Hartford Funds Launches Its First Options Overlay Strategy, Hartford Equity Premium Income ETF (HEMI)

The actively managed ETF combines the expertise of Wellington Management’s Core Equity and Global Derivatives teams for income-seeking investors

WAYNE, Pa.–(BUSINESS WIRE)–Hartford Funds, a leading asset manager, today announced the launch of Hartford Equity Premium Income ETF (Cboe: HEMI), which combines a core U.S. equity portfolio with call options overlay tied to the S&P 500. HEMI seeks to generate current income in a tax efficient manner while maintaining the potential for capital appreciation. The ETF is sub-advised by Wellington Management Company LLP and managed by Wellington Management’s seasoned Core Equity and Global Derivatives teams.

“Active ETFs are capturing a larger share of total ETF flows, and outcome-oriented strategies are in high demand,” said Brian Kraus, Head of Product Development at Hartford Funds. “HEMI reflects our commitment to meeting client needs through innovative solutions. We’re thrilled to collaborate once again with our strategic partner Wellington Management to launch a product that we feel can offer investors a compelling blend of yield, equity growth potential, and tax efficiency.”

HEMI will target attractive and predictable income through a combination of written call options premiums and equity dividends, and seeks to achieve its objective by pursuing a two-pronged investment strategy:

1. Creating an actively managed portfolio comprised primarily of U.S. stocks. The portfolio management team will use fundamental research designed to identify companies with improving quality metrics, business momentum, and attractive relative valuations.
2. Selling call options on the SPDR S&P 500 ETF Trust or on the S&P 500 Index. The fund will systemically sell out-of-the-money call option contracts, with an objective of generating incremental income.

HEMI also seeks to minimize exposure to capital gains taxes and may incorporate certain tax optimization strategies within the equity portfolio.

“We remain dedicated to developing innovative investment solutions, with a particular focus on the advantages of ETFs,” said Christina Kopec Rooney, Head of US Wealth at Wellington Management. “Our extensive, ongoing collaboration with Hartford Funds underscores Wellington’s commitment to building strong partnerships that deliver long-term value and prioritize the needs of financial advisors and their clients.”

The portfolio management team for HEMI includes Douglas W. McLane, CFA, and Gordon R. Lawrence, CFA, both Senior Managing Directors at Wellington Management. Mr. McLane is an equity portfolio manager and team leader on the Disciplined Equity Team. He currently manages U.S. large cap and large cap growth approaches, and serves as a portfolio manager for the Hartford Core Equity Fund. Mr. Lawrence is the director of Wellington’s Global Derivatives Group, where he identifies opportunities for managers to use derivatives to express portfolio views, manage risk, and reduce transaction costs across equity, credit, commodity, and currency markets. He also manages derivatives overlay portfolios, focusing on both hedging and return generation.

Listed on Cboe, HEMI will use the S&P 500 Index as its benchmark. For more information about HEMI, or to learn more about Hartford Funds’ active ETF suite, please visit hartfordfunds.com.

About Hartford Funds

Hartford Funds offers mutual funds, ETFs and 529 college savings plans built for diverse client needs. Through the firm’s systematic capabilities and deep, strategic relationships with our active management sub-advisers, Wellington Management and Schroders – two of the largest and longest-standing institutional investors in the world – Hartford Funds is committed to designing an investment platform clients can trust. The firm’s comprehensive product suite comprises actively managed strategies, including fixed income, equity and multi-strategy options, as well as a line-up of systematic ETFs that leverage a proprietary risk-optimized indexing approach. Beyond investments, Hartford Funds has partnerships with institutions like the MIT AgeLab and other leading experts to help investors navigate longevity and enhance quality of life, while supporting financial professionals as they deepen relationships with clients.

Excluding affiliated funds of funds, as of September 30, 2025, Hartford Funds’ investment advisory business had approximately $152.3 billion in discretionary and non-discretionary assets under management. For more information about our investment family, visit www.hartfordfunds.com.

About Wellington Management

Wellington Management is one of the world’s largest independent investment management firms, serving as a trusted adviser to over 2,500 clients in more than 60 countries. The firm manages more than US$1.3 trillion, as of 30 September 2025, for pensions, endowments and foundations, insurers, family offices, fund sponsors, global wealth managers, and other clients. Wellington aspires to provide excellent service to clients through a unique combination of independence enabled by its distinctive private partnership model, diverse perspectives through its unified, multi-asset investment platform, and relentless curiosity and intellectual rigor fostered by its enduring collaborative culture.

HIG-W

Some of the statements in this release may be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. We caution investors that these forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ. These important risks and uncertainties include those discussed in The Hartford’s Quarterly Reports on Form 10-Q, our 2024 Annual Report on Form 10-K and the other filings The Hartford makes with the Securities and Exchange Commission. We assume no obligation to update this release, which speaks as of the date issued.

From time to time, The Hartford may use its website to disseminate material company information. Financial and other important information regarding The Hartford is routinely accessible through and posted on our website at http://ir.thehartford.com. In addition, you may automatically receive email alerts and other information about The Hartford when you enroll your email address by visiting the “Email Alerts” section at http://ir.thehartford.com

ETFs are not mutual funds. Unlike traditional open-ended mutual funds, ETF shares are bought and sold in the secondary market through a stockbroker. ETFs trade on major stock exchanges and their prices will fluctuate throughout the day. Both ETFs and mutual funds are subject to risk and volatility.

The Fund is new and has a limited operating history. Investing involves risk, including the possible loss of principal. Security prices of the Fund’s underlying holdings will fluctuate in value depending on general market and economic conditions and the prospects of individual companies. The market price of the Fund’s shares will fluctuate in response to changes in the Fund’s net asset value, intraday value of the Fund’s holdings, and the supply and demand for shares on the exchange. ● The Fund is actively managed and does not seek to replicate the performance of a specified index. ● The Fund sells (writes) options contracts on an underlying ETF and/or underlying index and is subject to the risks associated with writing (selling) call options, which include the risk that the Fund may be required to sell an underlying security at a disadvantageous price or below the market price of such underlying security, at the time the option is exercised. During the life of a written call option, the Fund forgoes the opportunity to participate in increases in the market value of the underlying security or instrument covering the option above the sum of the premium and the exercise price, potentially causing underperformance in rising markets, but retains the risk of loss should the price of the underlying security or instrument decline. The use of call options could increase the volatility of the Fund’s returns and may increase the risk of loss to the Fund. These types of transactions generally result in certain tax consequences to the Fund, including a return of capital to shareholders. ● The Fund may trade FLEX options, which are subject to additional risks including the risk that the value of the FLEX options may not correlate to the NAV of the option’s underlying ETF and/or an underlying index and such options may expire with little or no value. In addition, the Fund may suffer significant losses if the Options Clearing Corporation on which the FLEX options trades are settled is unable or unwilling to perform its obligations. ● Derivatives are generally more volatile and sensitive to changes in market or economic conditions than other securities; their risks include currency, leverage, liquidity, index, pricing, valuation, and counterparty risk. ● The securities of large market capitalization companies may underperform other segments of the market. ● Because the Fund is non-diversified, it may invest in a smaller number of issuers, and may be more exposed to risks and volatility than a more broadly diversified fund. ● The Fund may effect creations and redemptions partly or wholly for cash, rather than in-kind, which may make the Fund less tax-efficient and incur more fees than an ETF that primarily or wholly effects creations and redemptions in-kind.

Investors should carefully consider a fund’s investment objectives, risks, charges and expenses. This and other important information is contained in the fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.

ETFs are distributed by ALPS Distributors, Inc. (ALPS). Advisory services are provided by Hartford Funds Management Company, LLC (HFMC). Certain funds are sub-advised by Wellington Management Company LLP. HFMC and Wellington Management are SEC registered investment advisers. Hartford Funds refers to Hartford Funds Distributors, LLC, Member FINRA, and HFMC, which are not affiliated with any sub-adviser or ALPS.

Contacts

Media Contact:

Kourtnaye Lewis

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