Hartford Financial's (HIG) Unit Launches Commodity-Focused ETF

·2 min read

The Hartford Financial Services Group, Inc.’s HIG subsidiary Hartford Funds recently launched the first commodity-focused exchange-traded fund (“ETF”), Hartford Schroders Commodity Strategy ETF (HCOM). It will be sub-advised by Schroder Investment Management North America Inc. and Schroder Investment Management North America Ltd.

Hartford Funds, a leading asset manager, is part of Hartford Financial and provides mutual funds, ETFs and college savings plans.

HCOM seeks long-term return by investing in an array of commodity-related instruments. Apart from a range of energy, metals and crop futures and swaps, HCOM might invest in structured notes, debt securities, convertible securities and foreign currency.

HCOM ETF allows access to alternative asset classes for clients, which is suitable for the current market environment.

This new launch reflects the company’s commitment to provide diverse, long-term investing opportunities. The move also comes at an opportune time as prices are high in the market. With the economy gradually recovering from pandemic-induced slump, the demand for products has been rising, thus leading to high prices.

As of Jun 30, 2021, Hartford Funds’ investment advisory business had approximately $153.8 billion in discretionary and non-discretionary assets under management. In the second quarter, Hartford Funds reported operating revenues of $298 million, up 26.3% year over year. Core earnings of the segment surged 55% year over year to $51 million, courtesy of growth in daily average Hartford Funds assets under management (AUM).

The subsidiary’s initiatives are expected to drive the parent company’s revenues.

Shares of Hartford Financial soared 93.1% in a year’s time, compared with the industry’s growth of 44.5%. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some better-ranked stocks in the same space are Chubb Limited CB, CNO Financial Group, Inc. CNO and American International Group, Inc. AIG, each carrying a Zacks Rank #2 (Buy).

Chubb, CNO Financial and American International have a trailing four-quarter earnings surprise of 7.14%, 26.12% and 15.09%, on average, respectively.

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The Hartford Financial Services Group, Inc. (HIG) : Free Stock Analysis Report

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Chubb Limited (CB) : Free Stock Analysis Report

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