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華爾街日報S&P 500 Power Meets Income Edge In Hartford's Latest ETF
Hartford Funds just launched its first stock-and-options income strategy ETF, as investors continue to demand products that provide equity exposure while offering more stable cash flow.
As part of this strategy, last week, Hartford Funds launched the Hartford Equity Premium Income ETF (BATS:HEMI) which combines an actively managed exposure to the U.S. equity market with a systematic short S&P 500 Index equity call writing strategy. The ETF aims to provide investors with consistent income in a tax-efficient manner while allowing for some capital gains.
The portfolio takes a dual approach for HEMI. For equity, managers build well-researched diversified portfolios of U.S. stocks focusing on companies with improving business momentum, strong quality characteristics, and positive business fundamentals. For derivatives, it uses a systematic approach: selling out-of-the-money call options on either the SPDR S&P 500 ETF Trust or the S&P 500 Index to generate option premiums.
Income is expected to come from both call premiums and equity dividends, and the strategy incorporates tax-aware techniques to limit capital gains exposure within the portfolio.
Brian Kraus, head of product development at Hartford Funds, said the ETF reflects growing investor interest in active, outcome-oriented strategies. He noted that HEMI is designed to balance yield generation with equity growth potential, while also addressing tax efficiency, three factors increasingly at the top of mind for advisors and clients.
Wellington's Christina Kopec Rooney, head of U.S. wealth, highlighted the long-standing partnership between the firms and their shared focus on developing ETF-based solutions tailored to advisor needs.
In short, HEMI offers investors a familiar equity base, plus an options-powered income engine bolted on for smoother cash flow.
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