Morningstar Magazine - December 2017/January 2018 - 54

Are your clients avoiding investment
risk or just ignoring it?
Hartford Funds Multifactor ETFs make risk
the most important factor of all.

At Hartford Funds, we believe in human-centric investing - understanding the reasons why investors do what they
do. So we're not surprised that with all the enthusiasm for exchange-traded funds, your clients may be missing an
important fact: traditional passive ETFs1 can come with what we believe are unintended risks.
For instance, investors purchasing an emerging market capitalization-weighted ETF may not realize that they are
putting over 25% of their dollars in China.2 That's a lot of eggs in one basket.
The Hartford Multifactor Emerging Markets ETF (ROAM), on the other hand, is managed to an index that seeks better
balance by allocating less towards countries like China and South Korea and more towards other countries we believe
have growth potential like Malaysia, Indonesia and Thailand.
In fact, all Hartford Funds Multifactor ETFs are designed with an approach we call intentional risk allocation. A strategy that
can help your clients feel smarter while working to reach their long-term life goals.
Learn more at hartfordfunds.com/multifactor

1
Traditional passive ETFs refers to market capitalization-weighted exchange-traded funds. Market capitalization refers to a security whose components are
weighted based on the total market value of their outstanding shares.
2
Based on MSCI Emerging Markets Index as of December 31, 2016. The MSCI Emerging Markets Index is a free ﬂoat-adjusted market capitalization-weighted
index that is designed to measure equity market performance in the global emerging markets, consisting of 24 emerging market country indices.
Investment Objective: ROAM seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index
based upon the emerging markets of the world.

Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is
contained in the fund's prospectus and summary prospectus (if available), which can be obtained by visiting hartfordfunds.com. Please
read it carefully before investing.
A Word About Risk
All investments are subject to risk, including the possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency ﬂuctuation
or political or economic uncertainty. These risks are generally greater for investments in emerging markets. There is no assurance that the investment process
will consistently lead to successful investing. Diversiﬁcation does not eliminate the risk of experiencing investment losses. There is no assurance that the Fund
will achieve its stated objective.
Exchange-traded products are distributed by ALPS Distributors, Inc., which is not aﬃliated with Hartford Funds.

http://www.hartfordfunds.com/multifactor http://www.hartfordfunds.com

Table of Contents for the Digital Edition of Morningstar Magazine - December 2017/January 2018