
Harbor Human Capital Factor Unconstrained ETF (HAPY)
Access a data-driven strategy that seeks to capture the link between strong corporate culture and equity value
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Welcome
Research Suggests That Doing the Right Thing Pays.
Harbor Capital has partnered with Irrational Capital to develop a data-driven strategy built on the Human Capital Factor.
What is the Human Capital Factor? It’s a systematic measure of corporate culture that seeks to deeply understand the importance and value created between human capital and potential equity performance. In other words, the Human Capital Factor is based on the premise that happy and motivated employees can generate better outcomes for companies and investors.
The index underlying HAPY takes a socially conscious approach that seeks to access the potential alpha opportunity of strong corporate culture.

Additional Resources

Dan Ariely
Behavioral Economist, Co-Founder, Irrational Capital
Of all the investments companies make, creating a strong corporate culture is one of the best ways to create value. This is why employee behavior and motivation can be such an important element of stock market performance.



The above figures represent Irrational Capital’s full data set. A subset of this data is used in constructing HAPY. Source: Irrational Capital. As of 3/31/2023.
- Irrational Capital looks to identify companies with strong employer/employee relationships.
- The Human Capital Factor seeks to deeply understand company culture and intrinsic employee motivation as a potential driver of stock performance.
- Focused on capturing and investing in the benefits that strong corporate culture may have on a company's stock price.

The Human Capital Factor measures intrinsic and extrinsic motivation that establishes the relationship between employee well-being and business fundamentals which, in turn, could impact equity performance.

The index underlying HAPY takes a socially conscious approach that aims to access the potential alpha opportunity of strong corporate culture.

The Human Capital Factor is grounded in proprietary data that seeks to prove "doing the right thing" can pay.
Help Clients Be Their Better Selves
Dan Ariely shares the important role that advisors play during times of market volatility.
Related Funds to Consider
Overview
Investment Team
Morningstar Medalist Rating™

10
77
The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. |
"Of all the investments companies make, creating a strong corporate culture is one of the best ways to create value. This is why employee behavior and motivation can be such an important element of stock market performance."
Dan Ariely
Behavioral Economist, Co-Founder, Irrational Capital
Performance
Distribution History
Ex-Date
Record Date
Payable Date
Ordinary Income
Short Term Capital Gains
Long Term Capital Gains
Total Distribution
12/21/2022
12/22/2022
12/27/2022
0.02561
--
--
0.02561
Holdings
Full Holdings
As of 9/29/2023
Company Name [Ticker]
Category Name
Country
Cusip
Shares
Current Price ($)
Market Value ($)
% of Net Assets
GLOBANT SA [GLOB]
EQUITY
L44385109
820
197.85
162,237.00
1.6
SENTINELONE INC -CLASS A [S]
EQUITY
81730H109
9,571
16.86
161,367.06
1.5
SPOTIFY TECHNOLOGY SA [SPOT]
EQUITY
L8681T102
1,036
154.64
160,207.04
1.5
TPG INC [TPG]
EQUITY
872657101
5,260
30.12
158,431.20
1.5
GUIDEWIRE SOFTWARE INC [GWRE]
EQUITY
40171V100
1,734
90.00
156,060.00
1.5
SAREPTA THERAPEUTICS INC [SRPT]
EQUITY
803607100
1,284
121.22
155,646.48
1.5
ZSCALER INC [ZS]
EQUITY
98980G102
1,000
155.59
155,590.00
1.5
MORNINGSTAR INC [MORN]
EQUITY
617700109
659
234.24
154,364.16
1.5
VMWARE INC-CLASS A [VMW]
EQUITY
928563402
925
166.48
153,994.00
1.5
EPAM SYSTEMS INC [EPAM]
EQUITY
29414B104
593
255.69
151,624.17
1.5
SAMSARA INC-CL A [IOT]
EQUITY
79589L106
6,000
25.21
151,260.00
1.5
TRADE DESK INC/THE -CLASS A [TTD]
EQUITY
88339J105
1,923
78.15
150,282.45
1.4
AIRBNB INC-CLASS A [ABNB]
EQUITY
009066101
1,087
137.21
149,147.27
1.4
FACTSET RESEARCH SYSTEMS INC [FDS]
EQUITY
303075105
339
437.26
148,231.14
1.4
CADENCE DESIGN SYS INC [CDNS]
EQUITY
127387108
631
234.30
147,843.30
1.4
BOSTON SCIENTIFIC CORP [BSX]
EQUITY
101137107
2,796
52.80
147,628.80
1.4
CONOCOPHILLIPS [COP]
EQUITY
20825C104
1,227
119.80
146,994.60
1.4
RLI CORP [RLI]
EQUITY
749607107
1,072
135.89
145,674.08
1.4
ATLASSIAN CORP-CL A [TEAM]
EQUITY
049468101
722
201.51
145,490.22
1.4
INTUIT INC [INTU]
EQUITY
461202103
284
510.94
145,106.96
1.4
INTEL CORP [INTC]
EQUITY
458140100
4,074
35.55
144,830.70
1.4
ALPHABET INC-CL C [GOOG]
EQUITY
02079K107
1,096
131.85
144,507.60
1.4
NVIDIA CORP [NVDA]
EQUITY
67066G104
332
434.99
144,416.68
1.4
LULULEMON ATHLETICA INC [LULU]
EQUITY
550021109
374
385.61
144,218.14
1.4
ASGN INC [ASGN]
EQUITY
00191U102
1,764
81.68
144,083.52
1.4
ALPHABET INC-CL A [GOOGL]
EQUITY
02079K305
1,101
130.86
144,076.86
1.4
KKR & CO INC [KKR]
EQUITY
48251W104
2,324
61.60
143,158.40
1.4
STEEL DYNAMICS INC [STLD]
EQUITY
858119100
1,333
107.22
142,924.26
1.4
MASTERCARD INC - A [MA]
EQUITY
57636Q104
361
395.91
142,923.51
1.4
SERVICENOW INC [NOW]
EQUITY
81762P102
255
558.96
142,534.80
1.4
GITLAB INC-CL A [GTLB]
EQUITY
37637K108
3,149
45.22
142,397.78
1.4
META PLATFORMS INC-CLASS A [META]
EQUITY
30303M102
473
300.21
141,999.33
1.4
MICROSOFT CORP [MSFT]
EQUITY
594918104
447
315.75
141,140.25
1.4
TRADEWEB MARKETS INC-CLASS A [TW]
EQUITY
892672106
1,754
80.20
140,670.80
1.3
ADOBE INC [ADBE]
EQUITY
00724F101
275
509.90
140,222.50
1.3
ALNYLAM PHARMACEUTICALS INC [ALNY]
EQUITY
02043Q107
789
177.10
139,731.90
1.3
PIONEER NATURAL RESOURCES CO [PXD]
EQUITY
723787107
607
229.55
139,336.85
1.3
TERADYNE INC [TER]
EQUITY
880770102
1,382
100.46
138,835.72
1.3
DROPBOX INC-CLASS A [DBX]
EQUITY
26210C104
5,084
27.23
138,437.32
1.3
SALESFORCE INC [CRM]
EQUITY
79466L302
681
202.78
138,093.18
1.3
INTUITIVE SURGICAL INC [ISRG]
EQUITY
46120E602
472
292.29
137,960.88
1.3
ROBLOX CORP -CLASS A [RBLX]
EQUITY
771049103
4,763
28.96
137,936.48
1.3
CONSOLIDATED EDISON INC [ED]
EQUITY
209115104
1,609
85.53
137,617.77
1.3
AGILON HEALTH INC [AGL]
EQUITY
00857U107
7,717
17.76
137,053.92
1.3
MONGODB INC [MDB]
EQUITY
60937P106
396
345.86
136,960.56
1.3
TWILIO INC - A [TWLO]
EQUITY
90138F102
2,337
58.53
136,784.61
1.3
GE HEALTHCARE TECHNOLOGY [GEHC]
EQUITY
36266G107
2,002
68.04
136,216.08
1.3
MONDAY.COM LTD [MNDY]
EQUITY
M7S64H106
854
159.22
135,973.88
1.3
PINNACLE FINANCIAL PARTNERS [PNFP]
EQUITY
72346Q104
2,021
67.04
135,487.84
1.3
ZIFF DAVIS INC [ZD]
EQUITY
48123V102
2,127
63.69
135,468.63
1.3
S&P GLOBAL INC [SPGI]
EQUITY
78409V104
370
365.41
135,201.70
1.3
COLGATE-PALMOLIVE CO [CL]
EQUITY
194162103
1,897
71.11
134,895.67
1.3
PROCTER & GAMBLE CO/THE [PG]
EQUITY
742718109
923
145.86
134,628.78
1.3
MSCI INC [MSCI]
EQUITY
55354G100
262
513.08
134,426.96
1.3
CREDIT ACCEPTANCE CORP [CACC]
EQUITY
225310101
292
460.12
134,355.04
1.3
PROLOGIS INC [PLD]
EQUITY
74340W103
1,166
112.21
130,836.86
1.3
PPL CORP [PPL]
EQUITY
69351T106
5,547
23.56
130,687.32
1.3
DOXIMITY INC-CLASS A [DOCS]
EQUITY
26622P107
6,157
21.22
130,651.54
1.3
TRANSUNION [TRU]
EQUITY
89400J107
1,809
71.79
129,868.11
1.2
JOHNSON & JOHNSON [JNJ]
EQUITY
478160104
833
155.75
129,739.75
1.2
SYNCHRONY FINANCIAL [SYF]
EQUITY
87165B103
4,206
30.57
128,577.42
1.2
ZOOMINFO TECHNOLOGIES INC [ZI]
EQUITY
98980F104
7,807
16.40
128,034.80
1.2
NETFLIX INC [NFLX]
EQUITY
64110L106
339
377.60
128,006.40
1.2
FIRST AMERICAN FINANCIAL [FAF]
EQUITY
31847R102
2,256
56.49
127,441.44
1.2
COMMERCIAL METALS CO [CMC]
EQUITY
201723103
2,570
49.41
126,983.70
1.2
AGILENT TECHNOLOGIES INC [A]
EQUITY
00846U101
1,134
111.595
126,548.73
1.2
SBA COMMUNICATIONS CORP [SBAC]
EQUITY
78410G104
625
200.17
125,106.25
1.2
ROKU INC [ROKU]
EQUITY
77543R102
1,755
70.59
123,885.45
1.2
SPIRIT REALTY CAPITAL INC [SRC]
EQUITY
84860W300
3,680
33.53
123,390.40
1.2
DELTA AIR LINES INC [DAL]
EQUITY
247361702
3,258
37.00
120,546.00
1.2
SILICON LABORATORIES INC [SLAB]
EQUITY
826919102
1,028
115.89
119,134.92
1.1
ETSY INC [ETSY]
EQUITY
29786A106
1,830
64.58
118,181.40
1.1
INTELLIA THERAPEUTICS INC [NTLA]
EQUITY
45826J105
3,695
31.62
116,835.90
1.1
THOUGHTWORKS HOLDING INC [TWKS]
EQUITY
88546E105
28,383
4.08
115,802.64
1.1
AES CORP [AES]
EQUITY
00130H105
7,560
15.20
114,912.00
1.1
Total
--
--
--
--
--
10,422
99.8
Cash and Other Assets Less Liabilities
--
--
--
--
--
--
0.2
Total Net Assets
--
--
--
--
--
--
100%
Sector Allocation
As of 8/31/2023
Human Capital Factor Unconstrained ETF (HAPY)
Human Capital Factor Unconstrained Index
Information Technology
HAPY: 33.1%
Benchmark: 33.1%
Financials
HAPY: 17.1%
Benchmark: 17.2%
Communication Services
HAPY: 13.3%
Benchmark: 13.3%
Health Care
HAPY: 13.2%
Benchmark: 13.2%
Industrials
HAPY: 3.9%
Benchmark: 3.9%
Real Estate
HAPY: 3.9%
Benchmark: 3.9%
Consumer Discretionary
HAPY: 3.8%
Benchmark: 3.8%
Utilities
HAPY: 3.8%
Benchmark: 3.8%
Energy
HAPY: 2.7%
Benchmark: 2.7%
Materials
HAPY: 2.6%
Benchmark: 2.6%
Consumer Staples
HAPY: 2.6%
Benchmark: 2.6%
HAPY: Human Capital Factor Unconstrained ETF
Benchmark: Human Capital Factor Unconstrained Index
Investment Team

The Fund employs an indexing investment approach designed to track the performance of the Human Capital Factor Unconstrained Index (“The Index”). The Fund invests at least 80% of its total assets in securities that are included in the Index.
The Index is designed to deliver exposure to equity securities of large cap U.S. companies that demonstrate high employee engagement, based on scores produced by Irrational Capital LLC (“Irrational Capital” or the “Index Provider”). Large cap companies are defined by the Fund as those with market capitalizations over $1 billion at the time of Index reconstitution. The Index is equally weighted and composed of approximately 70 to 100 companies with top “Human Capital Factor” scores at the time of Index reconstitution.
Harbor Capital serves as the investment adviser.
Documents
Name
Date
Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. Harbor ETFs are new and have limited operating history to judge.
Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.
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. 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. The Fund relies on the Index provider's methodology in assessing whether a company may be considered a corporate culture leader. There is no guarantee that the construction methodology will accurately assess a company to include or exclude it from the index which could have an adverse effect on the Fund's returns. The Fund's assets may be concentrated in a particular sector or industries to the extent the Index is concentrated and is subject 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.
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.
Bid/Ask Mid Price: the midpoint between the highest bid and the lowest offer, as of the time that the Fund’s NAV is calculated, typically 4 p.m. Eastern Time.
Premium/Discount ($): the difference between the Fund’s market price and NAV, expressed as a percentage of NAV. A premium is the amount that the Fund is trading above the reported NAV. A discount is the amount that the Fund is trading below the reported NAV.
30-Day Median Bid/Ask Spread: calculated by identifying national best bid and national best offer ("NBBO") for each fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage (rounded to the nearest hundredth).
Weighted Average Market Capitalization: The average size of the companies in a portfolio or index as measured by the market value of outstanding shares.
Price/Book: The price-to-book (P/B) ratio evaluates a firm's market value relative to its book value.
Adjusted Trailing P/E Ratio: The Adjusted Trailing P/E (Price/Earnings) Ratio is the closing stock price divided by the sum of the last 12 months actual EPS.
% EPS Growth – Past 3 year: Earnings per share refers to the bottom-line measure of a company’s profitability defined as net income divided by the number of outstanding shares.
Return on Equity: Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity.
Forecasted P/E Ratio: a measure of the P/E (price-to-earnings) ratio using forecasted earnings for the P/E calculation.
Alpha refers to excess returns earned on an investment.
Irrational Capital LLC is a third-party index provider to the Fund. The Fund is managed by Harbor Capital Advisors, Inc.
The Morningstar Medalist Ratings are shown for funds that have received a rating of Gold, Silver, or Bronze The funds shown without Medalist Ratings may not have received a Medalist Rating or may have received lower ratings.
The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/.
The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.
©2023 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.