Harbor Capital's New Bond ETF Uses Active Strategy | ETF Trends

On Thursday, Harbor Capital Advisors debuted its latest ETF offering: the Harbor Disciplined Bond ETF (AGGS).

“We launched the Harbor Disciplined Bond ETF to specifically address the need for a consistent, conservative approach to fixed income investing that focuses on security selection,” Harbor Capital Advisors President and CIO Kristof Gleich stated. “We believe clients want that unwavering approach during varying market conditions, and now they can access it in an ETF.”

AGGS is benchmarked to the Bloomberg US Aggregate Bond Index. The fund is actively managed and carries a net expense ratio of 0.35%.

Fixed Income Focus

To seek total return, the fund primarily allocates assets toward fixed income investments. These investments can include a wide variety of fixed income instruments, including corporate debt and municipal debt securities. However, the fund will not invest more than 5% toward any individual issuer, with the one exception being the U.S. government and its agencies.

Income Research + Management (IR+M) works as the fund’s subadvisor. In choosing assets, IR+M uses a bottom-up research and investment process. The process involves a credit analysis and review of structural features, along with relative-value comparisons to other investment options.

When it comes to asset management, IR+M aims to maintain a long-term perspective. Through a long-term outlook, the fund seeks consistent returns that can endure through periods of volatility.

Through an actively managed strategy, AGGS looks to provide outperforming yield over the benchmark. Active management can also help the fund better position itself to take advantage of market conditions.

“We are thrilled to grow our Harbor partnership with the introduction of AGGS, and we look forward to delivering compelling investment results for investors,” noted Bill O’Malley, IR+M CEO and CO-CIO.

Harbor Capital Advisor has extensive experience in overseeing actively managed ETFs. One of its largest active ETFs, the Harbor Long-Term Growers ETF (WINN), has more than $380 million in assets under management.

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