On Thursday, Harbor Capital Advisors expanded its fund selection with the release of the Harbor Transformative Technologies ETF (TEC ).
TEC’s objective is to offer long-term capital growth for its investment community. The fund has a net expense ratio of 69 basis points.
Primarily, the fund seeks to allocate its assets towards stocks that fund managers believe are “transformative technology” companies. Per the prospectus, this is clarified as companies that are paving the way for creating engaging and innovative technological advancements. In doing so, the fund hopes to tap into long-term growth potential within the tech sector.
Targeting Growth in Tech
Jennison Associates LLC, TEC’s subadvisor, chooses companies for inclusion using a bottom-up research approach. This fundamental approach blends third-party research along with disciplined investment experience. By focusing on fundamentals, the fund can potentially better drill down on companies with great growth potential.
To build its investment exposure to technology companies, the fund may invest in both stocks and ADRs. Additionally, companies eligible for inclusion may be of any particular market cap.
Most of the fund’s company exposure will come from those based in the United States. However, TEC may also allocate up to 20% of its net assets into companies from foreign issuers.
The shaky performance of the U.S. market has caused some advisors and investors to rethink the companies they choose to be exposed to. Given how the technology theme likely won’t be going away anytime soon, TEC can help its investors tap into companies that could lead the way to the next major innovations in tech.
Currently, Harbor Capital Advisors offers a wide variety of ETFs listed in the United States. One of the largest Harbor funds, the Harbor Long-Term Growers ETF (WINN ), has well over $650 million in assets under management.
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