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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) was launched on 02/25/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
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.
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
The fund is sponsored by Hartfordfunds. It has amassed assets over $1.46 billion, making it one of the larger ETFs in the Broad Developed 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
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 3.55%.
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, Novo Nordisk A/s B Common Stock Dkk.2 (NOVO) accounts for about 0.97% of the fund's total assets, followed by Novartis Ag Reg Common Stock Chf.5 and Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIN).
RODM's top 10 holdings account for about 7.02% of its total assets under management.
Performance and Risk
So far this year, RODM return is roughly 5.52%, and it's up approximately 6.77% in the last one year (as of 11/14/2023). During this past 52-week period, the fund has traded between $24.40 and $27.29.
The ETF has a beta of 0.79 and standard deviation of 14.09% for the trailing three-year period, making it a medium risk choice in the space. With about 505 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 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 $57.09 billion in assets, Vanguard FTSE Developed Markets ETF has $110.04 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 (ex-US) ETF (RODM) a Strong ETF Right Now?
The Hartford Multifactor Developed Markets (ex-US) ETF (RODM - Free Report) was launched on 02/25/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Broad Developed 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
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.
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.
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
The fund is sponsored by Hartfordfunds. It has amassed assets over $1.46 billion, making it one of the larger ETFs in the Broad Developed 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
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 3.55%.
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, Novo Nordisk A/s B Common Stock Dkk.2 (NOVO) accounts for about 0.97% of the fund's total assets, followed by Novartis Ag Reg Common Stock Chf.5 and Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIN).
RODM's top 10 holdings account for about 7.02% of its total assets under management.
Performance and Risk
So far this year, RODM return is roughly 5.52%, and it's up approximately 6.77% in the last one year (as of 11/14/2023). During this past 52-week period, the fund has traded between $24.40 and $27.29.
The ETF has a beta of 0.79 and standard deviation of 14.09% for the trailing three-year period, making it a medium risk choice in the space. With about 505 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 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 $57.09 billion in assets, Vanguard FTSE Developed Markets ETF has $110.04 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.