The Hartford Municipal Opportunities ETF outperformed the Bloomberg Municipal Bond 1-15 Year Blend (1-17) Index during the quarter. Allocation and security selection within investment-grade port, airport, marina, industrial development, and housing sectors contributed to relative returns during the period. Duration and yield-curve positioning detracted from benchmark-relative returns as the Hartford Municipal Opportunities ETF was overweight longer maturities while municipal yields rose in that segment.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 4,598 | $177,859.91 | $179,590.98 | $1,731.07 | 0.97% |
Jeffery Yorg Focus Partners Advisor Solutions LLC | 5,681 | $220,081.94 | $221,729.43 | $1,647.49 | 0.75% |
Matthew Liebman Amplius Wealth Advisors LLC | 11,298 | $439,848.36 | $440,170.08 | $321.72 | 0.07% |
| MTW Masso Torrence Wealth Management Inc. Masso Torrence Wealth Management Inc. | 26,540 | $1.04M | $1.04M | -$5,661.75 | -0.54% |
| BPF Barnes Pettey Financial Advisors LLC Barnes Pettey Financial Advisors LLC | 14,085 | $550,817.36 | $549,807.97 | -$1,009.39 | -0.18% |
| ARCA Exchange | US Country |
The fund described specializes in a targeted investment strategy focusing on municipal securities. By allocating its resources primarily to investment grade and non-investment grade municipal securities, often referred to as "junk bonds," the fund aims to achieve an attractive yield for its investors while also considering the total return. Ensuring a diversified and balanced portfolio, the fund mandates that a minimum of 80% of its net assets are invested in municipal securities. In pursuit of higher yields, it also permits up to 35% of its net assets to be allocated towards non-investment grade municipal securities. The fund's investment approach is flexible regarding the maturity or duration of the securities in which it invests, allowing it to adapt to changing market conditions and to optimize investment opportunities.
These are high-quality bonds issued by municipalities that are generally considered to offer a lower risk of default. The fund allocates the majority of its assets to these securities, aiming to provide a stable and consistent income to its investors through interest payments that are often exempt from federal taxes, and in some cases, state and local taxes as well.
The fund invests up to 35% of its net assets in these higher-yield, higher-risk securities. Non-investment grade municipal securities offer the potential for higher returns compared to investment grade securities but come with an increased risk of default. This segment of the fund's portfolio is targeted at investors who are willing to tolerate a higher level of risk for the chance of achieving greater yields.
This fund does not restrict its investments to securities of a specific maturity or duration, providing it with the flexibility to respond to changing market conditions and interest rates. This approach allows the fund to pursue opportunities that align with its yield and total return objectives across the entire municipal bond market, encompassing short, intermediate, and long-term securities.