A smart beta exchange traded fund, the Hartford Multifactor Developed Markets (ex-US) ETF (RODM) debuted on 02/25/2015, and offers broad exposure to the Foreign Large Value ETF category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is managed by Hartfordfunds. RODM has been able to amass assets over $1.65 billion, making it one of the larger ETFs in the Foreign Large Value ETF. Before fees and expenses, RODM seeks to match the performance of the Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index.
The Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index seeks to de-concentrate country, currency, and individual company risks in developed market economies (ex US).
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
With one of the cheaper products in the space, this ETF has annual operating expenses of 0.29%.
It has a 12-month trailing dividend yield of 2.77%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Royal Bank Of Canada Common Stock (RY) accounts for about 1.22% of total assets, followed by Bank Of Montreal Common Stock (BMO) and Asml Holding Nv Ny Reg Shs Ny Reg Shrs Eur.09 (ASML).
The top 10 holdings account for about 11.04% of total assets under management.
Performance and Risk
The ETF return is roughly 14.87% so far this year and is up about 20.38% in the last one year (as of 09/10/2026). In the past 52-week period, it has traded between $34.98 and $42.65
The fund has a beta of 0.64 and standard deviation of 11.67% for the trailing three-year period, which makes RODM a medium risk choice in this particular space. With about 353 holdings, it effectively diversifies company-specific risk .
Alternatives
Hartford Multifactor Developed Markets (ex-US) ETF is not a suitable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. Instead, there are other ETFs in the space which investors should consider.
Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield Index Fund ETF Shares has $21.91 billion in assets, Schwab Fundamental International Equity ETF has $26.27 billion. VYMI has an expense ratio of 0.07% and FNDF changes 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Hartford Multifactor Developed Markets (ex-US) ETF (RODM): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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