Asset manager Hartford Funds announced today the launch of Hartford Schroders ESG US Equity ETF (HEET), the firm’s first ESG-focused exchange-traded fund. The ETF aims to achieve a better ESG profile compared to its benchmark, the Russell 1000 Index, while targeting long-term capital appreciation by investing in a portfolio of equities that are expected to meet ESG criteria.

The new ETF will be sub-advised by Schroder Investment Management North America. Schroders will identify the ESG criteria for the investments, and provide assessments based on factors including value, profitability, momentum, and volatility.

ESG measures assessed include the strength of environmental practices, climate change impact, and positive stakeholder relationships. Hartford Funds stated that HEET is designed to have less than half the carbon footprint of its benchmark.

Ashley Lester, PhD, Head of Systematic Investments at Schroders, will serve as the fund’s portfolio manager.

Vernon Meyer, Chief Investment Officer at Hartford Funds, said:

“The Hartford Schroders ESG US Equity ETF enables us to offer a flexible, cost-effective strategy that is designed to help investors achieve their long-term investment goals, while also having a positive influence on our world. We believe that applying ESG principles to an ETF, and leveraging Schroders’ quantitative investing expertise and proprietary approach to ESG investing, can provide stronger returns and make for a better investor experience on multiple levels.”

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