WAYNE, PA — Hartford Funds recently announced the launch of its first ESG-focused exchange-traded fund (“ETF”), Hartford Schroders ESG US Equity ETF (CBOE: HEET), which will be sub-advised by Schroder Investment Management North America Inc. and Schroder Investment Management North America Ltd.
HEET seeks long-term capital appreciation by investing in a diversified portfolio of equities and equity-related securities of U.S. companies and in investments that are expected to meet environmental, social, and/or governance criteria (“ESG”), as identified by the Fund’s sub-advisers. The Fund will seek to achieve a better ESG profile compared to its benchmark, the Russell 1000 Index.
Using a systematic investment approach developed by Schroders, companies in the universe will be assessed quantitatively on their ESG criteria and factor characteristics, including: Value, Profitability, Momentum, and Low Volatility. ESG measures include, but are not limited to, the strength of environmental practices, climate change impact, and positive stakeholder relationships. HEET will seek to hold a diversified portfolio of US stocks with favorable combinations of ESG and factor exposures. Additionally, the Fund is designed to have less than half the carbon footprint, which is measured by carbon emissions divided by sales, of its benchmark.
“The Hartford Schroders ESG US Equity ETF enables us to offer a flexible, cost-effective strategy that is designed to help investors achieve their long-term investment goals, while also having a positive influence on our world,” said Vernon Meyer, Chief Investment Officer at Hartford Funds. “We believe that applying ESG principles to an ETF, and leveraging Schroders’ quantitative investing expertise and proprietary approach to ESG investing, can provide stronger returns and make for a better investor experience on multiple levels.”
HEET is listed on the CBOE BZX Exchange, Inc. and its estimated expense ratio is 0.39%. Ashley Lester, PhD, Head of Systematic Investments at Schroders, will serve as the portfolio manager of the ETF.
For more information about the Hartford Schroders ESG US Equity ETF, please visit hartfordfunds.com.
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