Hartford Funds has debuted the Hartford Short Duration ETF (HSRT), an actively managed fund sub-advised by Wellington Management that invests mainly in investment-grade securities, but can also invest in bank loans and non-investment grade fixed-income securities.
HSRT will use derivatives such as Treasury futures and interest rate swaps to manage its interest rate risk and duration, while maintaining a dollar-weighted average duration of less than three years.
Duration measures a bond's sensitivity to changes in interest rates. Typically, the longer a bond has until maturity, the more its price will fluctuate as interest rates change.
HSRT’s expense ratio is 0.29%. The fund's portfolio manager is Timothy Smith, Wellington’s senior managing director and fixed-income portfolio manager.
Hartford Funds’ ETF lineup now includes six active fixed-income and seven strategic beta products.