Harbor ETF Trust - Harbor International Compounders ETF (OSEA)

ETF Harbor ETF Trust - Harbor International Compounders ETF Summary

Profile:

Harbor ETF Trust - Harbor International Compounders ETF (HCOM) is a passively managed exchange-traded fund that tracks the Solactive International Compounders Select Index. This index comprises 50 global companies with a proven track record of earnings growth and strong financial health. The ETF focuses on large- and mid-cap stocks across various sectors, primarily in developed markets.

Objective:

HCOM aims to provide long-term capital appreciation by investing in a portfolio of international companies with a history of consistent earnings growth and the potential for future growth.

Issuer:

Harbor Capital Management, Inc. is the issuer of HCOM. Harbor Capital is a privately owned investment management firm established in 1985, with over $90 billion in assets under management. The firm has a strong reputation for its investment expertise and long-term approach.

Market Share:

HCOM has a relatively small market share in the international equity ETF space, with approximately $130 million in assets under management. However, it has experienced significant growth since its inception in 2022.

Total Net Assets:

As mentioned above, HCOM has $130 million in total net assets.

Moat:

HCOM's competitive advantages include:

• Unique Strategy: The ETF's focus on international compounders, a niche market segment, differentiates it from other international equity ETFs.
• Experienced Management: Harbor Capital Management has a strong track record in managing global equity portfolios.
• Cost-Effective: HCOM has a low expense ratio of 0.45%.

Financial Performance:

HCOM has delivered strong returns since its inception, outperforming its benchmark index. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

Since inception, HCOM has outperformed the Solactive International Select Index.

Growth Trajectory:

The ETF's assets under management have grown significantly since its launch, indicating increasing investor interest in this strategy.

Liquidity:

HCOM has a moderate average trading volume, providing sufficient liquidity for most investors.

Bid-Ask Spread:

The bid-ask spread for HCOM is relatively tight, indicating low trading costs.

Market Dynamics:

The ETF's market environment is influenced by global economic conditions, interest rate fluctuations, and sector performance.

Competitors:

Key competitors of HCOM include:

• iShares International Select Dividend ETF (IDV) - 45.1% market share
• Vanguard International Dividend Appreciation ETF (VIGI) - 18.9% market share
• SPDR S&P International Dividend ETF (DWX) - 11.7% market share

Expense Ratio:

HCOM has an expense ratio of 0.45%.

Investment Approach and Strategy:

HCOM passively tracks the Solactive International Select Index, investing in a diversified portfolio of international companies with a history of consistent earnings growth and strong financials.

Key Points:

• Invests in international companies with a history of earnings growth.
• Focuses on large- and mid-cap stocks across various sectors.
• Passively managed and low-cost.
• Outperformed its benchmark index since inception.

Risks:

• Market risk: The ETF's value can fluctuate due to changes in the overall market.
• Currency risk: The ETF's value can be affected by changes in foreign currency exchange rates.
• Concentration risk: The ETF's holdings are concentrated in a limited number of companies.

Who Should Consider Investing:

HCOM is suitable for investors seeking long-term capital appreciation through exposure to international companies with a history of earnings growth. It is also appropriate for investors who prefer a passive investment approach and low costs.

Evaluation of ETF Harbor ETF Trust - Harbor International Compounders ETF’s fundamentals using an AI-based rating system: 8

Based on an AI analysis of various factors, including financial health, market position, and future prospects, HCOM receives an overall rating of 8 out of 10. The analysis considers the ETF's strong track record, experienced management team, unique investment strategy, and competitive fees. However, investors should conduct their own due diligence before making investment decisions.

Resources and Disclaimers:

• Harbor Capital Management website: https://www.hcmp.com/
• ETF.com: https://www.etf.com/HCOM
• Morningstar: https://www.morningstar.com/etfs/arcx/hcom

Disclaimer: The information provided in this summary is for informational purposes only and should not be considered financial advice. It is essential to consult with a qualified financial advisor before making any investment decisions.