We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Hartford Multifactor Developed Markets (ex-US) ETF (RODM) a Strong ETF Right Now?
Read MoreHide Full Article
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 Foreign Large Value ETF 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 $1.11 billion, making it one of the larger ETFs in the Foreign Large Value ETF. RODM 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.
Annual operating expenses for RODM are 0.29%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 3.85%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Fairfax Financial Hldgs Ltd Common Stock (FFH) accounts for about 1.17% of the fund's total assets, followed by Hsbc Holdings Plc Common Stock Usd.5 (HSBA) and Imperial Brands Plc Common Stock Gbp.1 (IMB).
RODM's top 10 holdings account for about 9.78% of its total assets under management.
Performance and Risk
So far this year, RODM has gained about 6.22%, and it's up approximately 15.59% in the last one year (as of 02/18/2025). During this past 52-week period, the fund has traded between $26.89 and $30.82.
The fund has a beta of 0.81 and standard deviation of 14.05% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 338 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 Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional International Value ETF (DFIV - Free Report) tracks ---------------------------------------- and the Schwab Fundamental International Equity ETF (FNDF - Free Report) tracks Russell RAFI Developed ex US Large Co. Index (Net). Dimensional International Value ETF has $8.93 billion in assets, Schwab Fundamental International Equity ETF has $14.16 billion. DFIV has an expense ratio of 0.27% and FNDF charges 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
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 Foreign Large Value ETF 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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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 $1.11 billion, making it one of the larger ETFs in the Foreign Large Value ETF. RODM 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.
Annual operating expenses for RODM are 0.29%, which makes it one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 3.85%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Fairfax Financial Hldgs Ltd Common Stock (FFH) accounts for about 1.17% of the fund's total assets, followed by Hsbc Holdings Plc Common Stock Usd.5 (HSBA) and Imperial Brands Plc Common Stock Gbp.1 (IMB).
RODM's top 10 holdings account for about 9.78% of its total assets under management.
Performance and Risk
So far this year, RODM has gained about 6.22%, and it's up approximately 15.59% in the last one year (as of 02/18/2025). During this past 52-week period, the fund has traded between $26.89 and $30.82.
The fund has a beta of 0.81 and standard deviation of 14.05% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 338 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 Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Dimensional International Value ETF (DFIV - Free Report) tracks ---------------------------------------- and the Schwab Fundamental International Equity ETF (FNDF - Free Report) tracks Russell RAFI Developed ex US Large Co. Index (Net). Dimensional International Value ETF has $8.93 billion in assets, Schwab Fundamental International Equity ETF has $14.16 billion. DFIV has an expense ratio of 0.27% and FNDF charges 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF.
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.