Hartford Multifactor US Equity ETF

Hartford Multifactor US Equity ETF (ROUS) is an index fund that holds about 322 large US companies. It tracks the Hartford Multifactor Large Cap Index, which favors stocks with value, momentum and quality traits. The index also aims for up to 15% less volatility than a size-weighted portfolio over a full market cycle. Its 0.19% expense ratio is below the 0.23% average of similar funds. As of July 31, 2026, its top 10 holdings made up only 12% of assets.

• Over the year to Oct 27, 2026, ROUS returned +20.1%, 2nd of 9 among similar funds.
• Its 5-year annualized return was +12.5% and its 10-year +13.1%.
• In the 2020 COVID crash it fell 35.4% and regained its old high 8.3 months after the low.
• Its worst full calendar year was 2022 (-9.7%); its best was 2021 (+27.3%).
• The deepest fall in its price history was 35.5% (Feb 14, 2020 to Mar 23, 2020), recovered by Dec 1, 2020.

As of Jul 31, 2026, the fund held 322 securities; the ten largest made up 12.02% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $87.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.40%, +2.01%, -0.92%.

ROUS tracks the Hartford Multifactor Large Cap Index (LROLCX). The index was built by Lattice Strategies LLC, the fund's adviser, and is calculated by Solactive AG. It starts with the 1,000 largest US companies by free-float market value, meaning the value of shares available to trade. A rules-based optimizer, which is software that balances several goals at once, then picks and weights typically 300 to 400 stocks. It looks for value (cheap relative to fundamentals), momentum (recent price strength) and quality (sturdy finances). It also applies sector and size limits and aims for up to 15% less volatility than a size-weighted version over a full market cycle.

The index is rebuilt and rebalanced twice a year, in March and September. Because weights don't follow company size, no stock dominates. As of July 31, 2026, the largest positions were Seagate Technology (1.47%), Alphabet (1.40%), Fortinet (1.37%) and Cisco Systems (1.33%). Apple was under 1%.

The fund is passive. It doesn't try to beat its index, and it doesn't move to cash when markets look shaky. It keeps at least 80% of its assets in index stocks. The prospectus reports portfolio turnover of 26%. The fund uses no leverage and no options strategy.

• ROUS charges 0.19% a year, versus an average of 0.23% for the similar funds below (5th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $19 in the first year and $243 over 10 years (assuming a 5% annual return).

It offers broad, low-cost exposure to about 322 large US companies, with a tilt toward value, momentum and quality rather than a narrow bet.

ROUS could serve as a main US stock holding that leans toward cheaper, sturdier companies. Its one-year beta of 0.74 as of October 27, 2026 means it moved less than the overall market over that span. Still, it has not been spared in crashes. It fell 35.4% in the 2020 COVID crash and took about eight months to recover. In the 2022 bear market it dropped 18.9% from peak to trough and needed 14 months to get back. Its worst calendar year in the prospectus was 2022, at −9.45%. Anyone taking withdrawals during a slump like those could be cashing out shares at low prices.

Income is modest: the trailing yield was 1.28% as of October 27, 2026, paid quarterly. Costs are low. Under the SEC's standard example, $10,000 would cost $19 in the first year and $243 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.