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Is Hartford Multifactor Developed Markets exUS ETF (RODM) a Strong ETF Right Now?
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Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Hartford Multifactor Developed Markets exUS ETF (RODM - Free Report) is a smart beta exchange traded fund launched on 02/25/2015.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Hartfordfunds, RODM has amassed assets over $1.23 billion, making it one of the larger ETFs in the Broad Developed World ETFs. RODM 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
It has a 12-month trailing dividend yield of 6.43%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Loblaw Companies Ltd Common Stock (L - Free Report) accounts for about 0.94% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVOB) and Mineral Resources Ltd Common Stock (MIN - Free Report) .
The top 10 holdings account for about 8.03% of total assets under management.
Performance and Risk
So far this year, RODM has lost about -23.58%, and is down about -22.88% in the last one year (as of 10/24/2022). During this past 52-week period, the fund has traded between $21.52 and $31.08.
The fund has a beta of 0.77 and standard deviation of 20.88% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
Hartford Multifactor Developed Markets exUS ETF is not a suitable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. Instead, there are other ETFs in the space which investors should 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 $43.77 billion in assets, Vanguard FTSE Developed Markets ETF has $87.30 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?
Designed to provide broad exposure to the Broad Developed World ETFs category of the market, the Hartford Multifactor Developed Markets exUS ETF (RODM - Free Report) is a smart beta exchange traded fund launched on 02/25/2015.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Hartfordfunds, RODM has amassed assets over $1.23 billion, making it one of the larger ETFs in the Broad Developed World ETFs. RODM 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
It has a 12-month trailing dividend yield of 6.43%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Loblaw Companies Ltd Common Stock (L - Free Report) accounts for about 0.94% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVOB) and Mineral Resources Ltd Common Stock (MIN - Free Report) .
The top 10 holdings account for about 8.03% of total assets under management.
Performance and Risk
So far this year, RODM has lost about -23.58%, and is down about -22.88% in the last one year (as of 10/24/2022). During this past 52-week period, the fund has traded between $21.52 and $31.08.
The fund has a beta of 0.77 and standard deviation of 20.88% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 505 holdings, it effectively diversifies company-specific risk.
Alternatives
Hartford Multifactor Developed Markets exUS ETF is not a suitable option for investors seeking to outperform the Broad Developed World ETFs segment of the market. Instead, there are other ETFs in the space which investors should 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 $43.77 billion in assets, Vanguard FTSE Developed Markets ETF has $87.30 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.