Harbor Capital Advisors Expands Growing ETF Lineup with the Harbor AlphaEdge Small Cap Earners ETF

Harbor Capital Advisors, Inc. ("Harbor"), an asset manager that curates a suite of actively-managed ETFs, mutual funds, and collective investment trusts, has added the Harbor AlphaEdge Small Cap Earners ETF (Ticker: EBIT) to its growing lineup of ETF offerings, managed by Harbor Capital Advisors, Inc.

Why EBIT?

Harbor developed EBIT for advisors looking for small cap products that seek a distinctive approach in the pursuit of alpha potential. With EBIT, unprofitable companies are eliminated from the investment universe at the outset, with the goal of allowing for a narrowed focus on the most profitable¹ small cap companies.

“In our conversations with clients, we have heard a consistent and growing concern around the lack of profitability of small cap companies that comprise the Russell 2000 Index. We built EBIT as a solution for advisors who are cautious about small caps given concerns about profitability levels,” said Kristof Gleich, President, and CIO at Harbor Capital Advisors. “We’ve responded with a straightforward, repeatable investment approach that we feel strongly has greater potential to generate immediate and long-term compelling returns for clients.”

Consider EBIT…

Gleich added, “EBIT is for advisors who understand the potential benefits of a small cap allocation to client portfolios but don’t have time to worry about the increasing lack of profitability in the small cap stock universe.”

Harbor has refined small cap exposure with EBIT by leaning into profitability in an effort to transform what an investment in the asset class looks like. Designed to allocate to profitable small caps, we think EBIT is well positioned to deliver improved investor returns in the small cap space.

The Harbor AlphaEdge Small Cap Earners ETF (Ticker: EBIT) seeks to provide investment results that correspond, before fees and expenses, to the performance of the Harbor AlphaEdge Small Cap Earners Index.

About Harbor Capital

Harbor Capital Advisors is an asset manager with an AUM of $59.98 billion as of June 30, 2024 and is known for prudently curating a suite of active ETFs, mutual funds, and collective investment trusts from boutique managers. Advisors looking for distinct and differentiated investment options for their clients’ portfolios often connect with our obsession to find what we believe are the best and most bold solutions that have the potential to produce compelling risk-adjusted returns. For more information, visit www.harborcapital.com.

¹Profitable companies as defined by (1) median trailing 12-month operating margin (defined as operating profit divided by sales) over the prior 12 quarters greater than or equal to 1%; and (2) aggregate operating margin over the prior 12 quarters greater than or equal to 1%.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a Harbor fund before investing. To obtain a summary prospectus or prospectus for this and other information, visit harborcapital.com or call 800-422-1050. Read it carefully before investing.

Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The ETF is new and has limited operating history to judge.

EBIT: There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Stocks of small cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. The Fund may not exactly track the performance of the Index with perfect accuracy at all times. Tracking error may occur because of pricing differences, timing and costs incurred by the Fund or during times of heightened market volatility. Harbor Capital Advisors, Inc. (the “Index Provider”) selects companies for the Index based on a proprietary methodology and there is no guarantee that the construction methodology will accurately provide the intended exposure. The Fund's assets may be concentrated in a particular sector or industries to the extent the Index is concentrated, which would subject the Fund to the risk that economic, political, or other market conditions that have a negative effect on that sector or industry will negatively impact the value of the Fund. There can be no assurance that the Fund will grow to or maintain an economically viable size, in which case the Board of Trustees may determine to liquidate the Fund.

The Russell 2000® Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell 3000® Index and are trademarks of Frank Russell Company. These unmanaged indices do not reflect fees and expenses and are not available for direct investment.

The Harbor AlphaEdge Small Cap Earners Index evaluates the performance of a specific subset within the small cap US Equity market. This subset comprises companies listed in the Russell 2000 Index that have met profitability criteria over the past twelve quarters. The index employs a modified profitability weighting methodology.

The constituents of the Russell 2000® Index were used by Harbor Capital Advisors, Inc. or its affiliate as the starting universe for selection of the companies included in the Harbor AlphaEdge Small Cap Earners Index. Frank Russell Company (“FTSE Russell”) does not in any way create, calculate, maintain, review, sponsor, support, promote or endorse the Harbor AlphaEdge Small Cap Earners Index. In no event shall any FTSE Russell party have any liability for any direct, indirect, special, incidental, punitive, consequential (including without limitation lost profits) or any other damages in connection with the constituents of the Harbor AlphaEdge Small Cap Earners Index.

Alpha is a measure of risk (beta)-adjusted return.

The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice or a recommendation to purchase a particular security.

Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.

3653119

View source version on businesswire.com: https://www.businesswire.com/news/home/20240710474946/en/