Hartford Multifactor Low Volatility International Equity ETF (LVIN)
BATS · ClosedEndIndexFund · CUSIP 518416607
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Security Profile

Security Type
Index ETF
CUSIP
518416607
Market Cap
Micro Cap · $2 Million
IPO
5/10/2017
Fund Description: Hartford Multifactor Low Volatility International Equity ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Lattice Strategies Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The Hartford Multifactor Low Volatility International Equity ETF seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the Hartford Multifactor Low Volatility International Equity Index. INDEX DESCRIPTION: The Hartford Multifactor Low Volatility International Equity Index is designed to outperform a capitalization-weighted universe of developed and emerging markets located outside the U.S. with up to one quarter less volatility over a complete market cycle. The Index methodology seeks to construct a portfolio comprised of equity securities with low volatility characteristics, while seeking to account for potentially uncontrolled risks that may result from a singular emphasis on low volatility stocks. The Index methodology first selects equity securities with low volatility characteristics from a broad universe of equity securities in developed (excluding the U.S.) and emerging economies. Each equity security must be within the top 85 percent of the applicable country’s market capitalization with an average daily trading volume with an equivalent value to $1 million. The composition of the Index is further refined by an optimization process that seeks diversification by applying minimum and maximum weightings of equity securities across a variety of measures, including country, sector,, company, size, and other factors. The optimization process also seeks to avoid unintended factor risks by maintaining neutral to positive exposure to other potentially return-enhancing factors such as value, momentum, and quality at the portfolio level. The Index seeks to balance risk across sectors by utilizing expected tail loss estimations, which is a process that seeks to assign weights so that each sector contributes equal risk to the overall portfolio versus having significant concentrations in particular sectors. The Index components are risk- and factor-adjusted twice annually. FUND STRATEGY: A passive or indexing approach is used to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to beat the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the Fund will substantially outperform the Index but also may reduce some of the risks of active management, such as over concentration. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies. The Fund generally invests at least 80 percent of its assets in the equity securities that are components of the Index and in depositary receipts (such as American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs) and European Depositary Receipts (EDRs) representing securities of the Index. The Fund may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, including money market funds, as well as in securities not included in the Index, but which the adviser believes will help the Fund track the Index. The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received) in accordance with the Fund’s securities lending program and guidelines. FUND MANAGEMENT: Lattice Strategies LLC serves as the investment adviser to the Fund. Mellon Capital Management Corp. serves as the sub-adviser to the Fund.

Company Contact

Headquarters
101 Montgomery Street, 27th Floor, San Francisco, CA 94104
Phone
415-508-3400
Fax
415-598-5102
Investor Relations
415-315-6600
SEC EDGAR Filings
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