Is Hartford Multifactor Developed Markets (ex-US) ETF (RODM) Currently a Top ETF Choice?

Overview of the Hartford Multifactor Developed Markets (ex-US) ETF (RODM)

Launched on February 25, 2015, the Hartford Multifactor Developed Markets (ex-US) ETF (RODM) is a smart beta exchange-traded fund that targets the Foreign Large Value ETF sector, providing investors with broad international exposure outside the United States.

Understanding Smart Beta ETFs

Traditionally, most ETFs have been constructed to follow market capitalization-weighted indexes, which are designed to mirror the performance of the overall market or specific segments. These cap-weighted indexes are popular for their low fees, transparency, and ease of use, making them a solid choice for those who believe in efficient markets.

However, some investors seek to outperform the market through strategic stock selection. For these individuals, smart beta funds—which use alternative, non-market cap weighting strategies—may be appealing. These strategies select stocks based on specific fundamental factors or a blend of such criteria, aiming to enhance risk-adjusted returns.

Smart beta methodologies include approaches like equal weighting, fundamental weighting, and weighting based on volatility or momentum. While these strategies offer investors various options, not all guarantee superior performance.

About the Fund and Its Index

Hartfordfunds is the sponsor behind this ETF, which has accumulated more than $1.44 billion in assets, making it one of the larger funds in its category. RODM aims to replicate the performance of the Hartford Risk-Optimized Multifactor Developed Markets (ex-US) Index before fees and expenses are deducted.

This index is designed to reduce concentration risks related to countries, currencies, and individual companies within developed markets outside the United States.

Fees and Expenses

When evaluating ETFs, it's important to consider the expense ratio, as lower costs can lead to better net returns if all other factors are equal. RODM has an annual operating expense ratio of 0.29%, positioning it among the more cost-effective choices in its segment.

The fund currently offers a trailing 12-month dividend yield of 2.86%.

Portfolio Composition and Major Holdings

Although ETFs generally provide diversification and help reduce the risk associated with individual stocks, it's still wise to review the fund's specific holdings. Most ETFs, including RODM, are transparent and disclose their portfolios daily.

Among its largest positions, Nokia Corp Spon Adr Adr (NOK) represents about 1.37% of the fund's assets, followed by Engie Common Stock Eur1.0 (ENGI) and Gsk Plc Spon Adr Adr (GSK). The top ten holdings collectively account for approximately 11.33% of the fund’s total assets.

Performance and Risk Profile

So far this year, RODM has returned around 8.75%, and over the past twelve months (as of March 5, 2026), it has gained roughly 34.92%. During the last 52 weeks, the ETF has traded between $28.23 and $41.11.

With a beta of 0.67 and a standard deviation of 11.65% over the previous three years, RODM is considered a moderate-risk investment. The fund holds about 340 different securities, providing substantial diversification and reducing company-specific risk.

Other Options to Consider

RODM is a solid choice for those aiming to outperform the Foreign Large Value ETF segment, but there are alternative funds worth considering. For example, the Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI) tracks the FTSE All-World ex US High Dividend Yield Index, while the Schwab Fundamental International Equity ETF (FNDF) follows the Russell RAFI Developed ex US Large Co. Index (Net).

VYMI manages $17.36 billion in assets and has an expense ratio of 0.07%, whereas FNDF holds $22.26 billion and charges 0.25%. Investors seeking lower costs and reduced risk may prefer traditional market cap-weighted ETFs that aim to match the performance of the Foreign Large Value ETF category.

Conclusion

If you want to explore more about this ETF or other similar products, consider using screening tools to find funds that align with your investment goals. For further insights and the latest news in ETF investing, visit the ETF Center.

Enhance Your Investment Strategy with Expert ETF Analysis

Subscribe to Zacks' exclusive Fund Newsletter for weekly updates, expert analysis, and top-performing ETF recommendations delivered directly to your inbox.

This valuable resource is available at no cost—don’t miss out!

Looking for the latest picks from Zacks Investment Research? Download their report, "7 Best Stocks for the Next 30 Days," for free today.