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Is Hartford Multifactor Developed Markets (ex-US) ETF (RODM) a Strong ETF Right Now?

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Launched on 02/25/2015, the Hartford Multifactor Developed Markets (ex-US) ETF (RODM - Free Report) is a smart beta exchange traded fund offering broad exposure to the Foreign Large Value ETF 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.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

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.

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.

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, and has been able to amass over $1.31 billion, which makes it one of the larger ETFs in the Foreign Large Value ETF. Before fees and expenses, this particular fund 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.

With one of the cheaper products in the space, this ETF has annual operating expenses of 0.29%.

It's 12-month trailing dividend yield comes in at 3.10%.

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, Nokia Corp Spon Adr Adr (NOK) accounts for about 1.36% of the fund's total assets, followed by Gsk Plc Spon Adr Adr (GSK) and Roche Holding Ag Genusschein Common Stock (ROG).

RODM's top 10 holdings account for about 10.7% of its total assets under management.

Performance and Risk

Year-to-date, the Hartford Multifactor Developed Markets (ex-US) ETF return is roughly 34.48% so far, and is up roughly 34.06% over the last 12 months (as of 12/30/2025). RODM has traded between $28.07 $37.39 in this past 52-week period.

The ETF has a beta of 0.69 and standard deviation of 11.73% for the trailing three-year period, making it a medium risk choice in the space. With about 341 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.

Vanguard International High Dividend Yield ETF (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield ETF has $14.26 billion in assets, Schwab Fundamental International Equity ETF has $19.61 billion. VYMI has an expense ratio of 0.17% and FNDF changes 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.

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