It is an actively managed bond ETF that holds tax-exempt municipal bonds alongside taxable bonds to improve after-tax returns. It actively adjusts the weights of municipal bonds, corporate bonds, and Treasuries with the investor's after-tax yield in mind.

It suits US taxable investors who want bond income that accounts for taxes and are willing to accept interest rate and credit risk.

It is an actively managed ETF run by Hartford.

The fund holds tax-exempt municipal bonds together with taxable bonds such as corporate bonds and Treasuries, and it actively adjusts the weights of the two areas to raise the investor's after-tax return. It is managed with the tax environment and the outlook for interest rates and credit in mind, but it is exposed to credit and interest rate risk, and its tax benefits are structured around the US tax system.

• Combination of municipal and taxable bonds
• Management aimed at improving after-tax returns

Assets under management (AUM) stand at $224.5M, and the Expense Ratio is 0.39% per year.

The main point of comparison is its tax-aware management, which aims to improve after-tax returns relative to general aggregate bond ETFs that are run without regard to taxes.

Tax-aware bonds are driven by interest rates, credit spreads, and tax policy. They tend to perform well when rates fall and weakly when rates rise or credit conditions deteriorate. Their weights are adjusted according to the relative appeal of municipal and taxable bonds.

Fund flows into tax-aware bonds diverge depending on the rate environment, tax policy, and demand for after-tax income, and money sometimes moves into this product category when demand for after-tax returns grows. It is also worth noting that performance varies with the interest rate and credit environment.

Improved after-tax returns are its strength, while interest rate risk, credit risk, and dependence on tax rules are points to consider.

For exposure to aggregate bonds run without regard to taxes, IUSB is a direct alternative, and for core plus bonds, products such as JCPB are also worth comparing. For actively managed multisector bonds, a product such as PYLD can be reviewed as well. The three products in the table, IUSB, JCPB, and PYLD, are all managed without separately improving tax efficiency, so they differ in lacking a tax-aware strategy, whereas this ETF's differentiator is management that improves after-tax returns.

Here are the points to review before investing in HTAB. Improved after-tax returns are attractive, but interest rate risk, credit risk, and dependence on tax rules should be confirmed in advance. It is also a good idea to compare it with aggregate bond products that are run without regard to taxes.

Rising rates and a deteriorating credit environment are the main short-term variables, and because the after-tax benefit is based on the US tax system, it applies differently to investors in Korea. If its weighting decisions miss the mark, it may lag general bond products.

It is a suitable candidate for US taxable investors seeking bond income that accounts for taxes. Products such as IUSB and JCPB fit those who do not factor in taxes, while this product fits those who want improved after-tax returns, so comparing them together before choosing is advisable.