WAYNE, PA — Hartford Funds announced the launch of the Hartford Equity Premium Income ETF (Cboe: HEMI), an actively managed fund designed to deliver current income while preserving upside exposure to U.S. equities through a disciplined options strategy.
The new ETF pairs a core portfolio of U.S. stocks with a systematic call options overlay tied to the S&P 500, aiming to generate income in a tax-efficient manner while maintaining the potential for capital appreciation. The fund is sub-advised by Wellington Management Company LLP and jointly managed by Wellington’s Core Equity and Global Derivatives teams.
Hartford Funds said the launch reflects growing investor interest in actively managed ETFs, particularly strategies focused on income and defined outcomes.
“Active ETFs are capturing a larger share of total ETF flows, and outcome-oriented strategies are in high demand,” said Brian Kraus, head of product development at Hartford Funds. “HEMI reflects our commitment to meeting client needs through innovative solutions. We’re thrilled to collaborate once again with our strategic partner Wellington Management to launch a product that we feel can offer investors a compelling blend of yield, equity growth potential, and tax efficiency.”
HEMI seeks to produce predictable income through two primary sources: dividends from its equity holdings and premiums generated from selling call options. The fund will build an actively managed portfolio of U.S. stocks selected using fundamental research that targets improving business quality, momentum, and relative valuation. Alongside the equity strategy, the fund will systematically sell out-of-the-money call options on the SPDR S&P 500 ETF Trust or directly on the S&P 500 Index to generate incremental income.
The ETF may also employ tax-management techniques within the equity portfolio intended to reduce exposure to capital gains taxes, a feature Hartford Funds said is increasingly important for income-focused investors.
“We remain dedicated to developing innovative investment solutions, with a particular focus on the advantages of ETFs,” said Christina Kopec Rooney, head of U.S. wealth at Wellington Management. “Our extensive, ongoing collaboration with Hartford Funds reflects our commitment to partnerships that deliver long-term value and prioritize the needs of financial advisors and their clients.”
Portfolio management responsibility for HEMI rests with Douglas W. McLane, CFA, and Gordon R. Lawrence, CFA, both senior managing directors at Wellington Management. McLane leads the firm’s Disciplined Equity Team and manages U.S. large-cap strategies, while Lawrence heads Wellington’s Global Derivatives Group, overseeing derivatives strategies used for risk management and return generation across asset classes.
Listed on Cboe, the Hartford Equity Premium Income ETF uses the S&P 500 Index as its benchmark. Hartford Funds said the product is designed for income-seeking investors looking for an alternative to traditional dividend strategies amid ongoing market volatility.
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