Hartford Funds says it has struck a deal to buy smart beta ETF provider Lattice Strategies.
The news comes one week after Columbia Threadneedle, part of Ameriprise Financial (AMP), announced that it is acquiring Emerging Global Advisors, a maker of smart beta portfolios focused on emerging markets.
BlackRock’s iShares business recently projected that smart beta ETF assets will reach $1 trillion globally by 2020 and $2.4 trillion by 2025.
“We are excited to acquire Lattice Strategies’ distinctive ETF offering and investment capabilities, which we foresee being increasingly demanded by financial professionals and their clients,” said Jim Davey, president of Hartford Funds, in a statement. “The strategic beta space is a natural extension of Hartford Funds’ actively managed platform, enabling us to enter a fast-growing category that will serve as a foundation for growth in the future.”
The acquisition is expected to close in the third quarter.
Lattice Strategies now sells strategic-beta ETFs that use a multi-factor approach to security selection and a “deliberate allocation of risk,” according to Hartford. Its current ETF lineup includes Lattice Developed Markets (ex-US) Strategy ETF (RODM), Lattice US Equity Strategy ETF (ROUS), Lattice Global Small Cap Strategy ETF (ROGS) and Lattice Emerging Markets Strategy ETF (ROAM).