Harbor Capital Advisors to Liquidate Small Cap Explorer ETF
July 21, 2023
CHICAGO - 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 they are liquidating the Harbor Small Cap Explorer ETF (ticker: QWST). Harbor continually reviews its range of products to ensure we are meeting the evolving needs of our clients.
Shareholders of the Fund may sell their holdings on NYSE Arca, Inc. (“NYSE Arca”) until market close on August 22, 2023. Customary brokerage charges may apply to such transactions. The Fund will stop accepting creation orders from authorized participants after market close on August 22, 2023 and will be delisted ahead of market open on August 23, 2023.
As the Fund transitions its portfolio in anticipation of making its liquidating distributions, it will deviate from the investment objective and strategies stated in its prospectus, such as by raising cash or making investments in other highly liquid assets. This may adversely affect the Fund’s performance. The Fund is expected to liquidate at the close of business on or about August 30, 2023 (the “Liquidation Date”). Shareholders who continue to hold shares of the Fund on the Liquidation Date will receive a liquidating distribution of cash in the cash portion of their brokerage accounts equal to the amount of the net asset value of their shares.
Shareholders who receive a liquidating distribution generally will recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares if shares are held in a taxable account. The Fund may or may not, depending upon the Fund’s circumstances, pay one or more dividends or other distributions prior to or along with the redemption payments. Such shareholders should consult their tax advisors about the potential tax consequences.
About Harbor Capital
Harbor is dedicated to helping clients achieve investment objectives with an active, cost-aware investing approach. For more than 35 years, our investment team has served as a guide for clients, developing portfolio strategies based on rigorous research and market analysis; sourcing select specialists and deep insights in each asset class; and evaluating performance to ensure that decisions remain in the best interests of our clients. Headquartered in Chicago, Harbor Capital Advisors had total assets under management of approximately $43 billion as of March 31, 2023. 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 may not exactly track the performance of the Index with perfect accuracy at all times. Tracking errors may occur because of pricing differences, timing and costs incurred by the fund or during times of heightened market volatility.
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.
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.
Harbor Capital and its associates do not provide legal or tax advice. Any tax-related discussion contained in this material, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in this material.
Foreside Fund Services, LLC. is the Distributor of the Harbor ETFs.