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Is Hartford Multifactor Developed Markets (ex-US) ETF (RODM) a Strong ETF Right Now?
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The Hartford Multifactor Developed Markets (ex-US) ETF (RODM - Free Report) made its debut on 02/25/2015, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Hartfordfunds. It has amassed assets over $1.48 billion, making it one of the larger ETFs in the World ETFs. RODM, before fees and expenses, seeks to match the performance of the Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index.
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.
Operating expenses on an annual basis are 0.29% for RODM, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 3.43%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIA) accounts for about 0.78% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVOB) and Swisscom Ag Reg Common Stock Chf1.0 (SWJ).
RODM's top 10 holdings account for about 7.33% of its total assets under management.
Performance and Risk
So far this year, RODM return is roughly 8.86%, and it's up approximately 9.38% in the last one year (as of 07/03/2023). During this past 52-week period, the fund has traded between $21.52 and $27.29.
RODM has a beta of 0.79 and standard deviation of 14.45% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
Hartford Multifactor Developed Markets (ex-US) ETF is a reasonable option for investors seeking to outperform the 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 $56.51 billion in assets, Vanguard FTSE Developed Markets ETF has $112.58 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 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 (ex-US) ETF (RODM) a Strong ETF Right Now?
The Hartford Multifactor Developed Markets (ex-US) ETF (RODM - Free Report) made its debut on 02/25/2015, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Hartfordfunds. It has amassed assets over $1.48 billion, making it one of the larger ETFs in the World ETFs. RODM, before fees and expenses, seeks to match the performance of the Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index.
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.
Operating expenses on an annual basis are 0.29% for RODM, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 3.43%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Taking into account individual holdings, Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIA) accounts for about 0.78% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVOB) and Swisscom Ag Reg Common Stock Chf1.0 (SWJ).
RODM's top 10 holdings account for about 7.33% of its total assets under management.
Performance and Risk
So far this year, RODM return is roughly 8.86%, and it's up approximately 9.38% in the last one year (as of 07/03/2023). During this past 52-week period, the fund has traded between $21.52 and $27.29.
RODM has a beta of 0.79 and standard deviation of 14.45% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
Hartford Multifactor Developed Markets (ex-US) ETF is a reasonable option for investors seeking to outperform the 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 $56.51 billion in assets, Vanguard FTSE Developed Markets ETF has $112.58 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 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.