Harbor Capital Rolls Out Second “Corporate Culture” US Equity ETF | ETF Strategy

Harbor Capital Advisors Launched second U.S. equities ETF seeking to capture returns from untapped human capital factors.

Christoph Gleich, President and CIO of Harbor Capital Advisors, said:

of Harbor Corporate Culture ETF (HAPI US) listed in NYSE Arca The expense ratio is 0.36%.

Same as existing Harbor Corporate Culture Leaders ETF (HAPY US)the new ETF was developed in partnership with unreasonable capitalis an investment research firm that uses advanced data science to explore the relationship between company culture and stock returns.

According to Irrational Capital, companies that foster supportive corporate cultures exhibit higher levels of employee engagement and motivation, greater diversity, and greater innovation, thereby delivering superior returns for investors.

This hypothesis is supported by independent analysis by JP Morgan’s Quantitative Research team, which found that a sector-neutral index based on human capital factors “has very low correlation with other factors, produced the highest returns and lowest volatility among all investment styles in . “

methodology

HAPI is CIBC Human Capital Index Selects a component from a universe that is a proxy for S&P 500.

The index aims to quantitatively and systematically capture the risk premium associated with the human capital factor. It leverages Irrational Capital’s data analytics capabilities to assess millions of employee insights on highly emotional traits such as trust, purpose, pride, psychological safety, diversity of perspectives, motivation and transparency. It is done by aggregating responses.

This methodology selects a subset of companies with the highest human capital scores. Constituents are weighted by float-adjusted market capitalization, subject to a 5% single-security cap, while the weight of each GICS sector is set equal to the weight in the initial universe.

The index is rebalanced annually.

Harbor Capital’s original corporate culture ETF, HAPY, is similar but starts with an initial universe of US-listed large and mid-cap stocks. The fund will target the 70-100 companies with the highest human capital scores and weight them equally across the portfolio. The ETF has an expense ratio of 0.50%.

Christoph Gleich, President and CIO of Harbor Capital Advisors, said: Company Culture ETF. HAPI provides access to the Human Capital Factor, which we believe is the most comprehensive measure of employee motivation and a differentiating investment factor related to future stock performance. provide investors with more options for “

Irrational Capital co-founder Dan Ariely adds: Our work clearly demonstrates that company culture and employee motivation are closely related to financial performance. Harbor Capital is at the forefront of product development that provides access to this new element. “