Hartford Multifactor Emerging Markets ETF (ROAM)

Overview

The Hartford Multifactor Emerging Markets ETF aims to provide investment results that, before fees and expenses, correspond to the performance of the Russell RAFI Emerging Markets Index. It seeks to enhance returns by systematically overweighting stocks with attractive value, quality, and momentum characteristics in the emerging markets.

Reputation and Reliability

Hartford Funds is a well-established investment management firm with a long history of providing various investment products.

Management Expertise

Hartford Funds has a dedicated team of portfolio managers and analysts experienced in managing equity and factor-based investment strategies.

Goal

To track the performance of the Russell RAFI Emerging Markets Index, enhanced by a multifactor investment strategy focused on value, quality, and momentum.

Investment Approach and Strategy

Strategy: The ETF employs a multifactor investment strategy that selects and weights stocks based on value, quality, and momentum factors, as defined by the underlying index methodology.

Composition The ETF holds a diversified portfolio of stocks from emerging market countries, primarily focusing on large- and mid-cap companies. The composition changes based on the factor-driven selection process.

Market Share: The Hartford Multifactor Emerging Markets ETF holds a modest market share compared to larger, more established emerging market ETFs.

Total Net Assets (AUM): 62000000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF landscape is highly competitive, dominated by low-cost, passively managed ETFs. ROAM differentiates itself through its multifactor approach, which may appeal to investors seeking potentially higher returns than broad market exposure. However, its higher expense ratio and smaller size are disadvantages compared to its larger competitors.

Historical Performance: Data unavailable.

Benchmark Comparison: Data unavailable.

Expense Ratio: 0.43

Average Trading Volume

The ETF's average trading volume is relatively low, which may impact trade execution.

Bid-Ask Spread

The bid-ask spread can fluctuate and may be wider than more liquid ETFs, reflecting the lower trading volume.

Market Environment Factors

Emerging markets are influenced by various economic and political factors, including global growth, currency fluctuations, commodity prices, and geopolitical events. These factors can impact the performance of the ETF.

Growth Trajectory

The ETF's growth trajectory depends on the performance of emerging market equities and the effectiveness of its multifactor investment strategy. Changes in the underlying index methodology could also influence its performance and holdings.

Competitive Edge

ROAM's competitive edge lies in its multifactor approach, which seeks to outperform traditional market-cap-weighted indexes by systematically targeting stocks with value, quality, and momentum characteristics. This strategy aims to provide enhanced returns over the long term. While larger ETFs focus on broad market exposure, ROAM offers a more targeted investment approach. However, the success of the strategy depends on the continued effectiveness of the chosen factors and the ability to execute the strategy efficiently.

Volatility

Emerging market equities are generally more volatile than developed market equities. Investors should expect fluctuations in the ETF's value.

Market Risk

The ETF is subject to emerging market risk, which includes economic, political, and currency risks specific to emerging market countries. Changes in these factors can significantly impact the ETF's performance.

Ideal Investor Profile

The ETF is suitable for investors seeking exposure to emerging market equities with a potentially higher return profile through a multifactor investment strategy. Investors should have a higher risk tolerance and a long-term investment horizon.

Market Risk

This ETF is more suitable for long-term investors seeking to enhance returns through factor-based investing rather than active traders seeking short-term gains or passive index followers.

The Hartford Multifactor Emerging Markets ETF offers exposure to emerging market equities through a multifactor investment strategy focused on value, quality, and momentum. While it differentiates itself with its factor-driven approach, it faces competition from larger, low-cost emerging market ETFs. Investors should consider their risk tolerance, investment horizon, and the potential benefits of factor-based investing before investing. Its relatively low trading volume and higher expense ratio compared to competitors should be considered.

Data Sources:

• Hartford Funds Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including the potential loss of principal.