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OSEA Outpaces Benchmark by 377 Basis Points in November

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International equities surged in November, propelled by the prospect of a slowing pace of U.S. interest-rate hikes and the weakening of the U.S. dollar.

Optimism from the latest inflation report excited markets, brightening the outlook for global stocks. Global equities, as measured by the S&P Global BMI, advanced for the second month in a row and ended November up 7.7%. This solid performance was broadly supported, as 44 out of 49 markets advanced during the month, according to S&P Dow Jones Indices.

During the month, the Harbor International Compounders ETF (OSEA) outperformed its benchmark, the MSCI All Country World Ex. US Index, by 377 basis points. Since the fund’s inception on September 7 OSEA has returned 14.22% compared to the benchmark’s gain of 8.38%, each on a total-return basis, according to YCharts. The figures are looking at the total return level (using closing price of the security that has been adjusted to include price appreciation, dividend, distribution, and the expense ratio.

OSEA is an active, transparent ETF focused on international companies with expected sustainable earnings growth to help drive compounded long-term wealth creation. The fund is a compelling offering as the Foreign Large Growth component of any well-diversified portfolio.

The fund’s distinctive high-conviction portfolio and benchmark agnostic approach can provide advisors with the greater versatility needed given the volatility in today’s markets versus more broadly diversified funds that either track the index or take more conservative bets, according to Harbor.

OSEA seeks long-term growth of capital and invests primarily in equity securities of non-U.S. companies, including those located in emerging market countries. The active fund is sub-advised by C WorldWide Asset Management.

The C WorldWide investment team seeks to identify what they believe to be high-quality companies with consistent recurring revenues, stable free cash flows, and sustainable returns on invested capital. In seeking to identify those companies for the fund’s portfolio, the investment team conducts qualitative as Global Broad Market Index assessments of companies, including, among other criteria, each company’s business model, management, and financial and valuation metrics.

For more news, information, and analysis, visit the Market Insights Channel.

For more information, please access our website at www.harborcapital.com or contact us at 1-866-313-5549.


Important Information

All investments involve risk including the possible loss of principal. Please refer to the Fund’s prospectus for additional risks associated with the Fund. For the Fund’s prospectus and most current standardized performance, please click OSEA.

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. Past performance reflects the beneficial effect of any expense waivers or reimbursements, without which returns would have been lower. 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.

The S&P Global Broad Market Index (BMI) is a global stock index weighted by market capitalization that excludes U.S. companies.

The MSCI All Country World Index (ND) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. This unmanaged index does not reflect fees and expenses and is not available for direct investment.

A basis point is one hundredth of 1 percentage point.

Free cash flow represents the cash a company can generate after accounting for capital expenditures needed to maintain or maximize its asset base.

C Worldwide is a third-party subadvisor to the Harbor International Compounders ETF.

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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.