Hartford Municipal Opportunities ETF

Hartford Municipal Opportunities ETF (HMOP) is an actively managed fund of US municipal bonds. Sub-adviser Wellington Management runs it for The Hartford, aiming for income that is generally exempt from federal income tax. Unlike many muni funds, it may put up to 35% of net assets in lower-rated "junk" munis. Its 0.29% expense ratio is well above iShares National Muni Bond ETF (0.05%) and Vanguard Tax-Exempt Bond ETF (0.03%).

• Over the year to Oct 27, 2026, HMOP returned 0.0%, 3rd of 8 among similar funds.
• Its 5-year annualized return was +1.1%.
• In the 2020 COVID crash it fell 11.2% and regained its old high 4.5 months after the low.
• Its worst full calendar year was 2022 (-8.4%); its best was 2019 (+7.7%).
• The deepest fall in its price history was 13.3% (Jul 19, 2021 to Oct 26, 2022), recovered by Sep 5, 2024.

As of Jul 31, 2026, the fund held 624 securities; the ten largest made up 9.75% of assets.

The bonds mature in 13.8 years on average (weighted by size), with an average coupon of 4.73%.

• Over the three months to Jul 31, 2026, investors added a net $54.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.45%, +0.62%, -1.47%.

HMOP does not track an index. Its sub-adviser, Wellington Management, picks bonds it considers attractive for their yield while also weighing total return (income plus price changes). At least 80% of net assets must be in municipal securities. These are bonds that states, cities and public agencies issue to pay for roads, utilities, housing and other projects. Up to 35% may go into non-investment-grade, or "junk," munis. They pay more because the issuer is more likely to miss payments.

Wellington pairs a top-down view of the economy and interest rates with its own bottom-up research. It looks for relative value among sectors, within sectors and between individual bonds. There is no fixed weighting rule or rebalancing schedule. Bonds can be of any maturity, and holdings are spread across states and sectors. The prospectus filed November 26, 2025, lists turnover of 43%, meaning the fund replaced a bit under half its portfolio over a year.

As of July 31, 2026, it held 624 positions, and the 10 largest made up just 9.75% of assets. The largest was a Southeast Energy Authority A Cooperative District bond at 2.2%, followed by New York City Transitional Finance Authority (1.3%) and State of Texas (1.0%). Average maturity was 13.8 years. Some bonds may pay taxable income, including income subject to the Alternative Minimum Tax.

• HMOP charges 0.29% a year, versus an average of 0.24% for the similar funds below (6th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $368 over 10 years (assuming a 5% annual return).

HMOP pays monthly income that is mostly exempt from federal income tax, and Wellington actively reaches for extra yield.

HMOP could add monthly, mostly federally tax-free income. That tax benefit counts mainly in a taxable account. Its trailing 12-month yield was 3.58% as of October 27, 2026, and it charges 0.29% a year. For a bond fund, its drops have been real. It fell 11.2% in March 2020 and recovered in about four and a half months. From July 2021 to October 2022 it lost 13.3% as interest rates rose, and it took until September 2024, about 22 months, to recover. Its worst calendar year was 2022, a loss of 8.43%. It launched in December 2017, so it has no 2008 record. Someone forced to sell shares in a bad year could lock in losses, and its junk-bond allowance adds credit risk on top of rate risk. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).