One of Hartford Funds’ multifactor ETFs providing international exposure has recently seen a jump in flows and investor interest.
The Hartford Multifactor Developed Markets (ex-US) ETF (RODM) has seen $51 million in one-month net flows, bringing its year-to-date net flows to $30 million.
There are unique opportunities in international markets right now. In general, international stocks are trading at more attractive P/E ratios than U.S. stocks. Additionally, international equities can be a great source of performance and serve as a portfolio diversifier.
See more: “Watch Out for Concentration in Emerging Markets”
“Many leading multinational companies are based outside of the U.S. and that a home-biased client portfolio would miss out on. These companies have strong financial profiles and are often undervalued by Americans,” Todd Rosenbluth, head of research at VettaFi, said.
Under the Hood of Multifactor International Fund RODM
RODM’s holdings include well-known companies such as Novartis (NOVN), HSBC Holdings (HSBA), Roch Holding (ROG), and BAE Systems (BA). RODM differs from category peers as targets desired return-enhancing factors and reduces exposure to unrewarded risk exposures.
Furthermore, RODM seeks to reduce volatility by targeting a 15% volatility reduction over a complete market cycle.
See more: “Diversify Emerging Markets Exposure Away From Xi’s Control With ROAM”
Multifactor strategies can be particularly appealing in the international equity space, as international markets are generally more volatile than U.S. markets. This is where low volatility and value factor expressions can be particularly impactful and lead to outperformance.
Even as a risk off sentiment has emerged in 2023, many investors are wary to move back into equities – particularly international equities and other segments o the market that may be deemed riskier. A multifactor international ETF like RODM can serve as a solution for investors looking to get international exposure but take on less risk.
For more news, information, and analysis, visit the Multifactor Channel.
Investing involves risk, including the possible loss of principal.
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.