Harbor Capital Advisors, Inc. launched the Harbor Disruptive Innovation ETF (INNO) today. This is the third actively managed, fully transparent ETF introduced by Harbor. In September, Harbor made its debut in the ETF market with two fixed income ETFs, the Harbor Scientific Alpha High-Yield ETF (SIHY) and the Harbor Scientific Alpha Income ETF (SIFI).
Managed by Harbor’s Multi-Asset Solutions Team, INNO utilizes an actively managed multi-strategy approach to offer exposure to innovative companies displacing pre-existing goods, services, and industry leaders across sectors, market capitalizations, and regions.
Harbor has selected a network of specialized asset managers to contribute concentrated equity allocations to the INNO portfolio. Harbor determines the allocations to the underlying asset managers with the goal of maximizing the portfolio’s diversification benefits and managing risk. INNO is a fully transparent ETF that discloses daily holdings.
“Harbor is excited to expand its ETF offering with the launch of a strategy that’s purpose-built to unlock the opportunities in disruptive innovation,” said Spenser Lerner, portfolio manager and head of multi-asset solutions at Harbor. “Through our Disruptive Innovation strategy, we seek to offer investors access to businesses that are transforming the marketplace, while mitigating risk by carefully managing the exposures of the overall portfolio. We believe our multi-strategy framework is highly differentiated. Our process allows us to access disruptive trends across markets, help maximize the alpha potential of concentrated and specialized managers, and seek to mitigate risk through our proprietary portfolio construction methodology,” continued Lerner.
Key Features of the Harbor Disruptive Innovation ETF (INNO)
An actively managed and fully transparent multi-strategy ETF with a differentiated approach to accessing disruptive innovation, INNO leverages the investment experience of specialized managers and places portfolio construction and risk management front and center.
- Harbor employs a multi-strategy approach and allocates across five different active managers with unique investment styles, offering philosophical, style, and sector diversification. They are exceptional stock pickers, and this approach seeks to enhance investors’ opportunity set by investing in leading-edge, industry-transforming companies across sectors, market cap ranges, and regions.
- Harbor is responsible for portfolio construction and risk management with the goal of maximizing diversification benefits of the underlying managers and minimizing concentrated factor exposures.
- The strategy’s underlying managers possess competitive advantages in selecting securities, while Harbor has a distinct advantage in conducting portfolio construction and risk management. Harbor Disruptive Innovation enables both groups to concentrate on their respective core competencies.
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Harbor offers a diverse family of cost-aware investment solutions managed by institutional-caliber firms. We source talented investment teams to manage portfolios and apply a rigorous fiduciary oversight program to monitor their performance and investment decisions. Harbor had combined assets under management of approximately $63 billion as of September 30, 2021. For more information, visit harborcapital.com.
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST. TO OBTAIN A SUMMARY PROSPECTUS OR PROSPECTUS FOR THIS AND OTHER INFORMATION, VISIT HARBORCAPITAL.COM OR CALL 800-422-1050.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Since the Fund may hold foreign securities, it may be subject to greater risks than funds invested only in the U.S. These risks are more severe for securities issuers in emerging market regions. Investing in REITs will subject the Fund to additional risk. Foreside Fund Services, LLC is the Distributor of the Harbor ETF Trust and the Harbor Disruptive Innovation ETF.
Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The ETFs is new and has limited operating history to judge.