Hartford Funds just rolled out its first stock-and-options income ETF, joining the parade of asset managers trying to give investors what they're increasingly asking for: equity exposure with a smoother income stream attached.
The Hartford Equity Premium Income ETF (HEMI) takes a two-part approach. On the equity side, portfolio managers actively select U.S. stocks, focusing on companies with improving business momentum, strong quality characteristics, and solid fundamentals. On the derivatives side, the fund systematically sells out-of-the-money call options on either the SPDR S&P 500 ETF Trust or the S&P 500 Index itself to collect option premiums.
The result? Income flows from two sources: those call premiums and dividends from the underlying stocks. The strategy also incorporates tax-aware portfolio management techniques designed to minimize capital gains exposure, which matters plenty if you're in a high tax bracket.
Brian Kraus, head of product development at Hartford Funds, said the ETF reflects what advisors and their clients are prioritizing right now: yield generation, equity growth potential, and tax efficiency. Those three boxes are getting checked a lot these days in product development meetings.
Christina Kopec Rooney, head of U.S. wealth at Wellington, pointed to the long partnership between the firms and their shared commitment to building ETF solutions that address what advisors actually need.
Think of HEMI as a familiar equity portfolio with an options-powered income generator bolted on for more predictable cash flow. It's active management where it counts, systematic execution where it makes sense, and tax awareness baked throughout.
