Hartford Funds has launched a new ETF that seeks to provide current income that is generally exempt from federal income taxes and long-term total return.
On Thursday, Hartford Funds launched its Hartford Municipal Opportunities ETF (NYSE: HMOP), the company’s fourth actively managed fixed income and 11th overall ETF.
The actively managed ETF, sub-advised by Wellington Management Company, is designed to provide financial advisors and their clients with an investing strategy that seeks tax-exempt income by investing in opportunities in investment grade and high-yield municipal bonds.
“Investors are very tax-aware and, as interest rates go up, advisors are seeking fixed income strategies with the potential for greater after-tax returns and income,” said Vernon Meyer, Chief Investment Officer of Hartford Funds. “HMOP offers a diversified option for this challenge in a more tax-efficient ETF, while tapping into Wellington’s deep knowledge of managing municipal funds backed by credit research expertise.”
HMOP offers an actively managed municipal bond strategy that invests in investment grade and non-investment grade municipal securities across states, sectors, and different parts of the yield curve. The strategy seeks to deliver current income generally exempt from federal income taxes and long-term total return. HMOP has an expense ratio of 0.35 percent.
Wellington Management’s Brad W. Libby, Managing Director and Fixed Income Portfolio Manager/Credit Analyst, and Timothy D. Haney, CFA, Senior Managing Director and Fixed Income Portfolio Manager, and, will serve as the portfolio managers of the Hartford Municipal Opportunities ETF.
For more information on new fund products, visit our new ETFs category.