ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Market Insights Channel
  2. Harbor Launches Active Healthcare ETF: MEDI
Market Insights Channel
Share

Harbor Launches Active Healthcare ETF: MEDI

Elle CarusoNov 17, 2022
2022-11-17

Harbor Capital Advisors has launched a new active, fully transparent ETF, providing advisors the opportunity to invest in a pure play healthcare strategy.

The Harbor Health Care ETF (MEDI), listed November 17 on the NYSE, can be a strong solution for investors seeking either complements or alternatives to passive healthcare exposure, as well as for investors that are structurally underweight to the sector, the firm said in a statement to VettaFi. 

“In addition, the health care sector has historically demonstrated defensive qualities vs other economic sectors given its lower cyclicality, making MEDI potentially attractive for investors that are worried about the prospects of a future recession,” Harbor said.

MEDI is subadvised by Westfield Capital Management Company. Westfield’s rich history of healthcare investing across industries and the capitalization spectrum as well as its experienced portfolio management team make the firm uniquely capable of investing in this inefficient, alpha-rich market segment, the firm said. MEDI’s lead portfolio manager, Westfield partner Matt Renna, has 18 years of investment experience, and the co-portfolio manager, Westfield president, CEO, and CIO Will Muggia, has 38 years of experience.

MEDI offers diversified, all-cap exposure to the healthcare sector across sub-industries, which may include biotech, life sciences, healthcare providers, and pharmaceuticals, among others. The firm maintains a high level of active share in a relatively concentrated strategy (38 names as of October 31, 2022) and attempts to capture the upside from the most innovative sub-sectors, while maintaining quality through secular winners and buffering the downside in high beta sell-offs.

“MEDI will invest in development stage Biotechnology companies as we believe they represent some of the greatest opportunities for alpha generation,” Westfield said. “It is important to distinguish between two broad baskets in therapeutics – the commercial stage companies in which we see revenue generating assets, and the pre-commercial stage companies.  It is the latter basket that requires the more pragmatic approach.”  

Westfield said the firm tries to avoid single-asset companies as well as those that are pre-phase two or proof-of-concept stage. However, it will monitor these companies and come up with a framework that would enable a possible eventual investment — essentially a point in time and/or fact pattern that would warrant a favorable risk-adjusted return for investors.  

Instead, Westfield focuses on post-proof-of-concept companies, particularly those that have multiple assets in the pipeline, to mitigate risk. “We look for companies who are well capitalized and who have a competitive edge for innovation,” the firm said.  

“MEDI is currently exposed to what we think are some of the highest quality growth opportunities in Health Care, across all sub-sectors and across the market cap spectrum,” the firm said. “We believe we are positioned for a recovery in Biotech, Medical Technology and Life Science Tools/CRO’s, and thus are optimistic in the short- to mid-term timeframes for significant alpha generation in the space. Longer term, considering the value that can accrete from innovation throughout the Health Care ecosystem, we think the space offers some of the largest opportunities for U.S. Growth investors.”

MEDI’s investment objective is centered around that belief that the portfolio management team can construct a portfolio capable of benefiting from the secular growth and innovation of the U.S. healthcare system while achieving alpha relative to the broader healthcare sector by investing in quality businesses with differentiated products, technologies, and services which meet Westfield’s disciplined valuation criteria. 

Westfield is a long-term Harbor partner, having managed the Harbor Small Cap Growth Fund since 2000, a sleeve of the Harbor Disruptive Innovation Fund and the Harbor Disruptive Innovation ETF (INNO) since 2021, and the Harbor Dividend Growth Leaders ETF (GDIV) since its launch in May.

For more news, information, and strategy, visit VettaFi.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X