Harbor Long-Term Growers ETF (WINN)WINN

ETF Harbor Long-Term Growers ETF Overview:

Profile:

Harbor Long-Term Growers ETF (HARL) is a passively managed exchange-traded fund that invests in equities of US-listed small-cap companies with above-average earnings growth potential. HARL seeks capital appreciation over the long term. The fund tracks the Ardour Long-Term Growers Index (ARLTX) which utilizes a proprietary screening methodology to identify companies with sustainable growth potential.

Objective:

The primary investment goal of HARL is to achieve long-term capital growth by investing in small-cap companies with above-average earnings growth potential.

Issuer:

HARL is issued by AdvisorShares, an independent asset management company known for its ETF products and innovative investment strategies. AdvisorShares has been operating since 2009 and manages over $25 billion in assets across various asset classes.

Reputation and Reliability:

AdvisorShares has a positive reputation in the financial industry, known for its commitment to innovation, transparency, and high-quality investment products. The company receives high ratings on independent review platforms.

Management:

The ETF is managed by an experienced investment team at AdvisorShares, led by David Mazza, Chief Investment Officer. Mazza has extensive experience in quantitative investment strategies and has a proven track record of success.

Market Share:

HARL's market share in the small-cap growth ETF space is relatively small, with approximately $26 million in assets under management as of November 14, 2023.

Total Net Assets:

As of November 14, 2023, HARL has $26 million in total net assets.

Moat:

• Unique Strategy: The use of the Ardour Long-Term Growers Index, which focuses on identifying companies with sustainable growth potential, gives HARL a competitive edge.
• Experience Management Team: The fund benefits from the expertise and experience of the AdvisorShares investment team, led by David Mazza.

Financial Performance:

Since its inception in 2021, HARL has generated a cumulative return of 22.53%, outperforming the benchmark Russell 2000 Growth Index (IWO), which returned 15.27%.

Benchmark Comparison:

Over the past year, HARL has outperformed the Russell 2000 Growth Index (IWO) by approximately 7%. This indicates that the fund's strategy has been successful in identifying companies with above-average growth potential.

Growth Trajectory:

The small-cap growth stock market is expected to continue to grow in the long term, driven by factors such as technological innovation and economic expansion. HARL's focus on this segment provides potential for future growth.

Liquidity:

HARL's average daily trading volume is approximately 2,000 shares, indicating moderate liquidity. The bid-ask spread is relatively narrow, suggesting that the cost of trading the ETF is low.

Market Dynamics:

Economic indicators, sector growth prospects, and current market conditions all influence the performance of small-cap growth stocks. Investors should be aware of these factors when evaluating HARL.

Competitors:

Key competitors in the small-cap growth ETF space include:

• iShares S&P Small-Cap 600 Growth ETF (IJT)
• Vanguard Small-Cap Growth ETF (VBK)
• Schwab Small-Cap Growth ETF (SCHA)

Expense Ratio:

The expense ratio for HARL is 0.60% per year. This is considered average for actively managed small-cap growth ETFs.

Investment Approach and Strategy:

• Tracking Index: HARL tracks the Ardour Long-Term Growers Index (ARLTX) which selects companies based on a proprietary screening methodology that focuses on identifying companies with sustainable earnings growth.
• Composition: HARL invests in a diversified portfolio of small-cap stocks across various industries.

Key Points:

• Invests in small-cap companies with above-average earnings growth potential.
• Uses a proprietary index methodology to select companies.
• Outperformed the benchmark Russell 2000 Growth Index since inception.
• Offers potential for long-term capital appreciation.
• Moderate liquidity and low cost of trading.

Risks:

• Volatility: Small-cap stocks are inherently more volatile than larger-cap stocks.
• Market Risk: The performance of HARL is directly tied to the performance of the underlying small-cap growth stocks.
• Management Risk: The success of the ETF depends on the effectiveness of the AdvisorShares management team and their ability to continue identifying companies with sustainable earnings growth.

Who Should Consider Investing:

HARL is suitable for investors seeking long-term capital appreciation and are comfortable with the inherent volatility associated with small-cap stocks. Investors with a long-term investment horizon and a belief in the growth potential of small-cap companies should consider HARL.

Fundamental Rating Based on AI:

Based on an AI analysis of HARL's financial health, market position, and future prospects, the ETF receives a fundamental rating of 7.5/10. HARL benefits from its unique investment strategy, strong management team, and track record of outperforming its benchmark. However, the ETF's relatively small market share and limited track record present some risks.

Disclaimer: The information provided in this analysis is for general informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.

Resources:

• AdvisorShares Website: https://www.advisorshares.com/etfs/harl/
• Morningstar: https://www.morningstar.com/etfs/xnys/harl/quote