HSRT Profile
The Hartford Short Duration ETF is strategically designed to offer investors a targeted approach to fixed income investing with a focus on short-duration securities. The fund aims to deliver attractive yields and total returns by investing primarily in investment-grade bonds. These securities are selected based on rigorous analysis to ensure they provide compelling value relative to their yield and overall return potential. The short duration strategy is intended to mitigate interest rate risk, making the fund suitable for investors seeking stability and income with reduced sensitivity to interest rate fluctuations.
Under normal market conditions, the Hartford Short Duration ETF invests the majority of its assets in investment-grade securities. This category includes bonds rated BBB- or higher by major credit rating agencies, which generally offer lower credit risk compared to non-investment grade bonds. By maintaining a portfolio predominantly composed of investment-grade securities, the fund aims to balance yield generation with credit quality, offering a conservative approach to income investing.
In addition to investment-grade bonds, the fund has the flexibility to invest up to 35% of its net assets in non-investment grade fixed income securities. These lower-rated securities, also known as high-yield or junk bonds, can provide higher yields compared to investment-grade bonds but come with increased credit risk. The allocation to non-investment grade securities is carefully managed to enhance potential returns while controlling risk, reflecting the fund's commitment to achieving attractive total returns across different market conditions.
Managed by Hartford Funds, a well-regarded asset management firm with a robust track record in fixed income investing, the Hartford Short Duration ETF leverages extensive research and expertise to construct its portfolio. The firm's focus on rigorous credit analysis and market insights helps ensure that the fund's investments align with its objective of delivering a favorable risk-return profile. By blending investment-grade and selective high-yield securities, the fund seeks to offer investors a balanced approach to short-duration fixed income investing.
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