Hartford Funds Launches Its First Commodity-Focused ETF

Rhea-AI Summary

Hartford Funds has launched its first commodity-focused ETF, the Hartford Schroders Commodity Strategy ETF (NYSE: HCOM), sub-advised by Schroder Investment Management North America. This actively managed ETF aims for long-term total return through investments in various commodity-related instruments, such as futures and swaps. With an investment focus on sectors like energy, agriculture, and metals, HCOM seeks to capitalize on current market opportunities. The ETF is benchmarked against the Bloomberg Commodity Total Return Index and is managed by experienced professionals.

Positive

• Launch of HCOM introduces a new investment option focused on commodities.
• HCOM aims for long-term total return, potentially appealing to investors.
• Diversification into commodity sectors may attract new investors.

Negative

• The ETF is new and has a limited operating history, posing risks for investors.
• Investments in commodities may increase liquidity risk and volatility.
• HCOM may incur more fees and be less tax-efficient compared to traditional ETFs.

Hartford Schroders Commodity Strategy ETF is Hartford Funds’ seventh actively managed ETF offering

WAYNE, Pa.--(BUSINESS WIRE)-- Hartford Funds today announced the launch of its first commodity-focused exchange-traded fund (“ETF”), Hartford Schroders Commodity Strategy ETF (NYSE: HCOM), which will be sub-advised by Schroder Investment Management North America Inc. and Schroder Investment Management North America Ltd (collectively, “Schroders”). HCOM seeks long-term total return by investing in a range of commodity-related instruments. The actively managed Fund’s performance benchmark will be the Bloomberg Commodity Total Return Index.

“Hartford Schroders Commodity Strategy ETF allows us to offer our clients exposure to an alternative asset class that we feel is ripe for opportunity in the current market environment,” said Vernon Meyer, Chief Investment Officer at Hartford Funds. “This product further demonstrates our commitment to providing both our existing and prospective clients diverse, long-term investing opportunities that can help them achieve their investment goals.”

HCOM will primarily invest in a range of commodity-related derivative instruments – such as futures and other commodity-linked swaps – along with cash or cash equivalents, such as certificates of deposit, treasury bills, floating-rate notes, and equities of commodity-related companies. The Fund will seek exposure to a range of commodity sectors from time to time including, but not limited to, the energy, agriculture and metals sectors. As the Fund’s sub-adviser, Schroders will consider fundamental, quantitative, and technical sentiment to determine the asset allocation to various commodities. HCOM may also invest in structured notes, debt securities, convertible securities, and foreign currency.

HCOM is listed on the New York Stock Exchange ARCA, Inc. The portfolio management team consists of James Luke, Malcolm Melville, and Dravasp Jhabvala, three dedicated investment professionals on Schroders’ Commodities team with an average of 17 years of investment experience.

For more information about the Hartford Schroders Commodity Strategy ETF, please visit hartfordfunds.com.

About Hartford Funds

Founded in 1996, Hartford Funds is a leading asset manager, which provides mutual funds, ETFs, and 529 college savings plans. Using its human-centric investing approach, Hartford Funds creates strategies and tools designed to address the needs and wants of investors. Leveraging partnerships with leading experts, Hartford Funds delivers insight into the latest demographic trends and investor behavior.

The firm’s product line-up includes more than 50 mutual funds and ETFs in a variety of styles and asset classes. Its mutual funds (with the exception of certain fund of funds) are sub-advised by Wellington Management or Schroder Investment Management North America Inc. The strategic beta ETFs offered by Hartford Funds are designed to help address investors’ evolving needs by leveraging a unique risk-optimized approach, which identifies risks within each asset class and then deliberately and systematically re-allocates capital toward risks more likely to enhance return potential. Excluding affiliated funds of funds, as of June 30, 2021, Hartford Funds’ investment advisory business had approximately $153.8 billion in discretionary and non-discretionary assets under management. For more information about our investment family, visit http://www.hartfordfunds.com.

About Schroders

As a global investment manager, we actively and responsibly manage investments for a wide range of institutions and individuals, to help them meet their financial goals and prepare for the future. The world is forever changing, and with our clients at the center of everything we do, we understand the need to continue to adapt and evolve our business in line with what matters most to our clients today, and in the future.

Our ongoing success is built on a history of experience and expertise, whereby we partner with our clients to construct innovative products and solutions across our five business areas consisting of Private Assets & Alternatives through our Schroders Capital brand, Solutions, Mutual Funds, Institutional and Wealth Management, and invest in a wide range of assets and geographies. By combining our commitment to active management and focusing on sustainability, our strategic capabilities are designed to deliver positive outcomes for our clients.

We are responsible for $967.5 billion* assets of our clients, managed locally by 42 investment teams worldwide. As a global business with over 5,500 talented staff across 37 locations, we are able to stay close to our clients and understand their needs. We have over 200 years of experience in investment and innovation and remain committed to creating a better future by investing responsibly for our clients.

Further information about Schroders can be found at www.schroders.com/us.

*as of June 30, 2021

HIG-W

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in The Hartford’s Quarterly Reports on Form 10-Q, our 2020 Annual Report on Form 10-K and the other filings The Hartford makes with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.

From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at http://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the "Email Alerts" section at http://ir.thehartford.com.

Important Risks: The Fund is new and has a limited operating history. Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund's shares may fluctuate due to changes in the market value of the Fund's holdings. The Fund's share price may fluctuate due to changes in the relative supply of and demand for the shares on an exchange. The Fund is actively managed and does not seek to replicate the performance of a specified index. ● Investments in the commodities market may increase the Fund's liquidity risk, volatility and risk of loss if adverse developments occur. ● Investments linked to prices of commodities may be considered speculative. Significant exposure to commodities may subject the Fund to greater volatility than traditional investments. The value of such instruments may be volatile and fluctuate widely based on a variety of factors. ● Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, regulatory and counterparty risk. ● By investing in a Cayman Subsidiary, the Fund is indirectly exposed to the risks associated with a non-U.S. subsidiary and its investments. ● To the extent the Fund focuses on one or more sectors, the Fund may be subject to increased volatility and risk of loss if adverse developments occur. ● In certain instances, unlike other ETFs, the Fund may effect creations and redemptions partly or wholly for cash, rather than in-kind, which may make the Fund less tax-efficient and incur more fees than an ETF that primarily or wholly effects creations and redemptions in-kind. ● Integration of environmental, social, and/or governance (ESG) factors into the investment process may not work as intended.

Investors should carefully consider a fund’s investment objectives, risks, charges and expenses. This and other important information is contained in the fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.

Exchange-traded products are distributed by ALPS Distributors, Inc. (ALPS). Advisory services are provided by Hartford Funds Management Company, LLC (HFMC), an SEC registered investment adviser. Certain funds are sub-advised by Schroder Investment Management North America Inc (SIMNA). Schroder Investment Management North America Ltd. (SIMNA Ltd) serves as a secondary sub-adviser to certain funds. SIMNA and SIMNA Ltd are SEC registered investment advisers. Hartford Funds refers to Hartford Funds Distributors, LLC, Member FINRA, Lattice Strategies LLC, and HFMC, which are not affiliated with ALPS, SIMNA or SIMNA Ltd or any other sub-adviser.

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Media:

Kayce D’Onofrio

646.818.9247

kdonofrio@prosek.com

Source: Hartford Funds

FAQ

What is the Hartford Schroders Commodity Strategy ETF (HCOM)?

The Hartford Schroders Commodity Strategy ETF (HCOM) is Hartford Funds' first commodity-focused actively managed ETF, aiming for long-term total return via various commodity-related instruments.

When was HCOM launched?

HCOM was launched recently as part of Hartford Funds' expansion into commodity-focused investments.

What is the investment strategy of HCOM?

HCOM invests in commodity-related derivatives, including futures and swaps, while seeking exposure to sectors like energy, agriculture, and metals.

What benchmarks does HCOM use?

The performance of HCOM is benchmarked against the Bloomberg Commodity Total Return Index.

Who manages the Hartford Schroders Commodity Strategy ETF?

HCOM is sub-advised by Schroder Investment Management North America, managed by a team with an average of 17 years of investment experience.