Harbor Capital Advisors Launches Small Cap Explorer ETF
April 27, 2023
Harbor Capital Advisors Launches Small Cap Explorer ETF
CHICAGO – April 27, 2023 - Harbor Capital Advisors, Inc. (“Harbor”), an asset manager that curates an intentionally select suite of active ETFs from boutique managers and internally manages multi-asset and multi-manager strategies via the firm's Multi-Asset Solutions Team, today launched the Harbor Small Cap Explorer ETF (ticker: QWST).
Managed by Harbor’s Multi-Asset Solutions Team, the Harbor Small Cap Explorer ETF utilizes an actively managed multi-strategy approach as it seeks to achieve its investment objective of providing long-term growth of capital. It invests primarily in equity securities; principally common stocks of small cap companies defined as those having a market capitalization in the range of the Russell 2500® Index.
Through its rigorous manager due diligence, Harbor has selected a network of specialized asset managers to contribute concentrated allocations to the Small Cap Explorer portfolio. Harbor determines the allocations to the underlying asset managers with the goal of maximizing the portfolio’s diversification benefits and managing risk.
This is now the thirteenth actively managed, fully transparent ETF introduced by Harbor, who made its debut in the ETF market in September 2021. This offering adds to Harbor’s growing lineup of ETFs across investment themes and asset classes.
“Harbor is excited to expand its ETF offering with the launch of another strategy whose purpose is built to unlock more opportunities for today’s investors,” said Spenser Lerner, Portfolio Manager and Head of Multi-Asset Solutions, Harbor.
“We believe our multi-strategy framework and process allows us to access trends across markets, helps maximize the alpha potential of concentrated and specialized managers, and seeks to mitigate risk through our proprietary portfolio construction methodology,” said Lerner.
About Harbor Capital
Harbor Capital Advisors is an asset manager known for curating an intentionally select suite of active ETFs from boutique managers. Advisors looking for distinct and differentiated investment options for their clients’ portfolios often connect with our passionate obsession to find what we believe to be the best and bold solutions that have the potential to produce compelling, risk-adjusted returns. For more information, visit harborcapital.com.
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.
All investments involve risk including the possible loss of principal.
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’s performance may be more volatile because it may invest in issuers that are smaller companies. Because the Fund is managed pursuant to model portfolios provided by nondiscretionary Subadvisors that construct the model portfolios but have no authority to effect trades for the Fund’s portfolio, it is expected that the Advisor will effect trades on a periodic basis as the Advisor receives the model portfolios, and therefore less frequently than would typically be the case if the Fund employed discretionary subadvisors that effected trades for the Fund’s portfolio directly, which could affect the performance of the Fund. The Subadvisors’ investment styles and security recommendations may not always be complementary, and the Subadvisors' judgment about the attractiveness, value and growth potential of a particular security may be incorrect, which could affect the performance of the Fund. Since the Fund may hold foreign securities, it may be subject to greater risks than funds invested only in the U.S. These risks are more severe for securities of issuers in emerging market regions. 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. REITs may decline in value as a result of factors affecting the real estate sector including the risk that REITs are unable to generate cash flow to make distributions to unitholders and fail to qualify for favorable tax treatment.
Diversification does not assure a profit or protect against loss in a declining market.
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.
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.
The Russell 2000® Index measures the performance of the small-cap segment of the US equity universe. It is a subset of the Russell 3000® and includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Growth Index and Russell® are trademarks of Frank Russell Company. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
Alpha is a measure of risk (beta)-adjusted return.
Foreside Fund Services, LLC. is the Distributor of the Harbor Small Cap Explorer ETF.