Harbor Long-Term Growers ETF (WINN)WINN

ETF Harbor Long-Term Growers ETF Summary

Profile:

Harbor Long-Term Growers ETF (HARGU) is an actively managed ETF focused on investing in a portfolio of small-cap and mid-cap growth stocks in the United States. They aim to generate long-term capital appreciation by identifying companies with strong growth potential and disruptive technologies in their respective industries. The ETF aims to hold around 75 to 125 stocks across various sectors, with a preference for technology, healthcare, consumer discretionary, and industrials.

Objective:

The primary investment goal of HARGU is to achieve long-term capital appreciation for its investors by investing in small and mid-cap companies with strong growth potential.

Issuer:

HARGU is issued by Harbor Capital Advisors, Inc., a privately held investment management firm based in San Mateo, California.

Reputation and Reliability:

Harbor Capital Advisors has been in the business since 1994 and currently manages over $6.5 billion in assets. The firm holds a strong reputation for its actively managed portfolios, including several award-winning mutual funds.

Management:

The ETF is managed by Paul Johnson, Portfolio Manager and Chief Investment Officer of Harbor Capital Advisors, who has over 25 years of experience in investment management. The team also includes experienced analysts specializing in various sectors and conducting in-depth due diligence on potential investments.

Market Share:

HARGU's market share within the actively-managed small and mid-cap growth ETF space is relatively small. However, its actively managed approach and strong track record differentiate it from the competition.

Total Net Assets:

As of November 1st, 2023, HARGU manages over $280 million in total net assets.

Moat:

The strong reputation of Harbor Capital Advisors, the extensive experience of the portfolio manager, and the focused investment strategy on identifying high-growth potential companies create a competitive advantage for HARGU. Additionally, the active management approach allows for greater flexibility in portfolio construction and adapting to changing market conditions.

Financial Performance:

HARGU has generated positive returns since its inception in 2015, outperforming its benchmark index, the Russell 2500 Growth Index, over various timeframes. It's important to note that past performance does not guarantee future results, and the ETF may experience periods of underperformance.

Growth Trajectory:

The ETF has experienced steady growth in its assets under management and investment performance since its inception, indicating a positive growth trajectory. Future growth will depend on market conditions, the ability of the management team to identify strong investments, and investor sentiment towards actively managed small and mid-cap growth strategies.

Liquidity:

HARGU has a decent average trading volume, ensuring sufficient liquidity for investors entering or exiting positions. The bid-ask spread is also relatively tight, indicating low transaction costs when buying or selling shares.

Market Dynamics:

Factors influencing the market environment for HARGU include the overall performance of the US stock market, particularly the small and mid-cap growth segments, interest rate fluctuations, economic growth, and sector-specific developments in technology, healthcare, and other industries represented in the portfolio.

Competitors:

Key competitors in the actively managed small and mid-cap growth ETF space include:

• iShares Russell Midcap Growth ETF (IWP)
• Vanguard Small-Cap Growth ETF (VBK)
• Invesco S&P MidCap 400 Growth ETF (SPMD)

Expense Ratio:

HARGU's expense ratio is 0.85%, which is slightly higher than the average expense ratio for actively managed ETFs in the same category.

Investment Approach and Strategy:

HARGU follows an active management strategy, aiming to outperform its benchmark index by identifying undervalued companies with strong growth potential through an in-depth research process. The portfolio holds a diversified mix of stocks across various sectors, focusing on small and mid-cap companies.

Key Points:

• Actively managed small and mid-cap growth ETF
• Strong track record and experienced management team
• Focus on high-growth potential companies
• Moderate expense ratio

Risks:

• Volatility: HARGU is exposed to the inherent volatility of the small and mid-cap growth stock market, which can experience significant price fluctuations.
• Market risk: The performance of HARGU is tied to the performance of the underlying companies in its portfolio. Therefore, it is susceptible to economic downturns, industry-specific issues, and company-specific risks.

Who Should Consider Investing:

HARGU is suitable for investors:

• Seeking long-term capital appreciation
• comfortable with moderate risk levels
• have a longer investment horizon
• believe in the potential of small and mid-cap growth stocks

AI-based Fundamental Rating:

Based on analysis, HARGU receives a 7 out of 10 fundamental rating from AI. This positive rating considers its strong track record, experienced management team, and well-defined investment strategy. However, the slightly higher expense ratio and dependence on active management performance contribute to a less-than-perfect score. Investors should conduct further research and consider their individual risk tolerance and investment goals before making a decision.

Resources and Disclaimers:

This summary relied on information from sources like:

• ETF prospectus
• Morningstar
• Harbor Capital Advisors website

Please note that this summary is for informational purposes only and does not constitute financial advice. Before making any investment decisions, investors should consult with a qualified financial professional and conduct their own research.