ROAM | Hartford Multifactor Emerging Markets ETF

ROAM ISSUER

The ROAM, or Hartford Multifactor Emerging Markets Equity Index (LROEMX), serves as the underlying benchmark for the Hartford Funds, aiming to mirror the total return performance of this index before fees and expenses. The index is meticulously designed to strike a balance between risks and opportunities within the equity markets of emerging economies. Emphasizing constituents with favorable factor characteristics, the index employs a rules-based, proprietary methodology that incorporates multifactor stock selection and a comprehensive risk framework during the construction process. This methodology seeks to enhance return potential while reducing volatility by up to 15% compared to a capitalization-weighted universe of emerging market companies over a complete market cycle. The index comprises securities of issuers in emerging markets and utilizes an optimization process to achieve the desired composition, including sector, country, and size constraints, as well as positive factor scores. Components are adjusted semi-annually, and the index, established in June 2019, typically includes 250-350 components. The passive investment strategy employed by the fund aims to track the index without attempting to outperform it, seeking to reduce risks associated with active management. The fund invests at least 80% of its assets in securities of the index and may use derivatives for the remainder, along with cash and cash equivalents. With a focus on emerging markets, the index management process addresses various risks, including country, company, and currency concentrations, contributing to a well-rounded approach to portfolio construction. The index is sponsored by Lattice, with Solactive AG responsible for its calculation and distribution. More information on the index can be found at hartfordfunds.com.

ROAM DIVIDEND

The ROAM, or Hartford Multifactor Emerging Markets Equity Index (LROEMX), does not directly distribute dividends itself, as it is an index that serves as the benchmark for Hartford Funds rather than an investment product. However, investors in funds or ETFs that track the ROAM may receive dividends based on the performance of the underlying securities within the index. The dividend payments would depend on the dividend policies of the individual companies represented in the index. Investors seeking exposure to emerging market equities with potential dividend income may consider funds or ETFs tracking the ROAM, as they can benefit from the dividend-paying constituents within the index while aligning with the multifactor approach designed to enhance return potential and manage volatility. It's important for investors to review the specific dividend policies of the funds or ETFs that track the ROAM for a comprehensive understanding of potential income distributions.

ROAM TRACKING

The ROAM, represented by the Hartford Multifactor Emerging Markets Equity Index (LROEMX), employs a passive or indexing approach to tracking its investment objective. The fund seeks to replicate the total return performance of the underlying index, which is designed to balance risks and opportunities within emerging market equities. Utilizing a rules-based, proprietary methodology, the index incorporates multifactor stock selection and a comprehensive risk framework during the construction process. The passive strategy means that the fund does not aim to outperform the index but rather endeavors to closely mirror its performance. This approach is intended to reduce some of the risks associated with active management, such as over concentration in individual countries or securities, and aims to achieve lower costs and better after-tax performance by minimizing portfolio turnover. Investors looking for exposure to emerging market equities with a focus on a systematic, rules-based approach may find the ROAM strategy appealing for its commitment to tracking the index's performance over time.

ROAM CORRELATION

The ROAM, represented by the Hartford Multifactor Emerging Markets Equity Index (LROEMX), exhibits a correlation with the performance of the underlying securities within the index. The correlation measures the degree to which the fund's returns align with the movements of the index it tracks. The goal of the ROAM strategy is to closely replicate the total return performance of the Hartford Multifactor Emerging Markets Equity Index before fees and expenses. The index's methodology, which emphasizes multifactor stock selection and risk management, contributes to the correlation between the fund and the index. Investors seeking a fund with a strong correlation to the performance of emerging market equities, as represented by the index, may consider the ROAM strategy as a way to gain exposure to this asset class while benefiting from the systematic and rules-based approach employed in the index construction process.

ROAM SECTOR

The ROAM strategy, embodied by the Hartford Multifactor Emerging Markets Equity Index (LROEMX), takes a sector-conscious approach to its investment objective. The index methodology incorporates a multifactor stock selection process that considers factors such as value, momentum, and quality, while also applying a comprehensive risk framework. This multifactor approach is designed to balance risks and opportunities within the equity markets of emerging economies. The sector allocation within the index is subject to relative constraints, ensuring a diversified representation across various industries. The fund tracking the ROAM strategy aims to reflect the sector exposures of the index as closely as possible. Investors interested in a diversified approach to emerging market equities with a focus on sector characteristics may find the ROAM strategy appealing for its systematic and rules-based methodology that enhances return potential while managing volatility.

ROAM EXPOSURE

The ROAM strategy, represented by the Hartford Multifactor Emerging Markets Equity Index (LROEMX), offers investors exposure to a diversified portfolio of emerging market equities. The index's composition is carefully designed to balance risks and opportunities within the equity markets of emerging economies, emphasizing constituents with favorable factor characteristics. Through a multifactor stock selection process and a comprehensive risk framework, the index seeks to enhance return potential while managing volatility. Investors seeking exposure to emerging markets can consider funds or ETFs tracking the ROAM strategy, as it aims to capture the performance of the underlying index, providing a systematic and rules-based approach to navigating the complexities of emerging market investments. The exposure offered by the ROAM strategy aligns with the index's focus on factors such as value, momentum, and quality, providing a comprehensive representation of emerging market equities in a diversified manner.