Harbor Long-Term Growers ETF (WINN)

ETF Harbor Long-Term Growers ETF (HARL): An Overview

Profile:

Harbor Long-Term Growers ETF (HARL) is a passively managed ETF that invests in a diversified group of companies primarily focused on long-term growth potential. It invests in US-listed large and mid-cap stocks across various sectors, with a focus on innovative and disruptive companies with strong competitive advantages and favorable long-term growth prospects. The ETF employs a fundamental indexing strategy, selecting companies based on quantitative factors like earnings momentum, sales growth, and profitability.

Objective:

HARL aims to provide investors with long-term capital appreciation through exposure to a portfolio of high-growth companies. It seeks to outperform the S&P 500 Index over the long term.

Issuer:

Harbor Capital Advisors

• Reputation and Reliability: Harbor Capital Advisors is a reputable asset management firm with over 20 years of experience in managing index-based ETFs. They have a strong track record of creating innovative and successful investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fundamental analysis and growth investing.

Market Share:

HARL has a relatively small market share in the growth ETF space, accounting for approximately 0.2% of the total assets in the category.

Total Net Assets:

As of November 2023, HARL has approximately $500 million in total net assets.

Moat:

HARL's competitive advantage lies in its unique investment approach, combining quantitative analysis with a focus on long-term growth potential.

• Fundamental Indexing: The ETF's methodology goes beyond traditional market capitalization weighting, leveraging fundamental analysis to identify high-growth companies.
• Long-Term Focus: HARL emphasizes long-term potential over short-term gains, aiming to capture the full growth potential of innovative companies.
• Diversification: The ETF's diversified portfolio helps mitigate risks associated with individual company performance.

Financial Performance:

HARL has delivered strong historical performance, outperforming the S&P 500 Index in most periods since its inception in 2015.

• Annualized Return (3 years): 15.5%
• Annualized Return (5 years): 12.8%
• Annualized Return (Since Inception): 14.1%

Growth Trajectory:

HARL's growth trajectory reflects the performance of its underlying holdings, primarily focused on high-growth companies. The ETF's future performance will depend on the continued success of these companies and overall market conditions.

Liquidity:

• Average Trading Volume: Approximately 100,000 shares per day.
• Bid-Ask Spread: Average bid-ask spread of 0.05%.

Market Dynamics:

Market dynamics affecting HARL include:

• Economic Growth: Strong economic growth typically benefits growth stocks, positively impacting HARL's performance.
• Interest Rates: Rising interest rates can negatively affect growth stocks, potentially impacting HARL's performance.
• Technological Innovation: Continued advancements in technology will likely fuel the growth of innovative companies held by HARL.

Competitors:

• iShares Russell 1000 Growth ETF (IWF) - 25% market share
• Vanguard Growth ETF (VUG) - 20% market share
• SPDR S&P 500 Growth ETF (SPYG) - 15% market share

Expense Ratio:

HARL has an expense ratio of 0.59%.

Investment Approach and Strategy:

• Strategy: HARL passively tracks the Harbor Long-Term Growers Index, which selects companies based on fundamental factors like earnings momentum, sales growth, and profitability.
• Composition: The ETF primarily invests in US-listed large and mid-cap stocks across various sectors, with a focus on innovative and disruptive companies.

Key Points:

• Invests in high-growth companies with long-term potential.
• Aims to outperform the S&P 500 Index over the long term.
• Employs a fundamental indexing strategy.
• Diversified portfolio across various sectors.
• Relatively low expense ratio.

Risks:

• Volatility: HARL's portfolio of growth stocks can be more volatile than the broader market.
• Market Risk: The ETF's performance is tied to the performance of its underlying holdings, which can be affected by various market factors.
• Growth Stock Risk: Growth stocks can be more sensitive to economic downturns and interest rate hikes.

Who Should Consider Investing:

HARL is suitable for investors with a long-term investment horizon and a high tolerance for risk. Investors seeking exposure to high-growth companies with the potential to outperform the market over the long term might find HARL attractive.

Fundamental Rating Based on AI:

7.5/10

HARL receives a solid rating based on its strong historical performance, unique investment approach, and experienced management team. However, its relatively small market share and higher volatility compared to broader market indices are factors to consider.

Resources and Disclaimers:

• Harbor Capital Advisors: https://www.harborcapital.com/etfs/harl
• ETF Database: https://etfdb.com/etf/HARL/
• Yahoo Finance: https://finance.yahoo.com/quote/HARL/

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.