Welcome to Extreme Investor Network, where we bring you the latest insights and opportunities in the world of investing. Today, we are diving into the Hartford Total Return Bond ETF, a fund that is making waves in the sea of bond funds with its unique approach and impressive performance.
Managed by Campe Goodman, a fixed-income portfolio manager at Wellington, this actively managed exchange-traded fund (ETF) stands out by not only focusing on high quality but also by seeking the best ideas across all different parts of the fixed-income market. With a 30-day SEC yield of 4.92% and an adjusted expense ratio of 0.29%, this fund has caught the attention of investors looking for sustainable and reproducible returns long term.
Last year, the Hartford Total Return Bond ETF saw a total return of 7.15% and ranked in the 23rd percentile among its peers, according to Morningstar. This year, it is down about 1% so far but is outperforming its benchmark, the Bloomberg U.S. Aggregate Bond Index. With 51% of its assets in mortgage-backed securities and 25% in investment-grade credit, this fund leans towards securitized markets, setting it apart from its peers in the intermediate core plus bond category.
Goodman and his team of portfolio managers bring different perspectives to the table, utilizing resources across Wellington to find opportunities and achieve optimal risk-return perspective. With daily meetings and monthly sessions with specialists, they are constantly looking for new value across different sectors of the market.
One area where Goodman sees value is in agency mortgage-backed securities, structured finance, and subprime auto asset-backed securities. He also finds opportunities in Eastern Europe within emerging markets and in the upper end of the high-yield segment with BB-rated credit.
As for anticipating the Federal Reserve’s next move, Goodman mentions that the team would adjust the fund’s duration and credit risk based on the central bank’s actions. Whether it’s cutting rates due to conquering inflation or signaling a potential recession, the portfolio managers focus on setting up the fund for success in any scenario.
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