Hartford Funds expanded on its line of actively managed fixed-income ETFs with core investment strategy to help investors access high quality bond exposure from multiple perspectives, investment styles and time horizons.
On Thursday, Hartford Funds launched the Hartford Core Bond ETF (CBOE: HCRB), which comes with a 0.29% expense ratio.
Wellington Management, which also subadvises the firm’s Hartford Total Return Bond ETF (NYSEArca: HTRB), will manage HCRB’s strategy. The ETF will be managed by Wellington Management’s Joseph F. Marvan, Senior Managing Director, Fixed-Income Portfolio Manager; Robert D. Burn, Managing Director, Fixed-Income Portfolio Manager; and Campe Goodman, Senior Managing Director, Fixed-Income Portfolio Manager.
“This product is another great example of the power of our collaborative relationship with Wellington. We’ve built a potential solution that leverages Wellington’s extensive fixed income and investing expertise with Hartford Funds’ deep understanding of financial advisor and end investor needs,” Vernon Meyer, Chief Investment Officer at Hartford Funds, said in a note. “Hartford Core Bond ETF further solidifies our steadfast confidence in, and commitment to, actively managed fixed income ETFs sub-advised by world class managers.”
The Hartford Core Bond ETF will try to generate long-term total return by investing in fixed income securities that Wellington Management Company LLP considers to be attractive from a total return perspective, according to the fund prospectus.
Specifically, HCRB will invest primarily in investment grade fixed income securities issued by both U.S. and foreign issuers, including U.S. Government, credit and securitized instruments. The ETF may include, (1) securities issued or guaranteed as to principal or interest by the U.S. Government, its agencies or instrumentalities; (2) non-convertible and convertible debt securities issued or guaranteed by U.S. corporations or other issuers (including foreign issuers); (3) asset-backed and mortgage-related securities, including collateralized mortgage and loan obligations; and (4) securities and loans issued or guaranteed as to principal or interest by a sovereign government or one of its agencies or political subdivisions (including quasi-sovereigns), supranational entities such as development banks, non-U.S. corporations, banks or bank holding companies, or other foreign issuers.
“Hartford Core Bond ETF is designed to satisfy an increasing investor appetite for high quality core bond offerings, especially in ETF vehicles,” Ted Lucas, Head of Investment Strategies and Solutions at Hartford Funds, said in a note. “With the prospect of increasing market volatility, we believe this offering is particularly relevant for investors seeking options that aim to provide returns while managing risk.”
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