On Thursday, Harbor Capital bolstered its ETF suite with the launch of the Harbor AlphaEdge Next Generation REITs ETF and the Harbor AlphaEdge Large Cap Value ETF.
Nontraditional REITs Strategy
AREA seeks to provide corresponding performance to that of the Harbor AlphaEdge Next Generation REITs Index. The fund has a net expense ratio of 0.50%.
“We believe opportunities have come from challenges in commercial real estate ever since the early days of the pandemic,” noted Kristof Gleich, Harbor Capital Advisors president and CIO. “We built AREA as a solution for advisors who believe in the opportunities we see in commercial real estate for years to come, packaged in a vehicle we also believe makes sense for years to come.”
The Harbor AlphaEdge Next Generation REITs Index focuses on nontraditional U.S.-traded REITs with robust fundamentals. Nontraditional REITs are U.S. REITs that own and operate properties outside of the office, retail industrial, and multifamily residential property types. This includes equity REITS pertaining to data center, gaming, healthcare, hotel, and self-storage property types, among others.
A Large-Cap Value Play
Meanwhile, VLLU aims to generate large cap equity exposure with a focus on value. The fund uses the Harbor AlphaEdge Large-Cap Value Index and possesses a net expense ratio of 0.25%.
“Similarly, we hear advisors are seeking greater returns from their value allocation, to help address regime changes and increased bouts of market volatility over time,” added Gleich. “VLLU, via tracking to the Harbor Alpha Edge Large-Cap Value Index, seeks to provide a more sustainable and compelling value solution.”
The strategy for the Harbor AlphaEdge Large-Cap Value Index centers around seeking large-caps with good valuations and fundamentals. Companies under consideration for the index are screened based on capital deployment, momentum, quality, risk, and valuation.
Both AREA and VLLU use a replication strategy to match the performance of their respective indices. However, each fund reserves the right to opt for a representative sampling strategy, should the fund managers view it as a more optimal play at the time.
By investing in AREA or VLLU, investors can access Harbor Capital’s extensive experience in navigating ETF strategies. Currently, Harbor Capital’s ETFs have over $1.5 billion in assets under management.
For more information, please visit VettaFi.com | ETF Trends.
