At a glance
HTAB charges 0.39% a year, above the 0.13% average of the 7 funds most like it (the most expensive of 8). It has $288.2M in assets, the 8th largest of that group; it paid 3.97% of its price in distributions over the past 12 months, monthly. Over the past year it returned −1.5% with distributions reinvested, the weakest of those 8 funds; over three years it returned +4.9% a year. At its worst it fell 8.6% in the 2020 crash (S&P 500: 33.7%) and 12.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 22 months after the lows. Its ten largest positions make up 27.5% of the fund, out of 170 in all.
The short version
Hartford Schroders Tax-Aware Bond ETF (HTAB) is an actively managed bond fund. It moves between tax-exempt municipal bonds and taxable bonds, aiming for the most total return after taxes. Municipal bonds made up about 68% of assets as of July 31, 2026. Its 0.39% expense ratio is well above index muni funds such as Vanguard Tax-Exempt Bond ETF (VTEB) at 0.03%. Its 21.2-year average maturity also makes it more sensitive to interest rates.
Price history
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HTAB -1.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HTAB official prospectus, to Dec 31, 2024 | — | +1.94% | — | +1.00% | — | +2.12% |
| HTAB price data to Oct 27, 2026 | -1.0% | -1.5% | +4.9% | +0.3% | — | +1.9% |
- Over the year to Oct 27, 2026, HTAB returned -1.5%, 8th of 8 among similar funds.
- Its 5-year annualized return was +0.3%.
- In the 2020 COVID crash it fell 8.6% and regained its old high 2 months after the low.
- Its worst full calendar year was 2022 (-8.3%); its best was 2019 (+8.0%).
- The deepest fall in its price history was 14.8% (Jul 19, 2021 to Oct 24, 2022), recovered by Oct 1, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -1.0% | — |
| 2025 | +2.9% | — |
| 2024 | +1.5% | +1.94% |
| 2023 | +7.1% | +6.68% |
| 2022 | -8.3% | -8.45% |
| 2021 | -0.1% | +0.02% |
| 2020 | +5.4% | +5.56% |
| 2019 | +8.0% | +7.87% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 8% over that stretch · deepest drop along the way 8.6%, back to its old high 2 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 11.3% over that stretch · deepest drop along the way 12.3%, back to its old high 22.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.5500 | |
| 2025 | $0.7500 | +10.3% |
| 2024 | $0.6800 | +7.9% |
| 2023 | $0.6300 | +46.5% |
| 2022 | $0.4300 | -6.5% |
| 2021 | $0.4600 | +27.8% |
| 2020 | $0.3600 | -41.4% |
| 2019 | $0.6148 |
What's inside
As of Jul 31, 2026, the fund held 170 securities; the ten largest made up 27.5% of assets, and 12.06% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| United States Treasury Bonds and notes | 5.12% | |
| Freddie Mac Multifamily ML Certificates Bonds and notes | 3.22% | |
| Delaware State Housing Authority Bonds and notes | 3.09% | |
| New Mexico Mortgage Finance Authority Bonds and notes | 2.85% | |
| FHLMC Multifamily VRD Certificates Bonds and notes | 2.84% | |
| FHLMC Multifamily VRD Certificates Bonds and notes | 2.43% | |
| Texas Municipal Gas Acquisition & Supply Corp V Bonds and notes | 2.20% | |
| County of Iron UT Sales Tax Revenue Bonds and notes | 2.01% | |
| Main Street Natural Gas Inc Bonds and notes | 2.00% | |
| Astoria Hospital Facilities Authority Bonds and notes | 1.73% | |
| Southeast Energy Authority A Cooperative District Bonds and notes | 1.72% | |
| Alabama Housing Finance Authority Bonds and notes | 1.66% | |
| Southeast Energy Authority A Cooperative District Bonds and notes | 1.65% | |
| Crowley Independent School District Bonds and notes | 1.50% | |
| New York State Dormitory Authority Bonds and notes | 1.48% |
By country
United States 86.88%By issuer
Municipalities 67.88%US government-sponsored enterprises 9.84%US Treasury 5.8%Companies 3.36%The bonds mature in 21.2 years on average (weighted by size), with an average coupon of 4.72%.
Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $9.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.45%, +0.75%, -1.56%.
How it works
HTAB is actively managed and does not track an index. Sub-adviser Schroder Investment Management North America chooses the bonds. Normally at least 80% of assets sit in U.S. dollar-denominated, investment-grade bonds of any maturity, meaning at least one major rating agency places them in its top four grades. Picks rest on relative value: how a bond is priced against similar bonds, supply and demand, and yield.
Aiming for total return after taxes, the managers shift freely between taxable and tax-exempt bonds, taking into account the maximum federal tax rates. Interest on municipal bonds is generally free of federal income tax, though not always the alternative minimum tax or state tax. To pay tax-exempt dividends, at least 50% of assets must be tax-exempt at each quarter's end. The fund may hold over 25% of assets in each of California, New York and Texas municipal bonds.
To limit taxable gains, the managers avoid selling big winners, hold bonds long enough to sidestep short-term gains, sell higher-cost holdings first and offset gains with losses. Turnover, a measure of yearly trading, was still 66%. Futures may be used to manage interest-rate sensitivity, though the fund held no derivatives as of July 31, 2026. Payouts can mix taxable and tax-exempt income.
What it really costs
- HTAB charges 0.39% a year, versus an average of 0.13% for the similar funds below (8th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $493 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HTAB | $40 | $125 | $219 | $493 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays out monthly and aims to keep more of that income after tax, which matters most in a taxable account.
HTAB's tax-aware approach helps mostly in a taxable account. Inside an IRA or 401(k), tax-exempt interest brings no extra benefit. Over the 12 months to October 27, 2026, the fund yielded 3.97%, paid monthly. It launched in 2018, so it has no record from 2008. In the 2020 COVID crash it fell 8.6% and recovered in about two months. Rising rates hurt more. It lost 8.45% in 2022, its worst calendar year. Its deepest drop, 14.8% from July 2021 to October 2022, took about 23 months to recover. A retiree who sold shares during that stretch would have locked in losses. Under the SEC's standard $10,000 example, costs come to $40 in the first year and $493 over 10 years. That is far more than index muni funds charge. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors in higher federal tax brackets with bonds in taxable accounts who want managers to choose between tax-exempt and taxable bonds.
- Retirees who want monthly income; the 12-month trailing yield was 3.97% as of October 27, 2026.
- People who prefer active bond picking to an index and accept 66% turnover across about 170 holdings, led by muni housing and gas-supply bonds.
Look elsewhere if
- Cost-focused investors: the 0.39% expense ratio compares with 0.03% for VTEB and 0.05% for MUB.
- Savers who hold bonds only in IRAs or 401(k)s, where tax-exempt interest adds no tax benefit.
- Anyone uneasy with interest-rate swings: with a 21.2-year average maturity, it fell 14.8% from 2021 to 2022 and took about 23 months to recover.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| HTAB this fund | 21.2 yrs | 0.39% | $288.2M | -1.5% | +4.9% |
| VTEB Vanguard Tax-Exempt Bond ETF | 14.5 yrs | 0.03% | $48.52B | +0.1% | +4.4% |
| MUB iShares National Muni Bond ETF | 13.5 yrs | 0.05% | $45.38B | -0.2% | +3.7% |
| FBND Fidelity Total Bond ETF | 14.4 yrs | 0.36% | $28.16B | -0.2% | +5.4% |
| AGG iShares Core U.S. Aggregate Bond ETF | 12.4 yrs | 0.03% | $138.32B | -0.4% | +4.7% |
| IUSB iShares Core Total USD Bond Market ETF | 11.8 yrs | 0.06% | $43.00B | -0.3% | +5.1% |
| BND Vanguard Total Bond Market ETF | 11.7 yrs | 0.03% | $397.11B | -0.4% | +4.7% |
| MINT PIMCO Enhanced Short Maturity Active Exchan… | 6.3 yrs | 0.35% | $16.43B | +3.9% | +4.9% |
Questions investors ask
Is HTAB a municipal bond fund?
Mostly, but not only. As of July 31, 2026, municipal bonds made up about 68% of assets. Government-sponsored enterprise securities were about 10%, Treasuries about 6%, corporate bonds about 3%, and cash about 12%. The managers have no limit on how much goes to taxable or tax-exempt bonds, so the mix can change. To pay tax-exempt dividends, the fund must hold at least half its assets in tax-exempt securities at the end of each quarter.
Does HTAB pay monthly dividends?
Yes, HTAB pays distributions monthly. Over the 12 months to October 27, 2026, it paid about $0.73 per share, a trailing yield of 3.97%. Not all of that is necessarily tax-free. The fund can make both taxable and tax-exempt distributions. Muni interest is free of federal income tax but may still be subject to the alternative minimum tax or state income tax.
What's the difference between HTAB and VTEB?
VTEB is an index fund of municipal bonds that costs 0.03% a year. It had about $48.5 billion in assets and a 14.5-year average maturity. HTAB is actively managed, can also hold taxable bonds, and costs 0.39%. It had about $288 million in assets and a 21.2-year average maturity. Asset figures are as of July 31, 2026. HTAB returned -1.5% over one year and 4.9% a year over three years as of October 27, 2026. VTEB returned 0.1% and 4.4% as of October 30, 2026.
How much did HTAB lose in 2022?
HTAB lost 8.45% in 2022, according to its prospectus. That was its worst calendar year. Its worst quarter was the first quarter of 2022, at -5.67%. From its peak on January 4, 2022, to September 30, 2022, the price fell 12.3% as interest rates rose. It did not get back to its earlier high until August 2, 2024, about 22 months later.
What is HTAB's expense ratio?
HTAB's expense ratio is 0.39%, according to the prospectus filed November 26, 2025. That is the same as its management fee, with no fee waiver. Similar bond funds average about 0.13%, and VTEB and MUB charge 0.03% and 0.05%. In the SEC's standard example ($10,000 invested, 5% annual return), HTAB costs about $40 after one year, $125 after three, $219 after five and $493 after ten.