Hartford Longevity Economy ETF (HLGE)
AI Summary
The Hartford Longevity Economy ETF seeks to track the Hartford Longevity Economy Index, which is designed to generate attractive risk-adjusted returns by investing in companies that are expected to benefit from the growth of the aging population and its substantial buying power.
The index focuses on industries and themes related to the longevity economy, such as aging in place, working longer, health and wellness, social connections, financial freedom, mobility, and leisure. It employs a rules-based, multi-factor methodology that considers valuation, momentum, and quality factors, while managing risks like liquidity and volatility.
The ETF takes a passive, indexing approach to track the index’s performance, investing at least 80% of its assets in the index’s components. It aims to provide exposure to the longevity economy trend while seeking lower costs and portfolio turnover compared to active management.
Strategy Narrative (Prospectus)
The Fund seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the Hartford Longevity Economy Index (LHLGEX) (the Index), which is designed to generate attractive risk-adjusted returns by investing in companies that comprise industries that reflect certain themes that are expected to benefit from the growth of the aging population and the substantial buying power it represents. The starting longevity economy universe is comprised of industries that the investment adviser believes are most likely to benefit from the growth in longevity economy thematic investing. The Fund seeks to invest in those industries that the investment adviser believes may benefit from providing the goods and services that reflect the longevity economy themes identified by the investment adviser. These longevity economy themes include, but are not limited to, aging in place/home modification, working longer/private education, performance health and comfort, wellbeing, maintaining social connections, financial freedom, staying mobile, human enhancement and leisure and entertainment. These themes may change from time to time as the needs and preferences of the aging populations develop. The Fund may invest in issuers of any market capitalization although the Fund will generally invest in issuers with large market capitalizations. The Index seeks to address risks and opportunities within the U.S. longevity economy universe by selecting equity securities of companies exhibiting a favorable combination of factor characteristics, including valuation, momentum, and quality. The Index seeks to outperform a capitalization-weighted universe of U.S. large capitalization equity securities, as represented by the Russell 3000 Index, over a complete market cycle.The Index is built with a rules-based, proprietary methodology, which employs a multi-layered risk-controlled approach that seeks to address active risks versus the cap-weighted universe, accounting for liquidity and volatility risks. The Indexs components are selected based on these factors and each components inclusion in one of the industries that reflect the Funds longevity economy themes. The Indexs components are risk- and factor-adjusted twice annually, with reconstitution and rebalance occurring in March and September. The Index was established on December 31, 2020. The components of the Index may range from 300 to 400, and the degree to which these components represent certain industries, may change over time. The industry weightings within the Index are based on Lattice Strategies LLCs (Lattice or the Adviser) level of conviction that a given industry will benefit from the Funds longevity economy themes. The Index, developed by the Adviser, seeks to address identified risks within its asset class. For example, country, company, and currency concentrations, valuation insensitivity, and other unmanaged risk factors may be addressed through the index management process.The Adviser uses a passive or indexing approach to try to achieve the Funds investment objective. The Fund does not try to beat the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the Fund will substantially outperform the Index but may also reduce some of the risks of active management, such as over concentration in countries and individual equities. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies.The Fund generally invests at least 80% of its assets in securities included in the Index and in depositary receipts representing securities included in the Index. The Fund may invest the remainder of its assets in certain derivative instruments that may not be included in the Index, cash and cash equivalents, including money market funds, as well as in securities that are not included in the Index but that the sub-adviser believes will help the Fund track the Index. To the extent that the Index concentrates (i.e., holds 25% or more of its total assets) in the securities of a particular industry or group of industries, the Fund will do so in approximately the same amount as the Index.The Index is sponsored by Lattice. Lattice determines the composition and relative weightings of the securities in the Index and publishes information regarding the market value of the Index. The Index is the property of Lattice, which has contracted with S&P Opco LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third-party licensors and none of those parties will be liable for any errors or omissions in calculating the Index. Additional information on the Index can be found at hartfordfunds.com.