Harbor Capital Advisors Launches Energy Transition Strategy ETF (RENW)
July 14, 2022
CHICAGO – July 14, 2022 - Harbor Capital Advisors, Inc. (“Harbor”), a premier multi-manager investment firm offering access to innovative and specialized expertise across a range of investment strategies and vehicles, today announced the launch of the Harbor Energy Transition Strategy ETF (RENW).
The fully transparent ETF will seek to track the performance of the Quantix Energy Transition Index (the “Index”) before fees and expenses. The Index was developed by Quantix Commodities LP (“Quantix”) and is owned by Quantix Commodities Indices, LLC.
The commodities that comprise the Index serve one of the three purposes associated with the theme: (1) they are used to construct the new energy infrastructure (e.g. copper, aluminum, and silver); (2) they are “bridge fuels” that are less carbon-intensive and will provide energy between now and the net-zero state (e.g. natural gas); or (3) they incentivize investment in the new energy infrastructure (e.g. carbon credits).
Kristof Gleich, President and CIO of Harbor Capital Advisors said: “The world is undergoing a dramatic energy regime shift that has only been accelerated by recent events. We believe this will be one of the most significant macro themes in the financial markets for the next several decades. RENW is built to provide the opportunity to invest in this transition, through the commodities needed to facilitate change, as the world marches towards a net zero carbon emissions goal.”
“As we continue our pursuit of delivering powerful and forward-looking investment solutions to meet the growing needs of our clients and investors, we are excited to bring this compelling strategy to market and are thrilled to be partnering again with Don Casturo and his team at Quantix. Their background and extensive experience investing, trading, and developing innovative commodities strategies at Quantix and previously at Goldman Sachs helps make them the ideal partner in managing this strategy for our clients.” added Gleich.
Quantix Commodities, the subadvisor to the RENW, is a commodities focused asset manager specializing in the development and management of commodities-based investment strategies. The firm is an industry leader in delivering innovative and comprehensive commodity investment solutions to the marketplace.
“The investment in infrastructure required to build a new energy system is massive, and it will fundamentally change the commodities landscape. The Quantix Energy Transition index offers exposure for investors seeking to capture this evolutionary theme. We are pleased to partner with Harbor in bringing this cost-effective, exciting new ETF to market.” said Don Casturo, Founding Partner & CIO at Quantix.
The launch of RENW expands Harbor’s existing suite of ETFs to eight with additional offerings in the commodity, equity, fixed income, and thematic categories.
Harbor Capital specializes in identifying and partnering with best-in-class specialists in investment management. Managers and investment strategies are chosen based on the results of a rigorous and robust evaluation process, which Harbor defines as its Alpha Edge due diligence methodology.
Harbor applies these principles to all of their investment offerings including ETFs—delivering powerful, compelling, and forward-looking strategies to the marketplace. Each is powered by specialized expertise, built for today’s investor, and leverage the distinct characteristics of ETFs.
The Quantix Energy Transition index
The Quantix Energy Transition Index (QET) was developed by Quantix with the objective of providing diversified exposure to the building blocks of the accelerating transition from carbon-intensive energy sources to less carbon intensive sources of energy using commodity futures. Commodity futures that provide exposure to the energy transition theme are considered component candidates for inclusion in the Index. Examples of component commodity candidates include copper, aluminum, nickel, zinc, lead, natural gas, silver, palladium, platinum, soybean oil, ethanol, emissions – European Union Allowances (EUA), and emissions – California Carbon Allowances (CCA). The selection of commodities is subject to periodic review by Quantix Commodities Indices (QCI). Under normal conditions, the Index maintains exposure to at least 10 commodities from its eligible universe in the United States (U.S.), Canada, United Kingdom (U.K.) and other European exchanges. Commodity futures from the component candidates are selected for the Index and weighted based on QCI’s quantitative methodology. Under normal circumstances, the Index is rebalanced on a monthly basis. The index listed is unmanaged and does not reflect fees and expenses and is not available for direct investment.
About Harbor Capital
Harbor offers a diverse family of cost-aware investment solutions managed by institutional-caliber firms. We source talented investment teams to manage portfolios and apply a rigorous fiduciary oversight program to monitor their performance and investment decisions. Harbor had combined assets under management of approximately $54.7 billion as of March 31, 2022. For more information, visit www.harborcapital.com.
All investments involve risk including the possible loss of principal.
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.
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.
Commodity and Commodity Linked Derivative Risk: The Fund has exposure to commodities through its and/or the Subsidiary’s investments in commodity-linked derivative instruments. 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. The Fund is non-diversified and may invest a greater concentrate of its assets in a particular sector of the commodities market (such as metal, gas or emissions products). As a result, the Fund may be more susceptible to risks associated with those sectors. Authorized Participant Concentration/Trading Risk: Only authorized participants (“APs”) may engage in creation or redemption transactions directly with the Fund. Energy Transition Risk: The commodities included in the Index may become less representative of energy transition trends over time and the Fund’s investments may be significantly impacted by government and corporate policies. Foreign Currency Risk: Because the Index may include futures contracts denominated in foreign currencies, the Fund could be subject to currency risk.
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.
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.
Quantix Commodities LP. is a third-party subadvisor to the Harbor Energy Transition Strategy ETF.