Harbor Capital’s large-cap active growth ETF has provided compelling returns for investors this year.
The Harbor Long-Term Growers ETF an actively managed fund that seeks to exploit market inefficiencies by investing in companies with underappreciated multiyear structural growth opportunities.
WINN has climbed 30.16% at NAV year to date as of September 27, 2023, outpacing some passive growth indexes. During the same period, the Russell 1000 Growth and the S&P 500 Growth have gained 24.09% and 17.66%, both at NAV respectively.
Harbor feels that active management has shown strength in the current market environment. This current environment is more challenged, complex, and uncertain than the prior decade.
“This has been a stock pickers market with a narrow set of companies leading the market higher,” said Todd Rosenbluth, head of research at VettaFi. “The team behind actively managed WINN has made astute calls and has benefited from its focus on high-quality companies.”
How Active Growth ETF WINN Leans Into Concentration
WINN’s distinct active strategy separates it from passive index funds in the space. Subadvisor Jennison Associates manages WINN, employing a combination of bottom-up, fundamental research and systematic portfolio construction.
The fund’s active methodology has allowed the ETF’s portfolio managers to capture opportunities that are out of the purview of many indices. Indexes are inherently backward-looking as they continue to allocate to past winners.
WINN holds 69 securities as of September 2023, making the fund considerably more concentrated than the indices listed above. Notably, the fund’s managers deliberately lean into concentration to seek to generate outperformance.
Harbor believes that U.S. large-cap growth is one of the largest segments of portfolios globally. This makes it an important area for advisors to seek out quality funds in an effort to help maximize returns for clients. Actively managed mutual funds and ETFs roared back to life in the first half of 2023, according to Morningstar. They may be a way to add value for clients
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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.
The Russell 1000® Growth Index is an unmanaged index generally representative of the U.S. market for larger capitalization growth stocks. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 1000® Growth Index and Russell® are trademarks of Frank Russell Company.
The S&P 500 Index is an unmanaged index generally representative of the U.S. market for large capitalization equities. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
Investments involve risk including the possible loss of principal. There is no guarantee the investment objective of the Fund will be achieved. The Fund’s emphasis on dividend paying stocks involves the risk that such stocks may fall out of favor with investors and under-perform the market. There is no guarantee that a company will pay or continually increase its dividend. The Fund may invest in a limited number of companies or at times may be more heavily invested in particular sectors.
As a result, the Fund’s performance may be more volatile, and the value of its shares may be especially sensitive to factors that specifically effect those sectors. The Fund may invest in foreign securities which may be more volatile and less liquid due to currency fluctuation, political instability, government sanctions, social and economic risks. Foreign currencies can decline in value and can adversely affect the dollar value of the fund.
Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.
The views expressed herein are those of Harbor Capital Advisors, Inc. investment professionals. They may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice.
The holdings mentioned may change at any time and may not represent current or future investments.
Jennison Associates is the subadvisor for the Harbor Long-Term Growers ETF.
This article was prepared as Harbor Funds paid sponsorship with VettaFI.
Foreside Fund Services, LLC is the Distributor of the Harbor ETFs