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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 long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of 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 managed by Hartfordfunds. RODM has been able to amass assets over $1.48 billion, making it one of the larger ETFs in the Broad Developed World ETFs. This particular fund 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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
RODM's 12-month trailing dividend yield is 4.53%.
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, Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIN) accounts for about 0.82% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.1 (NOVOB) and Loblaw Companies Ltd Common Stock (L - Free Report) .
Its top 10 holdings account for approximately 7.3% of RODM's total assets under management.
Performance and Risk
The ETF has lost about -2.26% so far this year and is up about 6.76% in the last one year (as of 01/18/2024). In the past 52-week period, it has traded between $24.40 and $27.60.
The fund has a beta of 0.81 and standard deviation of 14.13% 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 (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 $60.87 billion in assets, Vanguard FTSE Developed Markets ETF has $118.35 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 long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of 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 managed by Hartfordfunds. RODM has been able to amass assets over $1.48 billion, making it one of the larger ETFs in the Broad Developed World ETFs. This particular fund 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.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
RODM's 12-month trailing dividend yield is 4.53%.
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, Kuehne Nagel Intl Ag Reg Common Stock Chf1.0 (KNIN) accounts for about 0.82% of the fund's total assets, followed by Novo Nordisk A/s B Common Stock Dkk.1 (NOVOB) and Loblaw Companies Ltd Common Stock (L - Free Report) .
Its top 10 holdings account for approximately 7.3% of RODM's total assets under management.
Performance and Risk
The ETF has lost about -2.26% so far this year and is up about 6.76% in the last one year (as of 01/18/2024). In the past 52-week period, it has traded between $24.40 and $27.60.
The fund has a beta of 0.81 and standard deviation of 14.13% 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 (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 $60.87 billion in assets, Vanguard FTSE Developed Markets ETF has $118.35 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.