Hartford Funds has marked the three-year anniversary of three of its Multifactor ETFs – Hartford Multifactor Developed Markets (ex-US) ETF (RODM), Hartford Multifactor US Equity ETF (ROUS), and Hartford Multifactor Emerging Markets ETF (ROAM) – with a reduction in the funds’ management fees.
In total, Hartford Funds has reduced the management fees for six of its seven MultiFactor ETFs.
“Our risk-first investment approach is designed to allow advisors the ability to build more robust portfolios that are intentional about emphasising rewarded risks, while seeking to control undesirable risks,” says Ted Lucas, Head of Investment Strategies and Solutions for Hartford Funds. “We foresee a progressively challenging investment environment and believe advisors should be positioning their clients accordingly – enhancing their potential for capital growth, while aggressively managing cost and tax drag.”
Hartford Funds’ Multifactor ETFs seek to outperform traditional passive benchmarks while delivering the potential benefits of lower cost, transparency, and tax efficiency offered within an ETF wrapper. Its flagship, RODM, was awarded a Five Star Overall Rating by Morningstar (Out of 605 products in the Foreign Large Blend Category based on Risk-Adjusted Returns as of 28 February 2018).
Since inception on 25 February 2015 through to 28 February 2018, RODM ranked among the second quintile for the one-year period and top decile for the three-year period out of 746 and 661 funds, respectively. The ranking was based on RODM’s NAV return in the Morningstar Foreign Large Blend Category. Morningstar fund rankings are based on total returns of all products within their peer groups.
As a result of these fee reductions, as of 15 February 2018, the operating expense ratios for Hartford Funds’ Multifactor ETFs now rank near the lowest one-third of all ETFs within their respective categories, and among the least expensive 5 per cent when compared to institutional share classes of all actively managed mutual funds.