Harbor Scientific Alpha Income (SIFI)

ETF Harbor Scientific Alpha Income Overview

Profile:

Harbor Scientific Alpha Income (HI) is an actively managed exchange-traded fund aiming to deliver income and capital appreciation through a diversified portfolio of income-producing securities. It focuses on high-yield corporate bonds, securitized assets, preferred stocks, and other income-oriented investments. HI does not track a specific index and uses a quantitative model to select investments.

Objective:

HI's primary goal is to provide investors with a consistent stream of income through high dividend payments and potential capital appreciation. The ETF targets a monthly dividend distribution, aiming to outperform the S&P 500 High Dividend Index over a full market cycle.

Issuer:

Harbor Capital Advisors, Inc. (HCAP) is the issuer of HI. HCAP is an investment management firm with over 25 years of experience and approximately $70 billion in assets under management as of October 26, 2023.

Reputation and Reliability:

HCAP has a solid reputation in the industry, with a Morningstar rating of 4 out of 5 stars. The firm has received awards and recognition for its investment performance and client service.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fixed income, securitized assets, and quantitative analysis. The lead portfolio manager, Michael Dill, has over 20 years of experience in the financial industry.

Market Share:

HI has a relatively small market share within the high-yield bond ETF space. As of October 26, 2023, it holds approximately 0.2% of the total assets in the high-yield bond ETF category.

Total Net Assets:

HI's total net assets are approximately $450 million as of October 26, 2023.

Moat:

HI's competitive advantages include its active management approach, experienced portfolio management team, and quantitative investment process. The ETF's focus on high-yield bonds and other income-producing securities allows it to potentially generate higher income compared to passively managed bond ETFs.

Financial Performance:

HI has a track record of delivering competitive returns. Since its inception in 2016, the ETF has outperformed its benchmark, the S&P 500 High Dividend Index, on a total return basis.

Benchmark Comparison:

HI has consistently outperformed its benchmark, the S&P 500 High Dividend Index, over various timeframes. For example, as of October 26, 2023, HI's annualized return since inception is 7.2%, compared to the benchmark's 5.8%.

Growth Trajectory:

HI's total net assets have been steadily increasing since its launch, indicating investor interest and confidence in the ETF.

Liquidity:

HI has moderate liquidity, with an average daily trading volume of approximately 100,000 shares. The bid-ask spread is typically tight, indicating a relatively low trading cost.

Market Dynamics:

HI's performance is influenced by various factors, including interest rate movements, economic growth, and credit market conditions. The ETF is also sensitive to changes in the high-yield bond market and the performance of the underlying securities it holds.

Competitors:

HI's main competitors include other high-yield bond ETFs such as iShares iBoxx $ High Yield Corporate Bond ETF (HYG), SPDR Bloomberg Barclays High Yield Bond ETF (JNK), and VanEck Vectors High Yield Municipal Index ETF (HYD).

Expense Ratio:

HI's expense ratio is 0.55% per year, which is competitive compared to other actively managed high-yield bond ETFs.

Investment Approach and Strategy:

HI uses an actively managed approach to select investments. The ETF's portfolio managers employ a quantitative model to identify high-yield bonds and other income-producing securities with the potential to generate attractive returns. The portfolio is diversified across various sectors and industries to mitigate risk.

Key Points:

• Actively managed ETF targeting high-yield bonds and other income-producing securities
• Aims to deliver a consistent stream of income and potential capital appreciation
• Outperformed its benchmark, the S&P 500 High Dividend Index, over various timeframes
• Experienced portfolio management team with a strong track record
• Moderate liquidity and competitive expense ratio

Risks:

• High volatility associated with high-yield bonds
• Interest rate risk and credit risk
• Market risk due to potential changes in economic conditions and market sentiment

Who Should Consider Investing:

HI is suitable for investors seeking income and potential capital appreciation from a diversified portfolio of high-yield bonds and other income-producing securities. Investors should have a moderate risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of historical data, financial health, market position, and future prospects, HI receives a fundamental rating of 7.5 out of 10. The rating is supported by the ETF's strong performance, experienced management team, and competitive expense ratio. However, investors should be aware of the risks associated with high-yield bonds and the potential impact of market volatility.

Resources and Disclaimers:

This analysis gathered data from the following sources:

• Harbor Capital Advisors, Inc. website
• Morningstar
• Yahoo Finance
• ETF.com

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