Hartford Multifactor Emerging Markets ETF (ROAM)

Overview

The Hartford Multifactor Emerging Markets ETF (ROAM) seeks to provide investment results that correspond to the performance of the Hartford Risk-Weighted Emerging Markets Index. It invests in equities of emerging market countries using a multifactor approach, emphasizing value, momentum, and quality.

Reputation and Reliability

Hartford Funds is a well-established asset manager with a long history in the investment industry. They are known for offering a range of investment products.

Management Expertise

Hartford Funds has a team of experienced investment professionals who manage the ETF. They have a track record of managing factor-based and emerging market strategies.

Goal

The ETF seeks to provide investment results that correspond to the performance of the Hartford Risk-Weighted Emerging Markets Index.

Investment Approach and Strategy

Strategy: The ETF employs a multifactor investment strategy, focusing on value, momentum, and quality factors within the emerging markets equity space.

Composition The ETF holds a diversified portfolio of stocks from emerging market countries, selected based on the multifactor model.

Market Share: The Hartford Multifactor Emerging Markets ETF (ROAM) has a relatively small market share compared to its larger competitors in the emerging markets ETF space.

Total Net Assets (AUM): 138560980

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE)
• iShares MSCI Emerging Markets ETF (EEM)

Competitive Landscape

The emerging markets ETF space is highly competitive, dominated by large, low-cost providers like Vanguard and iShares. ROAM differentiates itself through its multifactor approach, but faces challenges in attracting assets due to its higher expense ratio and lower brand recognition compared to its competitors. ROAM's advantage lies in its potential for outperformance through factor tilts, while its disadvantage is its relatively smaller size and less established track record.

Historical Performance: Historical performance data should be sourced from financial data providers like Yahoo Finance, Google Finance, or ETF.com.

Benchmark Comparison: Benchmark comparison data should be sourced from financial data providers like Yahoo Finance, Google Finance, or ETF.com.

Expense Ratio: 0.45

Average Trading Volume

The average trading volume provides sufficient liquidity for most investors but is relatively low compared to the largest emerging markets ETFs.

Bid-Ask Spread

The bid-ask spread is generally tight, indicating reasonable trading costs, though it may widen during periods of market volatility.

Market Environment Factors

Economic growth in emerging markets, geopolitical risks, currency fluctuations, and commodity prices can all significantly impact the performance of ROAM.

Growth Trajectory

The growth trajectory of ROAM depends on its ability to attract assets by demonstrating consistent outperformance relative to its benchmark and competitors. Changes to strategy are documented in the fund's prospectus.

Competitive Edge

ROAM's competitive advantage lies in its multifactor approach, which seeks to outperform the broader emerging markets index by tilting towards value, momentum, and quality stocks. This strategy may offer superior risk-adjusted returns over the long term. The ETF's smaller size allows for greater flexibility in portfolio construction compared to larger, more passively managed funds. However, these advantages are contingent on the continued efficacy of the factor tilts and the fund's ability to execute its strategy effectively.

Volatility

Historical volatility data should be sourced from financial data providers like Yahoo Finance, Google Finance, or ETF.com.

Market Risk

The ETF is subject to emerging market risk, including political and economic instability, currency risk, and regulatory risks. These risks can lead to significant fluctuations in the ETF's value.

Ideal Investor Profile

The ideal investor for ROAM is one seeking exposure to emerging markets equities with a tilt towards value, momentum, and quality factors, and who is comfortable with the higher risks associated with emerging markets investing.

Market Risk

The ETF is best suited for long-term investors who are looking to diversify their portfolio with emerging market equities and are willing to accept a higher level of risk in exchange for the potential for higher returns.

The Hartford Multifactor Emerging Markets ETF (ROAM) offers exposure to emerging market equities through a multifactor investment strategy. It aims to outperform broad emerging markets indices by focusing on value, momentum, and quality factors. While the ETF has a higher expense ratio than some of its larger competitors, its multifactor approach may appeal to investors seeking enhanced returns. However, potential investors should carefully consider the risks associated with emerging markets and the fund's relative size and liquidity. Investors should compare the holdings of ROAM to other ETFs targeting the same sector.

Data Sources:

• Hartford Funds Website
• ETF.com
• Yahoo Finance
• Google Finance

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. Investors should consult with a financial advisor before making any investment decisions.