Drawing on the expertise of Wellington Management, the fund invests by analyzing the relative value among U.S. and global debt sectors. Rather than simply tracking an index, its core approach is to allocate assets strategically to sectors that offer superior risk-adjusted returns.

It suits investors who want to avoid the risk of any single bond sector and are seeking diversification across the global bond market along with stable monthly dividend income.

Hartford launched the ETF in 2021, and it is actively managed.

Regardless of credit rating, the fund flexibly adjusts its allocation from investment grade to high yield. By combining a variety of instruments such as corporate bonds, asset-backed securities (ABS), and mortgage-backed securities (MBS), it aims to maximize income.

• Global multi-sector asset allocation
• Active management of credit and interest rate risk

Assets under management (AUM) stand at $1.2B, and the expense ratio is 0.49% per year.

Its management fee is higher than that of low-cost index funds such as BNDX and IUSB listed in the table, but investors can expect active sector selection and risk management from a professional management team.

Performance is driven by changes in global interest rates and credit spreads, and when a high-rate environment persists, the coupon income from the bonds it holds helps support the fund's returns.

Inflows from pension-type money seeking stable income have been steady, and during periods of heightened bond market volatility, the fund tends to be favored by investors who want professional management.

The fund provides stable income by diversifying across a wide range of bond assets, but it carries the risk of losses if global economic conditions weaken or credit markets contract.

BNDX (international bonds) and IUSB (broad bond market), both shown in the table, can serve as passive alternatives. For more aggressive active income, BINC and PYLD are direct competitors, and JCPB, from a traditional bond powerhouse, can also be an alternative. If you prefer high income in the form of closed-end funds (CEFs), it is reasonable to consider products such as PTY and PDI as well.

These are the key items to review before investing in HFSI. As an actively managed bond fund, it requires an investment decision based on a comprehensive analysis of the manager's strategy and the current market environment.

Investors should be fully aware that during a broad cooling of credit markets or a global recession, the value of the high-yield bond assets held could fall sharply and result in a loss of principal.

It is a strategic product suited to investors who want to capture stable income and investment opportunities in the global bond market at the same time. It is highly useful as a supplementary asset that enhances a portfolio's returns.