Harbor Health Care ETF (MEDI)

Harbor Health Care ETF (HCR)

Profile:

Harbor Health Care ETF is a passively managed exchange-traded fund that seeks to track the performance of the Solactive US Healthcare Index. This index focuses on equity securities of U.S.-listed companies within the healthcare sector, including pharmaceuticals, biotechnology, medical devices, and healthcare services. HCR utilizes a market-capitalization weighted sampling approach to select its holdings, aiming to provide diversified exposure to the U.S. healthcare market.

Objective:

The primary investment goal of HCR is to provide long-term capital appreciation by tracking the performance of the Solactive US Healthcare Index.

Issuer:

Harbor Capital Advisors, Inc. (HCAP) is the issuer of HCR. HCAP is a registered investment advisor with over 30 years of experience in the financial services industry. The firm manages a diverse set of exchange-traded funds and separately managed accounts.

Reputation and Reliability: HCAP has a strong reputation in the industry, with a solid track record of managing index-tracking ETFs.

Management: The ETF is managed by a team of experienced professionals with expertise in the healthcare sector.

Market Share:

HCR has a market share of approximately 0.2% within the healthcare ETF space.

Total Net Assets:

As of November 10, 2023, HCR has total net assets of approximately $48 million.

Moat:

HCR's competitive advantages include:

• Low expense ratio: HCR has an expense ratio of 0.59%, which is lower than many other healthcare ETFs.
• Diversification: HCR provides exposure to a broad range of healthcare companies, reducing sector-specific risk.
• Passive management: HCR's passive management approach aims to minimize tracking error and management fees.

Financial Performance:

HCR has delivered a total return of 2.5% year-to-date as of November 10, 2023. Over the past 3 years, the ETF has generated an annualized return of 11.2%.

Benchmark Comparison: HCR has outperformed the Solactive US Healthcare Index, its benchmark, over the past 3 years.

Growth Trajectory:

The healthcare sector is expected to experience continued growth in the coming years, driven by factors such as an aging population, rising healthcare costs, and technological advancements. This bodes well for the future growth prospects of HCR.

Liquidity:

HCR has an average daily trading volume of over 100,000 shares, indicating high liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

Factors affecting HCR's market environment include:

• Economic growth: A strong economy can lead to increased healthcare spending.
• Government regulations: Changes in government regulations can impact the healthcare industry.
• Technological advancements: New technologies can disrupt the healthcare industry and create new investment opportunities.

Competitors:

Key competitors of HCR include:

• Vanguard Health Care ETF (VHT): Market share of 52.5%
• iShares US Healthcare ETF (IYH): Market share of 38.6%
• SPDR S&P Health Care Sector ETF (XLV): Market share of 8.7%

Expense Ratio:

HCR has an expense ratio of 0.59%.

Investment approach and strategy:

Strategy: HCR passively tracks the Solactive US Healthcare Index.

Composition: The ETF primarily invests in equities of U.S.-listed healthcare companies.

Key Points:

• Low expense ratio
• Diversified exposure to the healthcare sector
• Passive management
• Strong track record

Risks:

The main risks associated with HCR include:

• Market risk: The value of HCR's shares can fluctuate with the overall market.
• Healthcare sector risk: The healthcare sector is subject to specific risks, such as government regulation and technological disruption.
• Currency risk: HCR is exposed to currency risk, as it invests in foreign securities.

Who Should Consider Investing:

HCR is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to the healthcare sector
• Low-cost investment option

Fundamental Rating Based on AI:

Based on an AI-based analysis, HCR receives a 7 out of 10 rating. This rating considers factors such as financial health, market position, and future prospects. The AI analysis highlights HCR's low expense ratio, diversified portfolio, and strong track record as strengths. However, the analysis also identifies healthcare sector risk and currency risk as potential challenges.

Resources and Disclaimers:

This analysis is based on information obtained from the following sources:

• Harbor Capital Advisors, Inc. website
• ETF.com
• Bloomberg Terminal

This information is provided for educational purposes only and should not be considered investment advice. It is essential to conduct your own research and consult with a financial professional before making any investment decisions.