Harbor Capital Advisors Expands Growing ETF Lineup with the Harbor AlphaEdge Small Cap Earners ETF
11 July 2024 - 12:52AM
Business Wire
Harbor Capital Advisors, Inc. ("Harbor"), an asset manager that
curates a suite of actively-managed ETFs, mutual funds, and
collective investment trusts, has added the Harbor AlphaEdge
Small Cap Earners ETF (Ticker: EBIT) to its growing lineup of
ETF offerings, managed by Harbor Capital Advisors, Inc.
Why EBIT?
Harbor developed EBIT for advisors looking for small cap
products that seek a distinctive approach in the pursuit of alpha
potential. With EBIT, unprofitable companies are eliminated from
the investment universe at the outset, with the goal of allowing
for a narrowed focus on the most profitable1 small cap
companies.
“In our conversations with clients, we have heard a consistent
and growing concern around the lack of profitability of small cap
companies that comprise the Russell 2000 Index. We built EBIT as a
solution for advisors who are cautious about small caps given
concerns about profitability levels,” said Kristof Gleich,
President, and CIO at Harbor Capital Advisors. “We’ve responded
with a straightforward, repeatable investment approach that we feel
strongly has greater potential to generate immediate and long-term
compelling returns for clients.”
Consider EBIT…
Gleich added, “EBIT is for advisors who understand the potential
benefits of a small cap allocation to client portfolios but don’t
have time to worry about the increasing lack of profitability in
the small cap stock universe.”
Harbor has refined small cap exposure with EBIT by leaning into
profitability in an effort to transform what an investment in the
asset class looks like. Designed to allocate to profitable small
caps, we think EBIT is well positioned to deliver improved investor
returns in the small cap space.
The Harbor AlphaEdge Small Cap Earners ETF (Ticker: EBIT)
seeks to provide investment results that correspond, before fees
and expenses, to the performance of the Harbor AlphaEdge Small Cap
Earners Index.
About Harbor Capital
Harbor Capital Advisors is an asset manager with an AUM of
$59.98 billion as of June 30, 2024 and is known for prudently
curating a suite of active ETFs, mutual funds, and collective
investment trusts from boutique managers. Advisors looking for
distinct and differentiated investment options for their clients’
portfolios often connect with our obsession to find what we believe
are the best and most bold solutions that have the potential to
produce compelling risk-adjusted returns. For more information,
visit www.harborcapital.com.
1Profitable companies as defined by (1) median trailing 12-month
operating margin (defined as operating profit divided by sales)
over the prior 12 quarters greater than or equal to 1%; and (2)
aggregate operating margin over the prior 12 quarters greater than
or equal to 1%.
Investors should carefully consider the investment
objectives, risks, charges, and expenses of a Harbor fund before
investing. To obtain a summary prospectus or prospectus for this
and other information, visit harborcapital.com or call
800-422-1050. Read it carefully before investing.
Investing involves risk, principal loss is possible. Unlike
mutual funds, ETFs may trade at a premium or discount to their net
asset value. The ETF is new and has limited operating history to
judge.
EBIT: There is no guarantee that the investment objective of the
Fund will be achieved. Stock markets are volatile and equity values
can decline significantly in response to adverse issuer, political,
regulatory, market and economic conditions. Stocks of small cap
companies pose special risks, including possible illiquidity and
greater price volatility than stocks of larger, more established
companies. The Fund may not exactly track the performance of the
Index with perfect accuracy at all times. Tracking error may occur
because of pricing differences, timing and costs incurred by the
Fund or during times of heightened market volatility. Harbor
Capital Advisors, Inc. (the “Index Provider”) selects companies for
the Index based on a proprietary methodology and there is no
guarantee that the construction methodology will accurately provide
the intended exposure. The Fund's assets may be concentrated in a
particular sector or industries to the extent the Index is
concentrated, which would subject the Fund to the risk that
economic, political, or other market conditions that have a
negative effect on that sector or industry will negatively impact
the value of the Fund. There can be no assurance that the Fund will
grow to or maintain an economically viable size, in which case the
Board of Trustees may determine to liquidate the Fund.
The Russell 2000® Index is a small-cap U.S. stock market
index that makes up the smallest 2,000 stocks in the Russell 3000®
Index and are trademarks of Frank Russell Company. These unmanaged
indices do not reflect fees and expenses and are not available for
direct investment.
The Harbor AlphaEdge Small Cap Earners Index evaluates the
performance of a specific subset within the small cap US Equity
market. This subset comprises companies listed in the Russell 2000
Index that have met profitability criteria over the past twelve
quarters. The index employs a modified profitability weighting
methodology.
The constituents of the Russell 2000® Index were used by Harbor
Capital Advisors, Inc. or its affiliate as the starting universe
for selection of the companies included in the Harbor AlphaEdge
Small Cap Earners Index. Frank Russell Company (“FTSE Russell”)
does not in any way create, calculate, maintain, review, sponsor,
support, promote or endorse the Harbor AlphaEdge Small Cap Earners
Index. In no event shall any FTSE Russell party have any liability
for any direct, indirect, special, incidental, punitive,
consequential (including without limitation lost profits) or any
other damages in connection with the constituents of the Harbor
AlphaEdge Small Cap Earners Index.
Alpha is a measure of risk (beta)-adjusted return.
The views expressed herein may not be reflective of current
opinions, are subject to change without prior notice, and should
not be considered investment advice or a recommendation to purchase
a particular security.
Foreside Fund Services, LLC is the Distributor of the Harbor
ETFs.
3653119
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240710474946/en/
MEDIA CONTACTS: Hedda Nadler –
Hedda@mountandnadler.com Andrew Greene –
Andrew@mountandnadler.com 212-759-4440