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Is Hartford Multifactor Developed Markets exUS ETF (RODM) a Strong ETF Right Now?
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Making its debut on 02/25/2015, smart beta exchange traded fund Hartford Multifactor Developed Markets exUS ETF (RODM - Free Report) provides investors 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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking 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.
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
Because the fund has amassed over $1.75 billion, this makes it one of the larger ETFs in the Broad Developed World ETFs. RODM is managed by Hartfordfunds. 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.51%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Net Other Assets accounts for about 0.92% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVOB) and Merck Kgaa Common Stock (MRK - Free Report) .
Its top 10 holdings account for approximately 7.7% of RODM's total assets under management.
Performance and Risk
So far this year, RODM has lost about -2.55%, and is up roughly 4.76% in the last one year (as of 02/15/2022). During this past 52-week period, the fund has traded between $28.36 and $31.92.
The fund has a beta of 0.78 and standard deviation of 19.24% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 495 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 $51.18 billion in assets, Vanguard FTSE Developed Markets ETF has $105.20 billion. VXUS has an expense ratio of 0.08% 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?
Making its debut on 02/25/2015, smart beta exchange traded fund Hartford Multifactor Developed Markets exUS ETF (RODM - Free Report) provides investors 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.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking 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.
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
Because the fund has amassed over $1.75 billion, this makes it one of the larger ETFs in the Broad Developed World ETFs. RODM is managed by Hartfordfunds. 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.29% for this ETF, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 4.51%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Net Other Assets accounts for about 0.92% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVOB) and Merck Kgaa Common Stock (MRK - Free Report) .
Its top 10 holdings account for approximately 7.7% of RODM's total assets under management.
Performance and Risk
So far this year, RODM has lost about -2.55%, and is up roughly 4.76% in the last one year (as of 02/15/2022). During this past 52-week period, the fund has traded between $28.36 and $31.92.
The fund has a beta of 0.78 and standard deviation of 19.24% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 495 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 $51.18 billion in assets, Vanguard FTSE Developed Markets ETF has $105.20 billion. VXUS has an expense ratio of 0.08% 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.