Hartford Launches Active Equity ETF via Mutual Fund Conversion

Hartford Funds has added the first active equity ETF to its lineup through the conversion of an existing mutual fund with a 27-year track record.

The Hartford Quality Value ETF (QUVU) is subadvised by Wellington Management. The active equity ETF is managed by the same team behind the predecessor Hartford Quality Value Fund. Furthermore, QUVU’s management team collectively brings 64 years of industry experience, 43 of which at Wellington, according to the firm.

“Advisors are increasingly turning to actively managed ETFs in 2023, having gained comfort in the structure. It’s great to see Hartford bring more of their expertise into the ETF market,” said Todd Rosenbluth, head of research at VettaFi.

Under the Hood of Active Equity ETF QUVU

In addition to using the same portfolio management team, QUVU maintains the same philosophy and process as the predecessor fund.

The active equity ETF is a traditional large-cap value offering. The fund invests in high-quality, undervalued companies believed to be in out-of-favor industries with less downside risk than the overall market, according to a statement from the firm.

Mutual-fund-to-ETF conversions have been a significant trend in the industry in recent years. The ETF wrapper offers investors exposure to the same strategy but with lower fees and a more tax-efficient vehicle.

QUVU charges just 45 basis points, whereas the predecessor fund charged 95 basis points. The predecessor fund had accreted $201 million in assets during its 27-year track record.

Hartford Funds’ ETF lineup includes the $1.5 billion Hartford Multifactor Developed Markets (ex-US) ETF (RODM), the $1.3 billion Hartford Total Return Bond ETF (HTRB), as well as the $386 million Hartford Multifactor US Equity ETF (ROUS).

See more: “Use Multifactor ETFs to Position Defensively and Protect Gains

For more news, information, and analysis, visit the Multifactor Channel.

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This article was prepared as part of Hartford Funds paid sponsorship with VettaFi. Hartford Funds is not affiliated with VettaFi and was not involved in drafting this article. The opinions and forecasts expressed are solely those of VettaFi. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, a recommendation for any product or as investment advice.