ETF of the Week: Harbor Corporate Culture ETF (HAPI)

VettaFi Vice Chairman Tom Lydon said: Harbor Corporate Culture ETF (HAPI) Join Chuck Jaffe of Money Life on this week’s ETF of the Week podcast.

Of the fund, Lydon says, “It’s kind of a spin-off of ESG, with the idea that corporate culture and job satisfaction for employees is becoming more and more important these days.” He said HAPI is more diversified than many of his ESG-specific funds, especially in his unique approach to ESG.

HAPI is based on the Canadian Bank of Commerce Human Capital Index, which recognizes that employees are a company’s most important asset. Employee benefits and satisfaction can be hard to measure, but there is definitely value behind it. “If a company does the right thing and can be measured by delivering profitability, that’s really important and important,” he says Lydon.

Group Irrational Capital has found a way to make these intangibles tangible. The group used workplace behavioral science and data science to capture the relationship between human capital and value creation. According to Lydon, “We tend to invest in companies to create value, but that can be at the expense of human capital. is a measure of the human capital, giving extra points to the ability to overestimate human capital in the eyes of the employee.”

HAPI is a new fund that just launched this week. Despite being relatively new, some of the companies it holds are fairly large, Jaffe said, adding that the fund won’t suffer from liquidity problems.

Lydon said: If you’ve invested in the bond or stock market, have some dry powder, and want to be comfortable with what you’re investing in for the next 5-10 years, this is a good place to look. Lydon doesn’t know of any other fund like HAPI. Looking at the index, Lydon found nothing quite like it, pointing to 150 securities that he scored on employee engagement, motivation, fairness in compensation, trust, and transparency. I was. “These factors that you won’t find anywhere else are brought together like this,” he said.

Companies like Apple, Microsoft, Google, and Costco are all tops, but their weightings don’t match the S&P. “Maybe they’re onto something,” Lydon said. “We may be able to prove that not only is business value creation, but the way employees are treated increases business value.”

Jaffe noted that while HAPI is relatively new, the fund has sister funds. Harbor Corporate Culture Leaders ETF (HAPY).

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