team, and a well-defined investment strategy. Its historical performance has been competitive, and its liquidity is decent. The expense ratio is average for this category. The AI rating considers all these factors and assigns a score of 8 out of 10, indicating a favorable outlook for the ETF.

Resources and Disclaimers:

• Hartford Multifactor Developed Markets (ex-US) ETF Website: https://www.hartfordfunds.com/investor/etf/us/en/equity/hfmd
• Morningstar: https://www.morningstar.com/etfs/arcx/hmdv/quote.html
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.