How did the Fund perform during the period?

Hartford Core Bond ETF returned 6.91%, based on net asset value, for the period from February 19, 2020 through July 31, 2020, outperforming its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 5.61% for the same period. The Fund also outperformed the 5.53% average return of the Lipper Core Bond Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) fixed-income markets largely generated positive total returns over the trailing period ended July 31, 2020. This was largely because the U.S. Federal Reserve (Fed) cut rates to at or near zero, committed to buying an unlimited amount of U.S. Treasury and agency mortgage-backed securities, and increased the size and scope of its asset purchase program in response to the COVID-19 pandemic. Sovereign debt yields also declined to historic lows across several developed markets due to the fear and uncertainty stemming from the coronavirus pandemic.

Investment-grade credit markets underperformed U.S. Treasuries. Credit spreads widened as the coronavirus pandemic led to a flight to the perceived safety of U.S. Treasuries. Investment-grade corporate spreads widened by 0.25%, as measured by the Bloomberg Barclays U.S. Corporate Investment Grade Index.

Monetary policy had made a pivot toward lower interest rates in 2019 on account of tepid economic data, trade policy uncertainty, and stubbornly low inflation prior to the COVID-19 pandemic. Global central banks added extraordinary monetary stimulus to support global economies in 2020 amid the crisis. As noted above, the Fed cut rates to near zero, committed to buying an unlimited amount of U.S. Treasury and agency mortgage-backed securities, and increased the size and scope of its asset purchase program to include corporate bonds, agency commercial mortgage-backed securities, and commercial paper, while also lending support to the municipal funding market. The European Central Bank (ECB) launched its own massive asset purchase program, which for the first time included non-financial commercial paper, while also easing collateral rules. The U.S. dollar strengthened versus most currencies amid coronavirus concerns. In the U.S., first-quarter gross domestic product (GDP) contracted by a 5.0% annualized rate, housing activity exceeded expectations, and inflation decelerated.

Global economic activity was strong in the latter half of 2019 but slid to a halt by the end of the first quarter of 2020 amid global economic shutdowns stemming from the COVID-19 pandemic. In the U.S., housing activity continued to recover after a challenging start to the year, while consumer confidence remained strained amid rising COVID-19 case counts in re-opened states. Eurozone manufacturing activity, as measured by the Purchasing Managers’ Index (PMI), contracted sharply toward the end of March 2020 as global economic activity ground to a halt but ended the period in expansionary territory amid a further easing of restrictions within Eurozone economies. China’s GDP contracted at an annualized rate of 6.80% over the first quarter of 2020 but recovered with an annualized growth rate of 3.2% in the second quarter of 2020, beating consensus estimates.

Over the period, the U.S. dollar generated mixed results against global currencies. European currencies such as the euro generally performed well, driven by the proposal and subsequent agreement in July of the European Union (EU) Next Generation Fund, which significantly reduced the euro area break-up risk premium. The British pound performed well as the risk of a hard Brexit scenario (where the United Kingdom, or U.K., would leave the EU without a trade deal in place) receded significantly late in 2019 when the Conservative party won a large majority in the U.K. general election. Safe-haven currencies such as the Japanese yen and Swiss franc performed well as investors shifted into safe havens in anticipation of the impending collapse in economic activity due to the coronavirus pandemic early in 2020.

Absolute returns across most major fixed income non-governmental sectors were positive for the period ended July 31, 2020, driven by a decrease in government bond yields. On an excess return basis relative to U.S. Treasuries, most nongovernmental sectors posted negative returns over the same period.

The Fund’s credit positioning was the primary driver of relative outperformance versus the Bloomberg Barclays U.S. Aggregate Bond Index. Investment-grade credit positioning within the Industrials and Financials sectors benefited relative results, as did an underweight position to non-corporate fixed-income securities. Security selection within agency mortgage-backed securities (MBS) pass-through securities contributed positively to relative results over the period. Conversely, the Fund’s allocation to securitized sectors such as non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and collateralized loan obligations (CLOs) detracted from relative results. The Fund held directional interest

rate positions during the period, including interest rate futures and interest rate swaps, which contributed positively to results. Additionally, the Fund’s allocation to Treasury Inflation-Protected Securities (TIPS) had a positive impact on relative results.

What is the outlook as of the end of the period?

We maintain a pro-cyclical risk posture while continuing to monitor the developments of global policymakers’ responses to the social and economic fallout from the coronavirus pandemic. The Fund ended the period with an overweight positioning to investment-grade credit. The Fund also maintained an overweight position to agency MBS pass-throughs, as we believe that Fed purchases will continue to support MBS markets. In addition, the Fund held positions in structured finance tied to residential mortgages, senior CMBS with attractive collateral, and high-quality CLOs.

Important Risks

The Fund is new and has a limited operating history. Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund’s shares may fluctuate due to changes in the market value of the Fund’s holdings. The Fund’s share price may fluctuate due to changes in the relative supply of and demand for the shares on an exchange. The Fund is actively managed and does not seek to replicate the performance of a specified index. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • 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, and counterparty risk. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. • The risks associated with mortgage related- and asset-backed securities as well as collateralized loan obligations (CLOs) include credit, interest-rate, prepayment, liquidity, default and extension risk. • The purchase of securities in the To-Be-Announced (TBA) market, can result in additional price and counterparty risk. • Restricted securities may be more difficult to sell and price than other securities. • Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. • In certain instances, unlike other ETFs, 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.

How did the Fund perform during the period?

Hartford Municipal Opportunities ETF returned 4.90%, based on net asset value, for the year ended July 31, 2020, outperforming its benchmark, the Bloomberg Barclays Municipal Bond 1-15 Year Blend (1-17) Index, which returned 4.81% for the same period. The Fund also outperformed the 4.12% average return of the Lipper Intermediate Municipal Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) fixed-income markets largely generated positive total returns over the twelve-month period ended July 31, 2020. The period was dominated by the COVID-19 pandemic, leading to a significant decline in asset prices followed by a recovery driven by drastic monetary and fiscal policy reactions.

On the monetary side, the U.S. Federal Reserve (Fed) cut rates to at or near zero, committed to buying an unlimited amount of U.S. Treasuries and agency mortgage-backed securities (MBS), and further expanded the size and scope of its asset purchase program in response to the COVID-19 pandemic. Among many new programs that were introduced and then expanded was the Municipal Lending Facility (MLF). The MLF was designed to relieve funding needs for states and cities through direct debt sales to the Fed; after its inception, the program was expanded to include smaller participants (defined by population size) as well as up to two revenue bond issuers from each state.

On the fiscal side, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Specific to municipal bonds, CARES provided significant support to hospitals, universities and airports, although it did not provide support for lost revenues for states and localities.

Against this backdrop, tax-exempt municipal bonds, as represented by the ICE Bank of America Merrill Lynch U.S. Municipal Securities Index, posted a positive total return of 5.11% for the period, underperforming duration-equivalent U.S. Treasuries by 4.08%. The yield on 10-year AAA rated general obligation municipal bonds (GOs) decreased during the period along with the yield on 10-year Treasuries, though to a lesser degree. The ratio of yields on 10-year AAA GOs to yields on 10-year Treasuries increased over the period, rising from 75.2% to 118.2%. Market liquidity became challenged in March and April despite issuers returning to the market, and new issuances have been met by strong demand pushing spreads tighter.

The Fund’s duration and yield curve positioning were the primary drivers of relative outperformance versus the Bloomberg Barclays Municipal Bond 1-15 Year Blend (1-17) Index during the period. A long duration

position had a positive impact as interest rates fell. Security selection within investment-grade GOs and revenue bonds detracted from the Fund’s relative performance, particularly within the Healthcare sector. Additionally, the Fund’s allocation to high-yield revenue bonds detracted from relative performance during the period as the positive impact from investments in the Tobacco sector was offset by the negative impact of those in the Healthcare sector.

Derivatives were not used in the Fund during the period and, therefore, did not have any impact on performance during the period.

What is the outlook as of the end of the period?

We expect that fallout from COVID-19 will continue to challenge municipal issuers for at least the next twelve months but remain positive on municipal bonds.

States have broadly built up strong reserve levels over the past decade, and we believe that they retain considerable flexibility to manage expenditures and revenues during the downturn. Likewise, local governments generally maintain solid reserve levels, and we believe that their heavy reliance on property taxes will likely provide a shield from sharp revenue declines. From our perspective, the CARES Act was a good step to providing aid in addition to existing fundamentals for many other issuers, although it did not provide direct aid to states and local governments for lost revenues. In our view, more aid would certainly be beneficial, and is still a possibility through additional legislation similar to the CARES Act (CARES 2.0), although the details of the bill and timing of its passage remain subject to political maneuvering. Additional aid to universities and hospitals appears likely in our view, while aid to state and local governments remains unclear. Regardless of the CARES 2.0 outcome, our expectation is for dispersion among many issuers based on their resiliency and bond structure, creating a potential opportunity for security selection.

At the sector level, we continue to favor Healthcare, Transportation, Housing, and Special Tax Bonds. In our view, many Transportation, Housing, and Special Tax sector issuers entered the crisis with the fundamentals necessary to weather the downturn. For Healthcare, we expect to focus on hospitals that had strong balance sheets entering the crisis, combined with proven business models; for the weaker hospitals, we believe ratings downgrades are likely. For states, given their reserves and spending flexibility, we expect only incremental downgrades for the most at-risk names. For local governments, we believe the issuers most at risk are those with a heavy reliance on sales and/or income taxes along with low reserve balances. We have a positive view on high-yield municipal bonds and have opportunistically added exposure within the Fund, focusing on the issuers we believe have strong enough balance sheets to weather the downturn.

We expect total municipal bond issuance to be similar to the 2019 level, albeit with a lower portion coming from tax-exempt bonds (versus more from taxable bonds). On the demand side, crossover buyers have returned to municipal bonds. If that dynamic remains, we believe that diminished supply will likely be met with strong demand, and we expect that spreads may become tighter, although volatility may be expected in the current environment.

Important Risks

Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund’s shares may fluctuate due to changes in the market value of the Fund’s holdings. The Fund’s share price may fluctuate due to changes in the relative supply of and demand for the shares on an exchange. The Fund is actively managed and does not seek to replicate the performance of a specified index. • Municipal securities may be adversely impacted by state/local, political, economic, or market conditions. Investors may be subject to the federal Alternative Minimum Tax as well as state and local income taxes. Capital gains, if any, are taxable. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • High-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • In certain instances, unlike other ETFs, 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.

How did the Fund perform during the period?

Hartford Schroders Tax-Aware Bond ETF returned 6.18% based on net asset value for the year ended July 31, 2020, outperforming the Fund’s benchmark, the Bloomberg Barclays Municipal Bond Index, which returned 5.36% for the same period. The Fund also outperformed the 4.14% average return of the Lipper General & Insured Municipal Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund, during the year.

Why did the Fund perform this way?

For the year ended July 31, 2020, the impact from the COVID-19 pandemic, which became widespread during the first quarter of 2020, was the main factor affecting the Fund’s performance. In the period leading up to the outbreak, spreads for assets perceived to be riskier, including both corporate and tax-exempt bonds, had generally been tightening as investors sought yield from all corners of the market. The disruption that accelerated in March 2020 was such a material market event that it significantly shaped the narrative for the Fund’s trailing one-year performance. Despite this occurrence, the Fund’s relative performance was only marginally behind its benchmark for the first quarter of 2020, and the Fund’s performance relative to its benchmark in the second quarter of 2020 more than offset this impact, as the Fund’s portfolio management team was able to add to the Fund’s corporate bond exposure at what they believed were very attractive valuations. The Fund’s allocation to securitized assets had a fairly neutral impact on the Fund’s one-year performance relative to the Bloomberg Barclays Municipal Bond Index; however, the assets provided liquidity during the market sell-off so that the Fund could add to its corporate bond exposure.

The municipal bond market, as measured by the Bloomberg Barclays Municipal Bond Index, generated a 5.36% return for the twelve months ended July 31, 2020, with 2020 year-to-date performance at 3.80%. For the same period, the Bloomberg Barclays Corporate Bond Index returned 12.44% for the year ended July 31, 2020, and 8.44% for the year-to-date period. Since the end of March 2020, both municipal bond and corporate bond sectors materially outperformed U.S. Treasuries due to a substantial rally in riskier asset classes that reflected many investors’ belief in a V-shaped recovery.

The Fund outperformed the Bloomberg Barclays Municipal Bond Index due to both strong security selection within tax-exempt municipal bonds and sector selection from the allocation to corporate bonds. With regard to security selection, specific tax-exempt federal agency bonds and housing securities stood out for their above-average contributions to the Fund’s relative performance, as they outperformed the broader Bloomberg Barclays Municipal Bond Index. Smaller contributions were made by tax-exempt higher education and healthcare bonds. There were no notable detractors to the Fund’s performance among its municipal bond investments. Sector selection at the top line was positive, as the impact from an out-of-benchmark allocation to corporate bonds, both industrials and financials, offset the underweight to tax-exempt municipals, which detracted from relative performance. Within the allocation to tax-exempt bonds, the underweight allocation to general obligation bonds and overweight allocation to federal agency bonds were material detractors from relative performance versus the Bloomberg Barclays Municipal Bond Index. Both sectors (tax-exempt municipals and corporates) posted negative excess returns relative to U.S. Treasuries for the twelve-month period; however, corporates generally outperformed tax-exempt municipals on a relative basis.

Additionally, the Fund’s small derivatives exposure, specifically Treasury futures used to manage duration, detracted slightly from the Fund’s relative performance due to the yield curve flattening over the one-year period.

What is the outlook?

The market currently continues to face an extremely challenging economic backdrop while it receives substantial stimulus and liquidity support from central banks and governments globally. The magnitude, speed, and ambition of authorities’ reaction to the crisis is truly unprecedented, and the Fund’s portfolio management team believes these stimulus efforts will be the primary driver for the performance of risk assets for the immediate future. While central bank and fiscal responses can help address liquidity issues, there are still sectors in which the Fund’s portfolio management team believes solvency and fundamental concerns will persist. For this reason, the Fund’s portfolio management team believes risk assets will remain well supported in credit. In addition, valuations appear to have improved materially from the low levels seen in March and early-April 2020 and the markets’

trajectory remains vulnerable to a number of uncertainties, such as the evolution of the virus and continued fiscal support from Congress. A contentious presidential election in the U.S. later this year, combined with some degree of cash waiting to be invested in new opportunities, may also affect the markets and Fund performance.

With respect to interest rates, current official policy both in the U.S. and globally should cause rates to remain at or near zero through 2022. With unprecedented intervention ongoing from the U.S. Federal Reserve (Fed) and a concerted campaign to maintain low interest rates, the Fund’s portfolio management team believes rates will remain low and in a fairly defined range for the foreseeable future. While the volume of issuance the U.S. Treasury has to undertake may create a slight steepening bias to yield curves, the Fund’s portfolio management team believes any material steepening of the yield curve would likely induce further intervention from authorities.

With regard to municipals, issuance usually slows during the summer months, but this may not be the case this year due to continued low rates, pent-up demand remaining from the slowdown in March, and the potential for some issuers to choose to pull supply forward to avoid any potential volatility due to the November elections. Through year end, the consensus view is that municipal bond issuance is likely to remain stable or increase slightly, with a continued strong pace of taxable supply. Net flows are anticipated to remain positive after recent strong performance.

From a credit perspective, with a price tag of $3 trillion and growing, the “wait and see” approach at the federal level regarding Phase 4 of the stimulus has left states in a potentially precarious position. We expect that municipalities will likely be forced to make difficult, and politically unpopular, decisions to increase taxes and/or cut expenditures. In our view, public education, healthcare, and other essential services, including spending on infrastructure, will likely experience cuts in the near term. During the Great Recession that began in 2008, states cut spending nearly $300 billion, while raising taxes and fees $100 billion, to close the budget gaps. The budget holes due to COVID-19 are expected to dwarf those of prior recessions. Regardless of the expected political posturing, the Fund’s portfolio management team believes the federal government will allocate funding to state and local governments over the next several months.

While the municipal market is dealing with credit uncertainty, the Fund’s portfolio management team believes in the essentiality of the municipal market for long-term investment opportunities. As always, prudent analysis and credit selection are a cornerstone of the Fund’s investment process.

Important Risks

Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund’s shares may fluctuate due to changes in the market value of the Fund’s holdings. The Fund’s share price may fluctuate due to changes in the relative supply of and demand for the shares on an exchange. The Fund is actively managed and does not seek to replicate the performance of a specified index. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Municipal securities may be adversely impacted by state/local, political, economic, or market conditions; these risks may be magnified if the Fund focuses its assets in municipal securities of issuers in a few select states. Investors may be

subject to the federal Alternative Minimum Tax as well as state and local income taxes. Capital gains, if any, are taxable. • Mortgage related- and asset-backed securities’ risks include credit, interest-rate, prepayment, and extension risk. • Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. • The purchase of securities in the To-Be-Announced (TBA) market can result in additional price and counterparty risk. • 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, and counterparty risk. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. • The Fund may have high portfolio turnover, which could increase its transaction costs and an investor’s tax liability. • In certain instances, unlike other ETFs, 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.

How did the Fund perform during the period?

Hartford Short Duration ETF returned 3.78% based on net asset value for the twelve-month period ended July 31, 2020, underperforming its benchmark, the Bloomberg Barclays 1-3 Year U.S. Government/Credit Index, which returned 4.46% for the same period. The Fund outperformed the 3.43% average return of the Lipper Short Investment Grade Debt Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) fixed-income markets largely generated positive total returns over the trailing twelve-month period ended July 31, 2020 as the U.S. Federal Reserve (Fed) cut rates to near zero, committed to buying an unlimited amount of U.S. Treasury and agency mortgage-backed securities, and increased the size and scope of its asset purchase program in response to the COVID-19 pandemic. Sovereign debt yields also declined to historic lows across several developed markets due to the fear and uncertainty stemming from the coronavirus pandemic.

Investment-grade credit markets underperformed U.S. Treasuries. Credit spreads widened as the coronavirus pandemic led to a flight to the perceived safety of U.S. Treasuries. Investment-grade corporate spreads widened by 0.25%, as measured by the Bloomberg Barclays U.S. Corporate Investment Grade Index, while high-yield corporate bond spreads widened by 1.17%, as measured by the Bloomberg Barclays U.S. Corporate High Yield Index.

Monetary policy made a pivot toward lower interest rates in 2019 on account of tepid economic data, trade policy uncertainty, and stubbornly low inflation prior to the COVID-19 pandemic. Global central banks added extraordinary monetary stimulus to support global economies in 2020 amid the crisis. As noted above, the Fed cut rates to near zero, committed to buying an unlimited amount of U.S. Treasury and agency mortgage-backed securities, and increased the size and scope of its asset purchase program to include corporate bonds, agency commercial mortgage-backed securities, and commercial paper, while also lending support to the municipal funding market. The European Central Bank (ECB) launched its own massive asset purchase program, which for the first time included non-financial commercial paper, while also easing collateral rules. The U.S. dollar strengthened versus most currencies amid coronavirus concerns. In the U.S., first-quarter gross domestic product (GDP) contracted by a 5.0% annualized rate, housing activity exceeded expectations, and inflation decelerated.

Global economic activity was strong in the latter half of 2019, but slid to a halt by the end of the first quarter of 2020 amid global economic shutdowns stemming from the COVID-19 pandemic. In the U.S., housing activity continued to recover after a challenging start to the year, while consumer confidence remained strained amid rising COVID-19 case counts in re-opened states. Eurozone manufacturing activity, as measured by the Purchasing Managers’ Index (PMI), contracted sharply

toward the end of March 2020 as global economic activity ground to a halt but ended the period in expansionary territory amid a further easing of restrictions within Eurozone economies. China’s GDP contracted at an annualized rate of 6.80% over the first quarter of 2020 but recovered with an annualized growth rate of 3.2% in the second quarter of 2020, beating consensus estimates.

Over the period, the U.S. dollar generated mixed results against global currencies. European currencies such as the euro generally performed well driven by the proposal and subsequent agreement in July of the European Union (EU) Next Generation Fund, which significantly reduced the euro area break-up risk premium. The British pound performed well as late in 2019 the risk of a hard Brexit scenario (where the United Kingdom, or U.K., would leave the EU without a trade deal in place) receded significantly late in 2019 when the Conservative party won a large majority in the U.K. general election. Safe-haven currencies such as the Japanese yen and Swiss franc performed well as investors shifted into safe-havens in anticipation of the impending collapse in economic activity due to the coronavirus pandemic early in 2020. Emerging market and commodity-linked currencies were laggards due to recession fears stemming from the coronavirus pandemic, as well as a collapse in talks among non-OPEC, crude oil-exporting countries early in 2020.

The Fund’s duration and yield curve positioning was the primary driver of underperformance relative to the Bloomberg Barclays 1-3 Year U.S. Government/Credit Index over the period, particularly during the first quarter of 2020 when the Fund held short duration positions as interest rates fell. Positioning within credit sectors contributed positively to performance overall, as the negative impact from an overweight to investment-grade bonds was offset by an out-of-benchmark exposure to high yield securities and bank loans. The Fund’s out-of-benchmark allocation to securitized sectors such as mortgage-backed securities (MBS), asset-backed securities (ABS), and commercial mortgage-backed securities (CMBS) detracted from performance relative to the Bloomberg Barclays 1-3 Year U.S. Government/Credit Index over the period.

Derivatives were not used in a significant manner in the Fund during the period and did not have a material impact on performance during the period.

What is the outlook as of the end of the period?

At the end of the period, the Fund maintained exposure to bank loans and high-yield fixed income investments and continued to overweight investment-grade corporate bonds, favoring the Financials and Industrials sectors. The Fund maintained allocations to agency MBS and non-agency MBS, as the portfolio management team believes they have attractive valuations. The portfolio management team also continued to favor ABS, higher quality collateralized loan obligations (CLOs), and CMBS. The Fund is positioned with a pro-cyclical risk positioning favoring the credit and securitized sectors. The portfolio management team’s base case expectation is for a sharp, deep global recession

followed by a gradual recovery that will depend on public health and fiscal measures. Monetary and fiscal responses have surpassed what was seen during the Great Financial Crisis of 2007-2009 in both size and speed, and we believe such measures will continue to support the economy and markets. We expect interest rates to hold steady in the near term. We believe the front-end of the yield curve is anchored as policy rates are expected to stay at or near zero for the foreseeable future. As a result, the Fund is positioned with a neutral duration bias.

Important Risks

Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund’s shares may fluctuate due to changes in the market value of the Fund’s holdings. The Fund’s share price may fluctuate due to changes in the relative supply of and demand for the shares on an exchange. The Fund is actively managed and does not seek to replicate the performance of a specified index. The Fund may allocate a portion of its assets to specialist portfolio managers which may not work as intended. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • Loans can be difficult to value and less liquid than other types of debt instrument; they are also subject to nonpayment, collateral, bankruptcy, default, extension, prepayment and insolvency risks. • The risks associated with mortgage related- and asset-backed securities include credit, interest-rate, prepayment, liquidity, default and extension risk. • High-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • 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, and counterparty risk. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. • Restricted securities may be more difficult to sell and price than other securities. • Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. • In certain instances, unlike other ETFs, 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.

How did the Fund perform during the period?

Hartford Total Return Bond ETF returned 10.34%, based on net asset value, for the year ended July 31, 2020, outperforming its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned 10.12% for the same period. The Fund also outperformed the 9.47% average return of the Lipper Core Bond Funds peer group, a group of funds with investment strategies similar to those of the Fund.

Why did the Fund perform this way?

United States (U.S.) fixed income markets largely generated positive total returns over the trailing twelve month period ended July 31, 2020 as the U.S. Federal Reserve (Fed) cut rates to near zero, committed to buying an unlimited amount of U.S. Treasury and agency mortgage-backed securities, and increased the size and scope of its asset purchase program in response to the COVID-19 pandemic. Sovereign debt yields also declined to historic lows across several developed markets due to the fear and uncertainty stemming from the coronavirus pandemic.

Investment-grade credit markets underperformed U.S. Treasuries. Credit spreads widened as the coronavirus pandemic led to a flight to the perceived safety of U.S. Treasuries. Investment-grade corporate spreads widened by 0.25%, as measured by the Bloomberg Barclays U.S. Corporate Investment Grade Index, while high-yield corporate bond spreads widened by 1.17%, as measured by the Bloomberg Barclays U.S. Corporate High Yield Index.

Monetary policy made a pivot toward lower interest rates in 2019 on account of tepid economic data, trade policy uncertainty, and stubbornly low inflation prior to the COVID-19 pandemic. Global central banks added extraordinary monetary stimulus to support global economies in 2020 amid the crisis. As noted above, the Fed cut rates to near zero, committed to buying an unlimited amount of U.S. Treasury and agency mortgage-backed securities, and increased the size and scope of its asset purchase program to include corporate bonds, agency commercial mortgage-backed securities, and commercial paper, while also lending support to the municipal funding market. The European Central Bank (ECB) launched its own massive asset purchase program, which for the first time included non-financial commercial paper, while also easing collateral rules. The U.S. dollar strengthened versus most currencies amid coronavirus concerns. In the U.S., first quarter gross domestic product (GDP) contracted by a 5.0% annualized rate, housing activity exceeded expectations, and inflation decelerated.

Global economic activity was strong in the latter half of 2019, but slid to a halt by the end of the first quarter of 2020 amid global economic shutdowns stemming from the COVID-19 pandemic. In the U.S., housing activity continued to recover after a challenging start to the year, while consumer confidence remained strained amid rising COVID-19 case counts in re-opened states. Eurozone manufacturing activity, as measured by the Purchasing Managers’ Index (PMI), contracted sharply toward the end of March 2020 as global economic activity ground to a halt but ended the period in expansionary territory amid a further easing of restrictions within Eurozone economies. China’s GDP contracted at an annualized rate of 6.80% over the first quarter of 2020 but recovered with an annualized growth rate of 3.2% in the second quarter of 2020, beating consensus estimates.

Over the period, the U.S. dollar generated mixed results against global currencies. European currencies such as the euro generally performed well driven by the proposal and subsequent agreement in July of the European Union (EU) Next Generation Fund, which significantly reduced the euro area break-up risk premium. The British pound performed well as late in 2019 the risk of a hard Brexit scenario (where the United Kingdom, or U.K., would leave the EU without a trade deal in place) receded significantly late in 2019 when the Conservative party won a large majority in the U.K. general election. Safe-haven currencies such as the Japanese yen and Swiss franc performed well as investors shifted into safe-havens in anticipation of the impending collapse in economic activity due to the coronavirus pandemic early in 2020. Emerging market and commodity-linked currencies were laggards due to recession fears stemming from the coronavirus pandemic, as well as a collapse in talks among non-OPEC, crude oil-exporting countries early in 2020.

Absolute returns across most major fixed income non-governmental sectors were positive for the twelve-month period ended July 31, 2020, driven by a decrease in government bond yields. On an excess return basis relative to U.S. Treasuries, most non-governmental sectors posted negative returns over the same period.

The Fund’s credit positioning was the primary driver of relative outperformance versus the Bloomberg Barclays U.S. Aggregate Bond Index. Investment-grade credit positioning within the Industrials and Utilities sectors benefited relative results while an out-of-benchmark allocation to high yield fixed-income securities also had a positive impact on returns. An overweight to agency mortgage-backed securities (MBS) contributed positively to relative results over the year. Conversely, the

Fund’s allocation to securitized sectors such as non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and asset-backed securities (ABS) detracted from relative results.

The Fund’s allocation to Treasury Inflation Protected Securities (TIPS) detracted from relative results as inflation expectations declined during the period.

Derivatives were used within the Fund during the period; specifically, the Fund held directional interest rate positions during the period, including interest rate futures and interest rate swaps, which detracted from overall Fund performance.

What is the outlook as of the end of the period?

We maintain a pro-cyclical risk posture while continuing to monitor developments with respect to global policymakers’ responses to the social and economic fallout from the coronavirus pandemic. The Fund ended the period with an overweight positioning to investment-grade credit. The Fund maintained an overweight to agency MBS pass-throughs, as we believe that Fed purchases will continue to support MBS markets. The Fund also held structured finance investments tied to residential mortgages, senior CMBS with what we believe is attractive collateral, and high-quality collateralized loan obligations. The Fund holds an out-of-benchmark allocation to high yield, as we believe high-yield spreads more than adequately compensate for expected default losses. We continued to hold select exposure to emerging-markets (EM) debt.

Important Risks

Investing involves risk, including the possible loss of principal. The net asset value (NAV) of the Fund’s shares may fluctuate due to changes in the market value of the Fund’s holdings. The Fund’s share price may fluctuate due to changes in the relative supply of and demand for the shares on an exchange. The Fund is actively managed and does not seek to replicate the performance of a specified index. The Fund may allocate a portion of its assets to specialist portfolio managers, which may not work as intended. • Fixed income security risks include credit, liquidity, call, duration, and interest-rate risk. As interest rates rise, bond prices generally fall. • The risks associated with mortgage related- and asset-backed securities include credit, interest-rate, prepayment, liquidity, default and extension risk. • The purchase of securities in the To-Be-Announced (TBA) market, can result in additional price and counterparty risk. • 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, and counterparty risk. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets. • High-yield (“junk”) bonds involve greater risk of price volatility, illiquidity, and default than higher-rated debt securities. • Obligations of U.S. Government agencies are supported by varying degrees of credit but are generally not backed by the full faith and credit of the U.S. Government. • Restricted securities may be more difficult to sell and price than other securities. • In certain instances, unlike other ETFs, 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.

Bloomberg Barclays 1-3 Year U.S. Government/Credit Index (reflects no deduction for fees, expenses or taxes) is comprised of the U.S. Government/Credit component of the U.S. Aggregate Index. The 1-3 Year Government/Credit Index includes securities in the 1-3 year maturity range in the Government/Credit Index.

Bloomberg Barclays Municipal Bond 1-15 Year Blend (1-17) Index (reflects no deduction for fees, expenses or taxes) is a sub-index of the Bloomberg Barclays Municipal Bond Index. It is a rules-based market value-weighted index of bonds with maturities of 1 year to 17 years engineered for the tax-exempt bond market.

Bloomberg Barclays Municipal Bond Index (reflects no deduction for fees, expenses or taxes) is designed to cover the USD-denominated long-term tax exempt bond market.

Bloomberg Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) is composed of securities that are Securities and Exchange Commission registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

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