The Hartford ETFs screen components quality, momentum and value for more favorable risk-adjusted returns.
“Our approach seeks to provide more analytical procedures,” Lucas said, adding that the strategies hone in on areas that are more underallocated. The multi-factor ETFs “think about returns in a risk creative way.”
Related: International Small-Cap ETFs Deliver Stellar Returns
Specifically, the funds all share a security selection criteria broken by 50% value, 30% momentum and 20% quality. Additionally, the funds may also include the size and volatility factors where size refers to smaller companies historically outperforming and volatility covering companies that have exhibited a history of smaller swings.
Hartford’s line of multi-factor ETF strategies also include the Hartford Multifactor Developed Markets (ex-US) ETF (NYSEArca: RODM), Hartford Multifactor US Equity ETF (NYSEArca: ROUS), Hartford Multifactor Global Small Cap ETF (NYSEArca: ROGS) and Hartford Multifactor REIT ETF (NYSEArca: RORE),
For more information on alternative index-based strategies, visit our smart beta category.