Odds & Ends: Harbor Capital Debuts 10th ETF

There were nine launches during the week, maintaining the pace that has been the norm recently. Among them was the rollout of the Harbor Corporate Culture ETF (HAPI), which is Harbor Capital Advisors’ tenth fund.  

HAPI, which launched on Thursday, is fairly similar to the Harbor Corporate Culture Leaders ETF (HAPY) in that both funds track indexes based on Irrational Capital’s human capital factor metric. However, HAPI is a slightly broader fund, with its index representing approximately 150 companies, while HAPY currently holds 88 names. The new fund also aims for sector neutrality relative to its parent index, the Solactive GBS United States 500 Index.  

The human capital factor driving both HAPY and HAPI is based on such criteria as employee engagement and motivation; trust and transparency; point of view diversity; and compensation fairness, according to the prospectus.  

HAPI comes with an expense ratio of 0.36% and lists on the NYSE Arca.  

Thursday also saw the debut of the American Century Short Duration Strategic Income ETF (SDSI), an actively managed fixed income fund that targets a duration of three years or less. The fund can hold both investment-grade and high-yield debt denominated in U.S. or non-U.S. currencies. 

SDSI has an expense ratio of 0.32% and lists on the Nasdaq stock market.  

The actively managed Unlimited HFND Multi-Strategy Return Tracker ETF (HFND) launched on Tuesday and looks to replicate the returns of the broad hedge fund industry by taking long and short positions in 30-50 ETFs as well as implementing futures-based strategies, according to the prospectus. HFND comes with an expense ratio of 1.03% and lists on the NYSE Arca.  

On Friday, the Burney U.S. Factor Rotation ETF (BRNY) made its debut. The actively managed fund invests in U.S. companies across the size spectrum using a proprietary model that focuses on the investment cycle. It was developed by BRNY’s subadvisor and determines whether the investment environment favors large, small or midcap stocks, or growth or value stocks. BRNY rebalances monthly. It has an expense ratio of 0.79% and lists on the NYSE Arca. 

Closures 

Valkyrie also announced it would be closing one of its three funds. The Valkyrie Balance Sheet Opportunities ETF (VBB) has less than $1 million in assets under management after launching late last year. The fund will see its last day of trading on Oct. 30.  

On Wednesday, the iPath Shiller CAPE ETN (CAPD) was called, and the product is no longer trading.  

So far, the number of announced and completed closures for 2022 stands at 117.  

Other Changes 

During the week, the Roundhill Cannabis ETF (WEED) also saw a significant 20 basis point reduction in its expense ratio, going from 0.59% to 0.39%. WEED launched earlier this year and has less than $2 million in assets under management. The change in cost means the fund is now the cheapest among the current roster of marijuana ETFs, where long-only funds can have expense ratios as high as 0.76%.  

On Friday, two Columbia Threadneedle ETFs underwent name and index changes. The Columbia Sustainable International Equity Income ETF (ESGN) changed its name to the Columbia International ESG Equity Income ETF and its index from the Beta Advantage Sustainable International Equity Income 100 Index to the Beta Advantage International ESG Equity Income Index.  

At the same time, the Columbia Sustainable U.S. Equity Income ETF (ESGS) changed its name to the Columbia U.S. ESG Equity Income ETF and its index from the Beta Advantage Sustainable U.S. Equity Income 100 Index to the Beta Advantage U.S. ESG Equity Income Index. 

Contact Heather Bell at [email protected]