HEET — Hartford Schroders ESG US Equity ETF

HEET Fund Overview

HEET — Hartford Schroders ESG US Equity ETF is a US ETF managed by Hartford Funds Exchange-Traded Trust, categorised as United States Large Cap Blend / Core Thematic Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Hartford Funds Exchange-Traded Trust
• Category: United States Large Cap Blend / Core Thematic Equity
• Assets under management: $9.31M
• 1-year return: 2.7%
• Ticker: HEET
• SEC CIK: 0001501825
• SEC series ID: S000072686
• Share class ID: C000229121

HEET Investment Objective and Strategy

Hartford Schroders ESG US Equity ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Hartford Funds Exchange-Traded Trust.

Investment objective

The Fund seeks long-term capital appreciation.

Principal investment strategy

The Fund seeks to achieve its investment objective by investing in a diversified portfolio of equities and equity-related securities of U.S. companies. Under normal market conditions, the Fund will invest at least 80% of its assets in equity securities of companies organized in, located in or whose principal place of business is in the United States and at least 80% of its assets in investments that meet environmental, social or governance criteria (ESG) as identified by the Funds sub-advisers, Schroder Investment Management North America Inc. (SIMNA) and Schroder Investment Management North America Limited (SIMNA Ltd., together with SIMNA, the Sub-Advisers). The Fund will also select investments that provide exposure to factors such as, but not limited to Value, Profitability, Momentum, and Low Volatility.

The Fund will seek to achieve a better ESG profile compared to its benchmark, the Russell 1000 Index, by incorporating ESG characteristics into the stock selection process. The Fund does not generally invest in companies that are significantly involved in certain industries, product lines or services, including but not limited to, tobacco, weapons, tar sands, thermal coal and gambling, as determined from time to time by the Sub-Advisers. In determining whether a company is significantly involved in the industries, product lines or services listed above, the Sub-Advisers typically use revenue thresholds attributable to certain industries, product lines or services (e.g., companies that derive equal or more than 10% of revenues from thermal coal extraction) and categorical exclusions for other industries, product lines or services (e.g., controversial weapons).

These exclusionary criteria may be updated periodically by the Sub-Advisers to, among other things, add or remove certain industries, product lines or services from the screening process, revise the revenue thresholds and categorical exclusions applicable to such activities, or change particular industries, product lines or services from a categorical exclusion to a revenue threshold, or vice versa. The Fund may invest in securities of companies of any market capitalization although the Fund expects to focus its investments on large cap securities. Companies will be assessed simultaneously on ESG, Value, Profitability, Momentum and Low Volatility factors using a systematic and disciplined investment approach. The Sub-Advisers ESG criteria are designed to ensure that the portfolios overall ESG profile is higher than that of the Funds benchmark.

The Funds overall carbon intensity is expected to be at least 50% lower than that of the Funds benchmark, as determined by the Sub-Advisers. For purposes of determining which investments meet the Sub-Advisers ESG criteria, each company considered for inclusion will be assessed and monitored using a quantitative framework that includes environmental, social and governance measures. The Sub-Advisers will use their internally developed ESG scores to identify companies that, in their view, demonstrate sound or improving ESG practices. This includes companies that have an attractive ESG score based on the Sub-Advisers proprietary rating system and/or companies that the Sub-Advisers engage with to improve ESG practices. The Sub-Advisers ESG scores evaluate the risks and opportunities around issues such as climate change, environmental performance, labor standards or corporate governance, which are considered in the assessment of investments.

This assessment is supported by quantitative analysis from the Sub-Advisers proprietary ESG tools which provide detailed ESG analytics for each company. Environmental and social measures include, but are not limited to, the strength of environmental practices, climate change impact, responsible employment practices, and sensitivity towards the communities in which the companies operate. Governance measures include signals that seek to quantify the extent to which management teams act in the best interest of the principals or shareholders of the firm. Companies are considered to be good Value investments if they appear cheap based on selected fundamental measures. In assessing Profitability, the Sub-Advisers favor companies that they believe are in good financial health and generate strong earnings.

Companies that exhibit good Momentum are those that have experienced favorable recent performance relative to peers. Finally, companies are considered to be good Low Volatility investments if they appear to exhibit lower idiosyncratic volatility than average. The Sub-Advisers use portfolio optimization techniques to build what they believe to be the optimal portfolio for the Fund, taking into consideration anticipated transaction costs, liquidity and additional criteria to ensure that the Funds portfolio is broadly diversified across factors, stocks and sectors. Because the objective of the optimization is to maximize exposure to stocks with the highest overall factor scores, subject to the considerations highlighted above, a low score in a particular factor will not necessarily result in exclusion from the Funds portfolio but rather will contribute to the overall evaluation of that company.

The Sub-Advisers will regularly conduct a review of the Funds portfolio and rerun the optimization process to refresh the scores calculated for every stock in the investment universe and adjust portfolio weights as appropriate. The Fund will generally sell investments that have worse scores than at the prior portfolio review and buy stocks with improving scores.

HEET Performance

Total returns for HEET (as of 2026-10-01), from SEC filings.

HEET Risk Information

Risk metrics for HEET, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 20.2%

HEET Costs and Fees

HEET costs about $39 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.39%
• Gross expense ratio: 0.39%
• Portfolio turnover: 58%
• Brokerage commissions: 0.97 bps of average net assets (SEC N-CEN)

HEET Cashflows

Over the 12 months to 2023-04, Hartford Schroders ESG US Equity ETF had net inflows of $0, from monthly SEC N-PORT filings.

HEET Debt Constituents

No individual debt constituents are reported in Hartford Schroders ESG US Equity ETF's latest SEC N-PORT filing.

HEET Prospectus and SEC Filings

Official Hartford Schroders ESG US Equity ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2022-11-28
• Prospectus (485BPOS) — filed 2021-08-04
• Portfolio holdings (N-PORT) — filed 2023-06-27
• Portfolio holdings (N-PORT) — filed 2023-03-30
• Portfolio holdings (N-PORT) — filed 2022-12-27
• Annual census (N-CEN) — filed 2022-10-13

Related Funds

Other United States Large Cap Blend / Core Thematic Equity funds tracked on ABC INVEST:

• iShares MSCI USA ESG Optimized ETF (ESGU)
• Vanguard ESG U.s. Stock ETF (ESGV)
• Putnam Sustainable Leaders Fund (PNOPX)
• Fidelity U.S. Sustainability Index Fund (FITLX)
• iShares ESG MSCI KLD 400 ETF (DSI)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.