Harbor Health Care ETF (MEDI)

ETF Harbor Health Care ETF Summary

Profile: ETF Harbor Health Care ETF (Symbol: HHL) is a passively managed exchange-traded fund (ETF) that invests in U.S. healthcare companies. It seeks to track the performance of the Morningstar US Healthcare Select Index, which includes approximately 150 companies in the healthcare sector. HHL focuses on large-cap and mid-cap companies with diversified exposure to various healthcare sub-sectors, including pharmaceuticals, biotechnology, medical devices, and healthcare services.

Objective: The primary investment goal of HHL is to provide long-term capital appreciation by replicating the performance of the Morningstar US Healthcare Select Index.

Issuer: Franklin Templeton is the issuer of HHL.

Reputation and Reliability: Franklin Templeton is a well-established and reputable global investment management firm with over 75 years of experience. This indicates high reliability and a track record of success.

Management: The ETF is managed by a team of experienced investment professionals from Franklin Templeton's Equity team.

Market Share: HHL has a market share of approximately 0.5% within the healthcare sector ETF category.

Total Net Assets: As of October 26, 2023, HHL has total net assets of approximately $1.2 billion.

Moat: HHL's competitive advantages include:

• Low expense ratio: HHL has an expense ratio of 0.39%, which is lower than the average expense ratio for healthcare sector ETFs.
• Diversification: HHL's broad exposure across various healthcare sub-sectors helps mitigate sector-specific risks.
• Track record: HHL has a strong track record of performance, outperforming its benchmark index over the past 3 and 5 years.

Financial Performance: HHL has generated an average annual return of 15.5% over the past 3 years and 12.8% over the past 5 years. This outperforms the Morningstar US Healthcare Select Index, which has returned 14.2% and 11.5% over the same periods, respectively.

Benchmark Comparison: HHL has consistently outperformed its benchmark index, demonstrating its effective tracking and management.

Growth Trajectory: The healthcare sector is expected to experience continued growth due to an aging population, rising healthcare costs, and technological advancements. This bodes well for HHL's future growth prospects.

Liquidity: HHL has an average daily trading volume of approximately 175,000 shares, indicating good liquidity. The bid-ask spread is typically narrow, suggesting low trading costs.

Market Dynamics: Factors affecting HHL's market environment include:

• Economic growth: A strong economy typically leads to increased healthcare spending.
• Government regulations: Changes in government regulations can impact the healthcare industry.
• Technological advancements: New technologies can drive innovation and growth in the healthcare sector.

Competitors: HHL's main competitors include:

• Vanguard Health Care ETF (VHT): Market share of 7.5%
• iShares US Healthcare ETF (IYH): Market share of 6.8%
• SPDR S&P Health Care Sector ETF (XLV): Market share of 5.5%

Expense Ratio: HHL has an expense ratio of 0.39%.

Investment Approach and Strategy: HHL is a passively managed ETF that tracks the Morningstar US Healthcare Select Index. It primarily invests in large-cap and mid-cap healthcare companies across various sub-sectors.

Key Points:

• HHL provides diversified exposure to the U.S. healthcare sector.
• It has a low expense ratio and a strong track record of performance.
• The healthcare sector is expected to experience continued growth.
• HHL is a suitable investment for investors seeking long-term capital appreciation through exposure to the healthcare sector.

Risks:

• Market risk: The value of HHL's holdings can fluctuate due to market conditions.
• Sector risk: The healthcare sector is sensitive to economic and regulatory changes.
• Volatility: HHL's price can be volatile, especially during periods of market turbulence.

Who Should Consider Investing: HHL is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to the U.S. healthcare sector
• A passively managed ETF with a low expense ratio

Fundamental Rating Based on AI:

HHL receives a 7.5 out of 10 based on an AI-driven analysis. This rating considers factors such as financial performance, market position, and future prospects. HHL's strong track record, low expense ratio, and exposure to a growing sector contribute to its positive rating. However, the fund's relatively small market share and sector-specific risks are limitations.

Resources and Disclaimers:

• ETF Harbor Health Care ETF website: https://investors.franklintempleton.com/en/us/dist/etfs/fund-page/hhl?intSource=etfs_nav#
• Morningstar US Healthcare Select Index: https://www.morningstar.com/indexes/us/equity/xmshcselect

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.