ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Multifactor Channel
  2. As Emerging Markets Outperform, Check Out ROAM
Multifactor Channel
Share

As Emerging Markets Outperform, Check Out ROAM

Elle CarusoJul 17, 2023
2023-07-17

Emerging markets outpaced the U.S. market last week, highlighting the importance of challenging home country bias in client portfolios.

The benchmark MSCI Emerging Markets index outpaced the broad U.S. market, measured by the Russell 3000, by nearly 260 basis points last week. International stocks are also compelling from a valuation standpoint, as they are trading at more attractive multiples than U.S. equities.

“Advisors are increasingly turning to emerging markets that are growing faster than developed international markets. These markets are more likely to have tighter monetary policies setting them up for faster growth.

International equities are currently cheaper than they’ve been 75% of the time over the past 30 years, according to Hartford Funds, making now an ideal time to create or add to an emerging markets allocation.

See more: ROAM Performance Edge Is in the Details

Why Many Investors Underallocate to Emerging Markets

Volatility is a key reason why many investors have historically avoided emerging markets. Price swings are generally more extreme in emerging markets than developed markets.

It is possible to access emerging markets with less volatility, however.  A multifactor emerging markets ETF like the Hartford Multifactor Emerging Markets ETF (ROAM A-) targets lower volatility securities.

ROAM offers broad exposure to emerging market equities while also seeking to reduce volatility by targeting a 15% volatility reduction over a complete market cycle.


Content continues below advertisement

MSACXUSTR MSEM ROAM RUA Chart

See more: Multifactor Emerging Markets ETF ‘ROAM’ Handily Outpaces Benchmark YTD

ROAM outpaced the emerging markets benchmark by 10 basis points last week, gaining 4.9%. Meanwhile, the U.S. total market benchmark climbed 2.2%, each on a total return basis. Year to date as of July 14, ROAM has climbed 14.5% while the emerging markets benchmark has gained 9.7%.

The return gap is even more significant over longer durations. Over a one-year period, ROAM is up 19.7% while the emerging markets benchmark is up 10.5%. Over three years, ROAM is up 24.4% while the emerging markets benchmark is up 7.1, nonannualized.

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.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X