Launched on 02/25/2015, the Hartford Multifactor Developed Markets (ex-US) ETF (RODM) is a smart beta exchange traded fund offering broad exposure to the Foreign Large Value ETF category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is sponsored by Hartfordfunds. It has amassed assets over $1.56 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
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for RODM are 0.29%, which makes it one of the cheaper products in the space.
It's 12-month trailing dividend yield comes in at 2.85%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Looking at individual holdings, Equinor Asa Common Stock Nok2.5 (EQNR) accounts for about 1.32% of total assets, followed by Orange Common Stock Eur4.0 (ORA) and Ericsson Lm B Shs Common Stock Sek5.0 (ERICB).
Its top 10 holdings account for approximately 10.07% of RODM's total assets under management.
Performance and Risk
The ETF return is roughly 11.74% so far this year and is up about 22.2% in the last one year (as of 07/10/2026). In the past 52-week period, it has traded between $33.53 and $41.63
RODM has a beta of 0.65 and standard deviation of 11.74% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 355 holdings, it effectively diversifies company-specific risk .
Alternatives
Hartford Multifactor Developed Markets (ex-US) ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could 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 $19.85 billion in assets, Schwab Fundamental International Equity ETF has $24.14 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
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Hartford Multifactor Developed Markets (ex-US) ETF (RODM): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).