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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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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
Managed by Hartfordfunds, RODM has amassed assets over $1.52 billion, making it one of the larger ETFs in the World ETFs. This particular fund, 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
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 one of the cheaper products in the space.
RODM's 12-month trailing dividend yield is 3.48%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Novartis Ag Reg Common Stock Chf.5 accounts for about 0.81% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVO) and Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIA).
Performance and Risk
Year-to-date, the Hartford Multifactor Developed Markets (ex-US) ETF return is roughly 7.33% so far, and is up about 12.65% over the last 12 months (as of 09/11/2023). RODM has traded between $21.52 and $27.29 in this past 52-week period.
The ETF has a beta of 0.80 and standard deviation of 14.32% for the trailing three-year period, making it a medium risk choice in the space. With about 508 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 $57.45 billion in assets, Vanguard FTSE Developed Markets ETF has $111.85 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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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
Managed by Hartfordfunds, RODM has amassed assets over $1.52 billion, making it one of the larger ETFs in the World ETFs. This particular fund, 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
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 one of the cheaper products in the space.
RODM's 12-month trailing dividend yield is 3.48%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Novartis Ag Reg Common Stock Chf.5 accounts for about 0.81% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.2 (NOVO) and Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIA).
Performance and Risk
Year-to-date, the Hartford Multifactor Developed Markets (ex-US) ETF return is roughly 7.33% so far, and is up about 12.65% over the last 12 months (as of 09/11/2023). RODM has traded between $21.52 and $27.29 in this past 52-week period.
The ETF has a beta of 0.80 and standard deviation of 14.32% for the trailing three-year period, making it a medium risk choice in the space. With about 508 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 $57.45 billion in assets, Vanguard FTSE Developed Markets ETF has $111.85 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.