Hartford Funds, begun trading a new Smart-Beta US REITs ETF, the Lattice Real Estate Strategy ETF (NYSE Arca: RORE) on Tuesday, October 04, 2016. Here is a synopsis of the new ETF:
|Symbol: RORE||Exchange: NYSE Arca|
|Name: Lattice Real Estate Strategy ETF||Net Expense Ratio: 0.45%|
The Lattice Real Estate Strategy ETF seeks to provide investment results that, before fees and expenses, correspond to the total return performance of Lattice Risk-Optimized Real Estate Strategy Index.
The Lattice Risk-Optimized Real Estate Strategy Index is designed to address the risks and opportunities of investing within the U.S. REIT universe by selecting equity securities of REITs exhibiting a favorable combination of factor characteristics, including valuation, momentum, and quality.
The Index is built with a rules-based, proprietary methodology which employs a multi-layered risk-controlled approach that seeks to address the Strategy’s active risks versus the cap-weighted universe. Specifically, the Index seeks to select companies exhibiting attractive risk premia profiles while managing overall volatility levels and active risks. The Index’s components are risk- and factor-adjusted twice annually, with reconstitution and rebalance occurring in March and September. The Index was established with a base value of 1000 on December 31, 2015.
The components of the Index, and the degree to which these components represent certain industries, may change over time. Risk-Optimized refers to the approach Lattice takes in the development and management of its strategy indexes. Each strategy index developed by Lattice seeks to address identified risks, within each asset class. For example, country, company, and currency concentrations, valuation insensitivity, and other unmanaged risk factors may be addressed through the index management process. Risk-optimized does not mean “lower risk” in all cases, but rather refers to the deliberate and intentional re-allocation of specific risks.
Indexing may eliminate the chance that the Fund will substantially outperform the Index but also may reduce some of the risks of active management, such as over concentration. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies.
Top Consituents (11/10/16):
|SUNSTONE HOTEL INVESTORS INC REIT||2.08%|
|AGREE REALTY CORP REIT||2.06%|
|SUMMIT HOTEL PROPERTIES INC REIT||2.06%|
|CORPORATE OFFICE PROPERTIES REIT||2.06%|
|GAMING AND LEISURE PROPERTIE REIT||2.05%|
|XENIA HOTELS + RESORTS INC REIT||2.04%|
|GETTY REALTY CORP REIT||2.04%|
|RYMAN HOSPITALITY PROPERTIES REIT||2.04%|
|KILROY REALTY CORP REIT||2.04%|
RORE Home Page
Category: Real Estate> Regions> USA> US Broad R.E.
Here is a comment from Darek Wojnar, Head of Exchange-Traded Funds at Hartford Funds:
“The launch of RORE is a natural extension of Hartford Funds’ strategic beta ETF platform. The strategy focuses exclusively on REITs and may be a compelling solution for investors interested in taking advantage of the growing opportunities in the real estate sector.”