ROUS ETF

Many investors may be surprised to see how concentrated their exposure to the broader market really is. While investing in the broader U.S. market – a collection of companies based on size — seems like it should offer balanced exposure, it may actually introduce significant concentration risk to portfolios.

Hartford Funds' defensive value ETF is rallying alongside the broader market, highlighting the power of a multifactor strategy. The recent rally of the Hartford Multifactor US Equity ETF (ROUS) demonstrates that it's possible to limit downside risk but maintain upside potential.

Major U.S. stock market benchmarks declined for the third consecutive month in October. U.S. equities struggled last month due to volatile and increasing bond yields, third-quarter earnings reports, and geopolitical conflict.

A multifactor ETF may be the solution for investors who want to maintain equity exposure but limit downside risk. As volatility picked up in global equities in October, investors should consider November could be another volatile month on Wall Street.

Hartford Funds' defensive value ETF is outpacing the benchmark as volatility in the market is on the rise. The Hartford Multifactor US Equity ETF (ROUS) is helping to mitigate losses in the growing volatility environment.

Growing volatility in U.S. equities is sending investors searching for ways to safeguard portfolio gains, such as allocating to a multifactor ETF. Volatility increased on global equity markets in the past month, as the VIX hit its highest in nearly seven months on Friday.

Many advisors expect market volatility to increase soon, creating uncertainty around how to capture gains while preparing for a recession. Advisors understand that even though the U.S. has not yet fallen into a recession, the economy is not out of the woods.

Tech stocks are lagging the broader market this month, signaling potential strength for value stocks. September to date, the technology sector is lagging the S&P 500 by the most for a month since November 2018, the Wall Street Journal reported.

Stocks have largely held steady over the past month, but the market saw higher volatility on Friday. The past month has seen very low volatility, at levels not seen since before the COVID-19 crash in 2020.