Harbor Capital Advisors Expands Growing ETF Suite; Launches the Harbor AlphaEdge Large Cap-Value ETF and Harbor AlphaEdge Next Generation REITs ETF

Harbor Capital Advisors, Inc. ("Harbor"), an asset manager that curates a suite of actively-managed ETFs, mutual funds, and collective investment trusts, is expanding its suite of AlphaEdge ETFs with the launch of the Harbor AlphaEdge Large Cap-Value ETF (Ticker: “VLLU”) and the Harbor AlphaEdge Next Generation REITs ETF (Ticker: “AREA”). The new ETFs follow the recent inaugural launch of the AlphaEdge Small Cap Earners ETF (Ticker: EBIT).

The AlphaEdge suite uses proprietary index strategies developed and managed by Harbor Capital Advisors, Inc.’s Multi-Asset Solutions Team. AlphaEdge strategies stem from proactively working with and listening to clients while evaluating market cycles to identify what Harbor believes are areas of opportunity to earn excess returns or develop more efficient solutions.

Harbor developed and launched VLLU and AREA by leveraging the AlphaEdge concept and conducting extensive research and analysis as part of its core strength in due diligence.

Harbor AlphaEdge Large Cap-Value ETF (VLLU)

For the Harbor AlphaEdge Large Cap-Value ETF, the Multi-Asset Solutions Team uses a proprietary stock selection model, which leans heavily on traditional equity factor research and standard mean-variance portfolio optimization techniques to develop a cohort of 75-150 companies comprising the Harbor AlphaEdge Large-Cap Value Index, which is made up of a subset of the U.S. Large-Cap Value universe Harbor believes possess attractive fundamentals and value characteristics. VLLU will track the Harbor Alpha Edge Large-Cap Value Index and is designed to appeal to long-term advisors who seek to replace Russell 1000 Value beta exposure with a more efficient solution.

Harbor AlphaEdge Next Generation REITs ETF (AREA)

The Harbor AlphaEdge Next Generation REITs ETF, or AREA, focuses on the commercial real estate sector where the Multi-Asset Solutions Team seeks to capitalize on economic trends and provide the income and tax benefits of investing in REITs. AREA’s strategy is to hold only companies the Multi-Asset Solutions Team believes to be Non-traditional REITs and weight the companies within the Harbor Alpha Edge Next Generation REITs Index, which identifies US REITs that own and operate properties outside of the traditional REIT property types of Office, Retail Industrial and Multi-family Residential.

AREA is designed to appeal to long-term advisors who seek the income and tax benefits of a REIT investment but who want to avoid structural headwinds facing the asset class. Unlike traditional REITs that may be exposed to the negative economic trends impacting commercial real estate, AREA aims to navigate exposure to property types positioned to benefit from secular tailwinds with resiliency to cyclical headwinds.

“We believe opportunities have come from challenges in commercial real estate ever since the early days of the pandemic,” stated Kristof Gleich, President, and CIO at Harbor Capital Advisors. “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.”

Gleich added, “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. VLLU, via tracking to the Harbor Alpha Edge Large-Cap Value Index, seeks to provide a more sustainable and compelling value solution.”

About Harbor Capital

Harbor Capital Advisors is an asset manager with AUM of $60.0 billion as of June 30, 2024, and is known for prudently curating a suite of active ETFs, mutual funds, and collective investment trusts from boutique managers. Advisors looking for distinct and differentiated investment options for their clients’ portfolios often connect with our obsession to find what we believe are the best and most bold solutions that have the potential to produce compelling risk-adjusted returns. For more information, visit www.harborcapital.com.

Investors should carefully consider the investment objectives, risks, charges, and expenses of a Harbor fund before investing. To obtain a summary prospectus or prospectus for this and other information, visit harborcapital.com or call 800-422-1050. Read it carefully before investing.

Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The ETF is new and has limited operating history to judge.

AREA: 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. Fund is exposed to real estate risks, including economic conditions, intense competition, and geographic concentration, which can affect property values and investment returns. Investments in REITs are subject to property value changes, management dependency, cash flow issues, and regulatory risks. REITs may also be more volatile and less liquid than other securities. A non-diversified Fund may invest a greater percentage of its assets in securities of a single issuer, and/or invest in a relatively small number of issuers, it is more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio. The Fund may not perfectly track its Index due to differences in securities held, transaction costs, or uninvested cash. Legal or regulatory constraints can also affect tracking accuracy, particularly during volatile markets. The Fund tracks the Index without using defensive strategies, which can lead to underperformance during market downturns or unusual conditions. Errors or flaws in the Index's methodology or data may have adverse impact the Fund's performance.

VLLU: 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. Stocks perceived as undervalued might not appreciate or realize their full potential, and value-oriented investments may underperform other equity styles at times. The Fund may not perfectly track its Index due to differences in securities held, transaction costs, or uninvested cash. Legal or regulatory constraints can also affect tracking accuracy, particularly during volatile markets. The Fund aims to track the Index without defensive strategies, which could lead to underperformance compared to funds that actively adjust their portfolios. Errors or flaws in the Index's methodology or data may have adverse impact the Fund's performance.

The Russell 1000® Value Index is an unmanaged index generally representative of the U.S. market for larger capitalization value stocks. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Russell 1000® Value Index and Russell® are trademarks of Frank Russell Company. The Harbor Alpha Edge Large-Cap Value Index tracks a subset of the U.S. Large-Cap Value universe. Indices are unmanaged and do not reflect fees and expenses and are not available for direct investment.

Beta is a measure of systematic risk, or the sensitivity of a fund to movements in the benchmark.

Standard mean variance, or standard deviation, is the spread of a group of numbers from the mean.

The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice or a recommendation to purchase a particular security.

Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.

3787546

View source version on businesswire.com: https://www.businesswire.com/news/home/20240905211018/en/