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Is Hartford Multifactor Developed Markets (ex-US) ETF (RODM) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Hartford Multifactor Developed Markets (ex-US) ETF (RODM - Free Report) debuted on 02/25/2015, and offers 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.
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.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $1.13 billion, this makes it one of the average sized ETFs in the Broad Developed World ETFs. RODM is managed by Hartfordfunds. Before fees and expenses, RODM 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.29%, making it on par with most peer products in the space.
RODM's 12-month trailing dividend yield is 3.74%.
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.
Looking at individual holdings, Net Other Assets (WMIH4) accounts for about 1.46% of total assets, followed by Roche Holding Ag Genusschein Common Stock (ROG - Free Report) and Sanofi Common Stock Eur2.0 (SAN - Free Report) .
RODM's top 10 holdings account for about 10.5% of its total assets under management.
Performance and Risk
So far this year, RODM return is roughly 12.39%, and is up about 21.75% in the last one year (as of 10/14/2024). During this past 52-week period, the fund has traded between $24.40 and $30.82.
The fund has a beta of 0.81 and standard deviation of 14.12% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 351 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 $79.07 billion in assets, Vanguard FTSE Developed Markets ETF has $141.47 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.
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?
A smart beta exchange traded fund, the Hartford Multifactor Developed Markets (ex-US) ETF (RODM - Free Report) debuted on 02/25/2015, and offers 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.
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.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $1.13 billion, this makes it one of the average sized ETFs in the Broad Developed World ETFs. RODM is managed by Hartfordfunds. Before fees and expenses, RODM 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.29%, making it on par with most peer products in the space.
RODM's 12-month trailing dividend yield is 3.74%.
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.
Looking at individual holdings, Net Other Assets (WMIH4) accounts for about 1.46% of total assets, followed by Roche Holding Ag Genusschein Common Stock (ROG - Free Report) and Sanofi Common Stock Eur2.0 (SAN - Free Report) .
RODM's top 10 holdings account for about 10.5% of its total assets under management.
Performance and Risk
So far this year, RODM return is roughly 12.39%, and is up about 21.75% in the last one year (as of 10/14/2024). During this past 52-week period, the fund has traded between $24.40 and $30.82.
The fund has a beta of 0.81 and standard deviation of 14.12% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 351 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 $79.07 billion in assets, Vanguard FTSE Developed Markets ETF has $141.47 billion. VXUS has an expense ratio of 0.08% and VEA charges 0.06%.
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.