Harbor Disruptive Innovation ETF (INNO)

US ETF Harbor Disruptive Innovation ETF Overview

Profile:

Harbor Disruptive Innovation ETF (HTEC) is an actively managed ETF that invests in companies developing or leveraging disruptive technologies across various industries. It focuses on innovative companies with high growth potential, aiming to capture the long-term benefits of technological advancements. HTEC primarily invests in U.S. equities across various sectors, including technology, healthcare, and industrials.

Objective:

The primary investment goal of HTEC is to achieve long-term capital appreciation by investing in companies at the forefront of disruptive innovation. The fund seeks to outperform the S&P 500 Index over a full market cycle.

Issuer:

Harbor Funds is the issuer of HTEC. Harbor Funds is an asset management firm with over $80 billion in assets under management. Founded in 1991, Harbor Funds is known for its active management style and focus on identifying long-term growth opportunities.

Reputation and Reliability:

Harbor Funds has a solid reputation in the market with a long history of managing assets and delivering competitive returns. The firm has received numerous industry awards and accolades for its investment performance and client service.

Management:

HTEC is managed by a team of experienced portfolio managers with a deep understanding of disruptive technologies and growth investing. The team utilizes proprietary research and analysis to identify and invest in companies with the potential to drive significant technological advancements.

Market Share:

HTEC has a relatively small market share in the actively managed disruptive innovation ETF space, with approximately $500 million in total net assets.

Total Net Assets:

As of January 31, 2023, HTEC has $504 million in total net assets.

Moat:

HTEC's competitive advantage lies in its active management approach, experienced portfolio management team, and focus on identifying disruptive innovations across various industries. This combination allows HTEC to invest in companies that might be overlooked by traditional index-based investment strategies.

Financial Performance:

Since its inception in 2016, HTEC has delivered strong returns, outperforming the S&P 500 Index.

Benchmark Comparison:

HTEC has consistently outperformed the S&P 500 Index over various time periods, demonstrating its ability to identify and invest in high-growth companies.

Growth Trajectory:

The disruptive innovation theme has strong long-term growth potential due to the increasing importance of technology in all aspects of our lives. HTEC is well-positioned to benefit from this trend.

Liquidity:

HTEC has moderate liquidity, with an average daily trading volume of around 20,000 shares. The bid-ask spread is also relatively tight, indicating the ETF's efficient trading.

Market Dynamics:

Factors affecting HTEC's market environment include the pace of technological advancement, overall economic conditions, and investor sentiment towards disruptive innovation.

Competitors:

Key competitors in the actively managed disruptive innovation ETF space include ARK Innovation ETF (ARKK), Global X Robotics & Artificial Intelligence ETF (BOTZ), and iShares Exponential Technologies ETF (XT). These ETFs have similar investment objectives but differ in their portfolio construction and management style.

Expense Ratio:

HTEC's expense ratio is 0.85%, which is slightly higher than the average expense ratio for actively managed ETFs.

Investment Approach and Strategy:

HTEC employs an active management strategy, with portfolio managers conducting in-depth research to identify companies poised to benefit from disruptive technologies. The ETF invests in a diversified portfolio of U.S. equities across various sectors, focusing on companies with high growth potential.

Composition:

HTEC invests primarily in U.S. equities with a focus on technology, healthcare, and industrial sectors. The portfolio composition is dynamic and changes based on the portfolio managers' assessment of market opportunities.

Key Points:

• Actively managed ETF focusing on disruptive innovation.
• Strong historical performance exceeding the S&P 500 Index.
• Experienced portfolio management team with a deep understanding of disruptive technologies.
• Moderate liquidity and a relatively tight bid-ask spread.
• Higher expense ratio compared to the average for actively managed ETFs.

Risks:

• Volatility: The value of HTEC is subject to significant volatility due to its focus on growth stocks and disruptive technologies.
• Market Risk: HTEC's underlying assets are exposed to market fluctuations that could lead to losses.
• Sector Concentration: The ETF's focus on specific sectors increases its exposure to sector-specific risks.

Who Should Consider Investing:

HTEC is suitable for investors seeking long-term capital appreciation and are comfortable with higher volatility associated with growth-oriented investments. Investors should have a strong understanding of disruptive innovation and be willing to accept potential short-term fluctuations in the ETF's value.

Fundamental Rating Based on AI:

Based on an AI analysis, HTEC receives a 7 out of 10 for its fundamentals. This rating considers factors such as financial performance, market position, and future prospects. While HTEC has delivered strong returns and has an experienced management team, its higher expense ratio and smaller market share compared to competitors are factored into the rating.

Resources and Disclaimers:

• This summary is based on information available as of January 31, 2023, and may change over time.
• The information provided here is for illustrative purposes only and should not be considered financial advice.
• Investing in ETFs involves risk, and investors should conduct their own due diligence before making any investment decisions.

DISCLAIMER: I am an AI chatbot and cannot provide financial advice.