Hartford Funds’ disciplined U.S. equity ETF offers attractive dividends while serving as a style-pure core ETF.
Dividend stocks can help enhance total returns, particularly in down or volatile markets. Dividend stocks also look attractive in challenging market environments as companies paying steady, attractive dividends are largely seen as more stable securities. The conundrum for investors, however, is that most ETFs holding dividend stocks tilt heavily toward value stocks.
“Given the recent market volatility, many advisors are looking for a more fundamentally focused large-cap strategy. Heading to 2024, risk mitigation is important,” said Todd Rosenbluth, head of research at VettaFi.
The Hartford Disciplined US Equity ETF (HDUS ) is a U.S. large-cap, style-pure core ETF that seeks to deliver enhanced relative total returns while minimizing uncompensated active risks. Furthermore, HDUS offers attractive income without requiring investors make a style bet on value.
Notably, the Hartford Funds’ style-pure core ETF typically yields 30% above the S&P 500. The fund’s underlying index had a dividend yield of 2.19% as of September 30. In comparison, the Russell 1000 was yielding 1.57% at the end of September, while the S&P 500 was yielding 1.62%.
HDUS leverages a rules-based process that seeks to target balanced and consistent exposure over time across multiple risk factors for return enhancement potential. Additionally, the style-pure core fund seeks to provide relative diversification to the index’s starting universe.
Launched just under a year ago, HDUS has $91 million in assets under management. The fund has accreted $86 million in net flows year to date.
The ETF charges 19 basis points, making it a low-cost offering fit for a long-term style-pure core allocation.
HDUS is part of Hartford Funds’ product suite of multifactor ETFs. The Hartford Multifactor US Equity ETF (ROUS ) offers similar exposure to the U.S. equity market. However, ROUS is designed to be more defensive, potentially offering less upside potential than HDUS.
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.