Hartford Funds has expanded its suite of strategic beta exchange-traded funds (ETFs) with the launch of the industry’s first US-focused real estate investment trust (REIT) ETF to apply risk-first investment design with a multifactor approach.
RORE seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the Lattice Risk-Optimized Real Estate Strategy Index (Bloomberg Ticker: LROREX), which tracks the performance of publicly traded real estate investment trusts.
“The launch of RORE is a natural extension of Hartford Funds’ strategic beta ETF platform,” says Darek Wojnar, head of exchange-traded funds at Hartford Funds. “The strategy focuses exclusively on REITs and may be a compelling solution for investors interested in taking advantage of the growing opportunities in the real estate sector.”
RORE seeks to track an index which is designed to capture the income and growth potential of investing within the US REIT universe. The strategy selects equity securities of REITs exhibiting a favourable combination of factor characteristics, including quality, momentum and value. RORE is the first ETF launched by Hartford Funds since the firm acquired Lattice Strategies just over 60 days ago.
“Hartford Funds’ latest strategic beta ETF allows us to offer even broader options for building investment portfolios that reflects clients’ needs, risk tolerances and life goals,” says Vern Meyer, chief investment officer of Hartford Funds. “Our expanded capabilities cater to investors interested in a mix of high-active share mutual funds and complementary strategic beta ETFs.”