ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • 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
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • 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 Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Harbor Launches Inflation Focus ETF With Quantix
News
Share

Harbor Launches Inflation Focus ETF With Quantix

Elle CarusoFeb 10, 2022
2022-02-10

Harbor Capital has partnered with subadvisor Quantix Commodities to launch the All-Weather Inflation Focus ETF (HGER).

HGER is a solution for advisors who are seeking to hedge inflation. The new fund aims to provide investors with a compelling inflation hedge through exposure to the Quantix Inflation Index (QII), which is made up of liquid commodity futures, weighted towards the goal of maximizing the correlation to inflation, according to the firm.

HGER, which began trading on the NYSE on February 10, carries an expense ratio of 68 basis points. 

The QII is a dynamic commodity index with the objective of being a diversified inflation hedge for investors. The index places more weight on those commodities which have a higher pass-through cost to inflation, such as gasoline, and a lower weighting to those with lower pass-through costs, such as cotton or cocoa, according to the firm.

The QII also includes a scarcity debasement indicator to indicate what the source of inflation is; in a debasement regime, where inflation is coming from a weaker USD, the QII will tilt toward gold, and in a scarcity regime, where inflation is coming from demand outstripping supply, the QII will tilt toward consumable commodities such as oil, Harbor said.

The funds are well-positioned to navigate an inflationary and rising rate economic landscape.

Commodities generally trade on supply/demand fundamentals and less on changes in interest rates, which separates it from other major asset classes. 

“A rising rate environment typically signifies a strong economy, in which demand is outstripping supply, causing inflation,” Harbor said. “Consumable commodities such as those in the Petroleum and Industrial Metals sectors tend to do well in this type of environment, and the QII had over half of its exposure in these two sectors as of the last rebalance.”

HGER is also designed to be reactive to changing environments, lowering the risk of being tied up in a situation in which the futures price of a commodity is higher than the spot price. 

“Contango is typically associated with weaker market environments, when demand is less than supply in a weak economy. In such an environment, the Scarcity Debasement Indicator will indicate that the more likely source of inflation would be Debasement rather than Scarcity,” Harbor said. “Due to the dynamic nature of the index, in this scenario, the QII will weight toward Gold and away from consumable commodities at the next quarterly rebalance.” 

Using the events of the first half of 2020 as an example, in hypothetical historical backtests, the QII significantly outperformed the traditional commodity benchmarks by double digits, Harbor said.

HGER is managed by Matthew Schwab, a portfolio manager at Quantix. 

For more news, information, and strategy, visit ETF Trends.


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Feb 07

ETF Prime: Balchunas, Crigger, and Nadig Live

Feb 07

Buckley: “Technology Is the Embodiment of Our Service”

Feb 07

Calvert & Morgan Stanley Are Thinking Long-Term on ESG

Feb 07

SPDR, PIMCO Bond Execs Disagree on Rate Cut Probability

Feb 07

Allocating to Liquid Alts Can't be Timed, Experts Say

Feb 07

To Connect With Clients, Tell Your Story

Feb 07

Turning Prospects Into Clients With AdvisorTech

Feb 07

Crigger, Russell Discuss the Value of Content Marketing

Feb 07

Good Financial Planning Can Be Good Storytelling

Feb 07

In Terms of Markets, “Somebody’s Wrong”

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

SOXX

iShares Semiconductor ETF

BLOK

Amplify Transformational Data...

META

Roundhill Ball Metaverse ETF


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

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