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Harbor Commodity All-Weather Strategy ETF Strategy Profile

Average Annual Returns as of 12/31/2023
3 Months YTD 1 Yr. 3 Yr. 5 Yr. 10 Yr. Since Inception Inception Date
Harbor Commodity All-Weather Strategy ETF (NAV) -2.38% 1.98% 1.98% N/A N/A N/A 6.54% 02/09/2022
Harbor Commodity All-Weather Strategy ETF (Market) -2.21% 1.92% 1.92% N/A N/A N/A 6.66% 02/09/2022
Bloomberg Commodity Index -4.63% -7.91% -7.91% 10.76% 7.23% -1.11% -1.82%
Bloomberg U.S. Aggregate Bond Index 6.82% 5.53% 5.53% -3.31% 1.10% 1.81% -2.76%
S&P 500 Index 11.69% 26.29% 26.29% 10.00% 15.69% 12.03% 3.81%

Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.

Shares are bought and sold at market price not net asset value (NAV). A fund’s NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. 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.

For most current performance please click here.

Differentiated Process = Differentiated Positioning & Differentiated Performance

The Harbor Commodity All-Weather Strategy ETF (HGER) represents a dynamic investment in commodities that adjusts accordingly to prevailing market conditions by closely corresponding to the Quantix Commodity Index (QCI).

The QCI is the first index designed by commodities investors for commodities investors with active weighting mechanisms that aim to take advantage of market inefficiencies.

HGER’s close correspondence to the Quantix Commodity Index (QCI) and subsequent dynamic and active approach to commodities weighting has translated to outperformance versus industry peers, the Bloomberg Commodity Index (BCOM) and other popular asset classes since HGER’s inception in early 2022.

Notably, HGER’s returns have ranked within the top decile of Morningstar’s Commodity Broad Basket category since inception and year-to-date.

HGER Percentile Rankings within Morningstar
Commodity Broad Basket Category
As of 12/31/2023
HGER Percentile Rankings within Morningstar ​ Commodity Broad Basket Category​ As of 12/31/2023​

Inception to Date: 7th percentile ranking out of 108 funds based on total returns reported as of 12/31/2023. 2023: 3rd percentile ranking out of 105 funds based on total returns reported as of 12/31/2023. See Important Information for full Morningstar rankings.

Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.

Furthermore, since its February 2022 inception, HGER has cumulatively outperformed the Bloomberg Commodity Index by 16.15%. HGER has also outpaced the Bloomberg US Aggregate Bond and S&P 500 Indices by 17.88% and 5.43%, respectively.

At its core, the Harbor Commodity All-Weather Strategy ETF uses active weighting mechanisms used in an effort to exploit the structural flaws of the Bloomberg Commodity Index and provide a hedge against inflation.

HGER, BCOM, S&P 500 & Bloomberg US Agg Bond
Indices Cumulative Return
2/9/2022 - 12/31/2023 (Computed Daily)
HGER, BCOM, S&P 500 & Bloomberg US Agg Bond ​ Indices Cumulative Return​ 2/9/2022 - 12/31/2023 (Computed Daily)​

Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.

HGER vs. BCOM
Sector Weights as of 12/31/2023
HGER vs. BCOM. Sector Weights as of 12/31/2023.

Source: Morningstar Direct.

Quantix Commodities

Matthew Schwab
Portfolio Manager

Founded in 2018 and headquartered in Greenwich, CT, Quantix Commodities boasts a seasoned investment team averaging approximately 20 years of experience investing in commodities.

Prior to founding Quantix, the team worked side by side for seven years at Goldman Sachs to run one of the largest commodity index portfolios, developed innovative trading techniques seeking to outperform commodity indices, and developed bespoke investor solutions.

Leveraging this expertise and experience in enhanced commodity index investing, the team developed the Quantix Commodity Index and then the Harbor Commodity All-Weather Strategy ETF (HGER).

The index employs a dynamic approach that seeks to represent a more thoughtful approach to commodities investing.

Share Class Institutional
Cusip 41151J505
Listed Exchange NYSE
Gross Expense Ratio 0.68%
Lead Market Maker Jane Street
Inception Date 2/9/2022
Manager Name Quantix Commodities LP
Benchmark Quantix Commodity Total Return Index
Rebalance Frequency Quarterly
Morningstar Category Commodities Broad Basket
Process

The Bloomberg Commodity Index (BCOM) often serves as a primary source of investors’ broader-based commodities exposure. However, the Quantix Commodity Index (QCI) has exhibited outperformance relative to BCOM since the index inception given an allocation process that considers each commodity’s inflation sensitivity and roll yield dynamics, and also incorporates a dynamic adjustment of its gold weighting for determined inflationary regimes.

1 Calculate the ‘Economic Significance’ of each commodity in the universe in order to understand their importance to the real economy
2 Calculate the Quality Score of each commodity
3 Reweight the Economic Significance base weights according to the Quality Score
4 Ensure diversification within the QCI to provide broad based commodity exposure and remain highly liquid and tradeable
5 A proprietary Quantix Scarcity Debasement Indicator adjusts the gold weight for the determined type of inflationary regime
To learn more about HGER,
please visit our website or reach out to a Harbor
representative at 1-800-427-2677.


Important Information

Risks

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.

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. A non-diversified Fund may invest a greater percentage of its assets in securities of a single issuer, and/or invest in a relatively small number of issuers, it is more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio.

Commodity Risk: The Fund has exposure to commodities through its and/or the Subsidiary’s investments in commodity-linked derivative instruments. Authorized Participant Concentration/Trading Risk: Only authorized participants (“APs”) may engage in creation or redemption transactions directly with the Fund. Commodity-Linked Derivatives Risk: The Fund’s investments in commodity-linked derivative instruments (either directly or through the Subsidiary) and the tracking of an Index comprised of commodity futures may subject the Fund to significantly greater volatility than investments in traditional securities.

ETFs are subject to capital gains tax and taxation of dividend income. However, ETFs are structured in such a manner that taxes are generally minimized for the holder of the ETF. An ETF manager accommodates investment inflows and outflows by creating or redeeming “creation units,” which are baskets of assets. As a result, the investor usually is not exposed to capital gains on any individual security in the underlying portfolio. However, capital gains tax may be incurred by the investor after the ETF is sold.

Benchmarks

The Bloomberg Commodity Index (“BCOM”) is designed to be a highly liquid and diversified benchmark for commodity investments via futures contracts. The Bloomberg US Aggregate Bond Index is an unmanaged index of investment-grade fixed-rate debt issues with maturities of at least one year. The S&P 500 Index is an unmanaged index generally representative of the U.S. market for large capitalization equities. The Quantix Commodity Index (“QCI”) is calculated on a total return basis, which combines the returns of the futures contracts with the returns on cash collateral invested in 13-week U.S. Treasury Bills. The Quantix Commodity Index was developed by Quantix Commodities LP and is owned by Quantix Commodities Indices LLC. These indices are unmanaged and do not reflect fees and expenses and are not available for direct investment.

Disclosures

© Morningstar 2024. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted 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, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results.

The Morningstar Rankings are based on total returns, with distributions reinvested and operating expenses deducted. Morningstar does not take into account sales charges. Harbor Commodity All-Weather Strategy ETF was ranked against Morningstar’s Commodity Broad Basket category, quarterly, over the following time periods for absolute rank: 2 out of 105 investments in the category for the 1-year period as of 12/31/2023. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100.

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.

Forecast and estimates are based on hypothetical assumptions and for informational purposes only. This material does not constitute investment advice and should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy. The information presented does not represent the results that any particular investor may actually attain. Actual results will differ, and may differ substantially, from the hypothetical information provided.

Investors should carefully consider the investment objectives, risks, charges and expenses of a 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.

Quantix Commodities LP (“Quantix”) is a third-party subadvisor to the Harbor Commodity All-Weather Strategy ETF.

Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.

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Harbor Funds Distributors, Inc. is the Distributor of the Harbor Mutual Funds.
Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.
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Investing involves risk and the potential loss of capital.

Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. To obtain a summary prospectus or prospectus for this and other information, click here or call 800-422-1050. Read it carefully before investing.

All trademarks or product names mentioned herein are the property of their respective owners. Copyright © 2024 Harbor Capital Advisors, Inc. All rights reserved.