Choosing the Right Factor in Smart Beta REIT ETFs

RORE is the first of potentially many more smart-beta ETFs after Hartford Funds acquired Lattice. Hartford Funds first announced its acquisition of Lattice in May, but the deal was not finalized until the third quarter. Hartford’s purchase of Lattice “builds on Hartford Funds’ active management platform and creates nimble in-house investment and product development capabilities for future ETF strategies.”

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RORE joins the Lattice suite of ETFs, which includes four other smart-beta strategies: the Lattice Emerging Market Strategy ETF (NYSEArca: ROAM), Lattice Developed Markets (ex-US) Strategy ETF (NYSEArca: RODM), Lattice US Equity Strategy ETF (NYSEArca: ROUS) and Lattice Global Small Cap Strategy ETF (NYSEArca: ROGS). Like RORE, the other four Lattice ETFs screen components for factors like quality, momentum and value for more favorable risk-adjusted returns.

“Factor criteria is more appropriate for the industry. It is important to consider how value and quality can affect returns,” Wojnar added.

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