HAPS Profile
The Harbor Corporate Culture Small Cap ETF seeks to offer investors targeted exposure to small-cap U.S. companies with strong corporate cultures. The fund commits to investing at least 80% of its total assets in the securities that make up its underlying index. This index is designed to represent a modified market capitalization-weighted portfolio of about 200 small-cap U.S. firms. These companies are selected based on an evaluation by Irrational Capital LLC, which uses a proprietary scoring methodology to assess and identify organizations with robust corporate cultures.
The index tracked by the Harbor Corporate Culture Small Cap ETF focuses on small-cap stocks, providing investors with exposure to a segment of the market that is typically characterized by higher growth potential but also increased volatility. Irrational Capital's proprietary methodology evaluates various dimensions of corporate culture, including leadership quality, employee engagement, and organizational practices. This assessment aims to identify companies that are believed to have a competitive advantage due to their strong human capital management.
The fund's strategy reflects a growing recognition of the role corporate culture plays in driving long-term business success. By concentrating on companies with exemplary human capital practices, the ETF aims to capitalize on the potential benefits of investing in firms that foster a positive and productive work environment. This approach is based on the belief that companies with strong corporate cultures are better positioned to attract and retain top talent, enhance innovation, and achieve sustainable growth.
Investors in the Harbor Corporate Culture Small Cap ETF gain access to a curated selection of small-cap stocks, chosen for their strong corporate cultures. The ETF's unique focus on human capital factors distinguishes it from traditional small-cap funds and provides a differentiated approach to equity investing. However, investors should be aware of the inherent risks, including market fluctuations and the specific focus on corporate culture, which may impact the ETF's performance compared to broader small-cap indices.
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