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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 Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Hartfordfunds, and has been able to amass over $1.19 billion, which makes it one of the average sized 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
The fund has a 12-month trailing dividend yield of 4.38%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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
Year-to-date, the Hartford Multifactor Developed Markets (ex-US) ETF has added about 0.98% so far, and was up about 15.34% over the last 12 months (as of 03/19/2024). RODM has traded between $24.40 and $27.93 in this past 52-week period.
The fund has a beta of 0.80 and standard deviation of 14.02% 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 $67.06 billion in assets, Vanguard FTSE Developed Markets ETF has $128.51 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) made its debut on 02/25/2015, and is a smart beta exchange traded fund that provides broad exposure to the Broad Developed World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Hartfordfunds, and has been able to amass over $1.19 billion, which makes it one of the average sized 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.29%.
The fund has a 12-month trailing dividend yield of 4.38%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. 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
Year-to-date, the Hartford Multifactor Developed Markets (ex-US) ETF has added about 0.98% so far, and was up about 15.34% over the last 12 months (as of 03/19/2024). RODM has traded between $24.40 and $27.93 in this past 52-week period.
The fund has a beta of 0.80 and standard deviation of 14.02% 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 $67.06 billion in assets, Vanguard FTSE Developed Markets ETF has $128.51 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.