Hartford Funds has announced the launch of its first commodity-focused ETF, Hartford Schroders Commodity Strategy ETF (NYSE: HCOM), which will be sub-advised by Schroder Investment Management North America Inc. and Schroder Investment Management North America Ltd.
HCOM seeks long-term total return by investing in a range of commodity-related instruments. The actively managed Fund’s performance benchmark will be the Bloomberg Commodity Total Return Index.
“Hartford Schroders Commodity Strategy ETF allows us to offer our clients exposure to an alternative asset class that we feel is ripe for opportunity in the current market environment,” says Vernon Meyer, Chief Investment Officer at Hartford Funds.
“This product further demonstrates our commitment to providing both our existing and prospective clients diverse, long-term investing opportunities that can help them achieve their investment goals.”
HCOM will primarily invest in a range of commodity-related derivative instruments – such as futures and other commodity-linked swaps – along with cash or cash equivalents, such as certificates of deposit, treasury bills, floating-rate notes, and equities of commodity-related companies. The fund will seek exposure to a range of commodity sectors from time to time including, but not limited to, the energy, agriculture and metals sectors.
As the fund’s sub-adviser, Schroders will consider fundamental, quantitative, and technical sentiment to determine the asset allocation to various commodities. HCOM may also invest in structured notes, debt securities, convertible securities, and foreign currency. HCOM is listed on the New York Stock Exchange ARCA, Inc. The portfolio management team consists of James Luke, Malcom Melville, and Dravasp Jhabvala, three dedicated investment professionals on Schroders’ Commodities team with an average of 17 years of investment experience.