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Is Hartford Multifactor Developed Markets exUS ETF (RODM) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Hartford Multifactor Developed Markets exUS ETF (RODM - Free Report) debuted on 02/25/2015, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $1.70 billion, this makes it one of the larger ETFs in the Broad Developed World ETFs. RODM is managed by Hartfordfunds. This particular fund seeks to match the performance of the Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index before fees and expenses.
The Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index seeks to de-concentrate country, currency, and individual company risks in developed market economies (ex US).
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for RODM are 0.29%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.57%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Zim Integrated Shipping Serv Common Stock (ZIM - Free Report) accounts for about 0.90% of the fund's total assets, followed by Loblaw Companies Ltd Common Stock (L - Free Report) and Koninklijke Ahold Delhaize N Common Stock Eur.01 (AD).
RODM's top 10 holdings account for about 7.64% of its total assets under management.
Performance and Risk
The ETF has lost about -3.65% and is down about -0.17% so far this year and in the past one year (as of 04/21/2022), respectively. RODM has traded between $27.12 and $31.92 during this last 52-week period.
The ETF has a beta of 0.78 and standard deviation of 19.64% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
Hartford Multifactor Developed Markets exUS ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $51.04 billion in assets, Vanguard FTSE Developed Markets ETF has $105.35 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Hartford Multifactor Developed Markets exUS ETF (RODM) a Strong ETF Right Now?
A smart beta exchange traded fund, the Hartford Multifactor Developed Markets exUS ETF (RODM - Free Report) debuted on 02/25/2015, and offers broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $1.70 billion, this makes it one of the larger ETFs in the Broad Developed World ETFs. RODM is managed by Hartfordfunds. This particular fund seeks to match the performance of the Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index before fees and expenses.
The Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index seeks to de-concentrate country, currency, and individual company risks in developed market economies (ex US).
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for RODM are 0.29%, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 4.57%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Zim Integrated Shipping Serv Common Stock (ZIM - Free Report) accounts for about 0.90% of the fund's total assets, followed by Loblaw Companies Ltd Common Stock (L - Free Report) and Koninklijke Ahold Delhaize N Common Stock Eur.01 (AD).
RODM's top 10 holdings account for about 7.64% of its total assets under management.
Performance and Risk
The ETF has lost about -3.65% and is down about -0.17% so far this year and in the past one year (as of 04/21/2022), respectively. RODM has traded between $27.12 and $31.92 during this last 52-week period.
The ETF has a beta of 0.78 and standard deviation of 19.64% for the trailing three-year period, making it a medium risk choice in the space. With about 507 holdings, it effectively diversifies company-specific risk.
Alternatives
Hartford Multifactor Developed Markets exUS ETF is a reasonable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Total International Stock ETF (VXUS - Free Report) tracks FTSE Global All Cap ex US Index and the Vanguard FTSE Developed Markets ETF (VEA - Free Report) tracks FTSE Developed All Cap ex US Index. Vanguard Total International Stock ETF has $51.04 billion in assets, Vanguard FTSE Developed Markets ETF has $105.35 billion. VXUS has an expense ratio of 0.07% and VEA charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Developed World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.