Hartford Strategic Income ETF

HFSI

Market cap $1.07B

The Hartford Strategic Income ETF continues to deliver strong risk-adjusted returns, outperforming treasuries and peers with low volatility. HFSI employs a barbell credit strategy, balancing high-quality AAA/AA assets with significant BB/B exposure, providing a natural hedge during credit spread blow-ups. Assets under management have grown nearly five-fold to almost $1 billion, reflecting market confidence in HFSI's active management and intermediate duration focus.

The Hartford Strategic Income ETF outperformed the Bloomberg US Aggregate Bond Index during the period, helped by further spread tightening across most fixed-income sectors. The Fund's positioning in high yield had the biggest positive impact on performance overall while exposure to bank loans also contributed favorably. The Fund's select exposure to emerging markets debt, including corporates and sovereigns, had a favorable impact on performance.

Hartford Strategic Income ETF delivers a 6% yield via an actively managed, globally diversified bond portfolio. The fund's portfolio features 80% U.S. debt, 53% investment grade, and a weighted average duration of 5.72 years. HFSI has outperformed both the U.S. bond benchmark ("BND") since its inception and major active ETF peers over 2.5 years.

HFSI is a true multisector bond ETF, actively managed and currently overweight U.S. high yield and emerging market debt. The fund uses implied leverage via CDSs and bond futures, resulting in higher volatility but also leading total returns among peers. HFSI offers a 6% SEC yield with monthly payments, making it attractive for total return rather than just yield-focused investors.