[This 3Qs podcast is sponsored by Harbor Capital Advisors.]
Harbor Capital Advisors' Spencer Logan explains what drives the methodology underlying its two flagship products and the firm's approach to launching products.
Alpha: The excess return of an actively managed investment relative to a benchmark such as a relevant index.
Investment Grade: A credit rating of “BBB” or higher by major ratings firms Moody’s or Standard & Poor’s assigned to fixed income assets that indicates the securities are at relatively lower risk of default than lower-rated fixed income securities.
Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please visit our website at www.harborcapital.com. Read the prospectus or summary prospectus carefully before investing.
All investments involve risk, including the possible loss of principal. Fixed income securities fluctuate in price in response to various factors, including changes in interest rates, changes in market conditions and issuer-specific events, and the value of your investment in the Fund may go down. There is a greater risk that the Fund will lose money because it invests in below-investment-grade fixed income securities and unrated securities of similar credit quality (commonly referred to as “high-yield securities” or “junk bonds”). These securities are considered speculative because they have a higher risk of issuer default, are subject to greater price volatility and may be illiquid. Because the Fund may invest in securities of foreign issuers, an investment in the Fund is subject to special risks in addition to those of U.S. securities. These risks include heightened political and economic risks, greater volatility, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, possible sanctions by government bodies of other countries, and less stringent investor protection and disclosure standards of foreign markets.
Model Risk: The strategies and techniques employed in a quantitative model cannot fully match the complexity of the financial markets and therefore sudden unanticipated changes in underlying market conditions can significantly impact their performance. The effectiveness of the given strategy or technique may deteriorate in an unpredictable fashion for any number of reasons including, but not limited to, an increase in the amount of assets managed or the use of similar strategies or techniques by other market participants and/or market dynamic shifts over time.
Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The funds are new and therefore have limited operating history from which they can be judged.
Investing in both actively and passively managed funds involves risk and principal loss is possible. Active investing has higher management fees because of the manager’s increased level of involvement; passive investing has lower management and operating fees. Actively managed funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains. All investments involve risk and principal loss is possible.
Diversification does not assure a profit and does not protect against loss in a declining market.
Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.