HGER Profile
The Harbor All-Weather Inflation Focus ETF is designed to offer investors exposure to inflation-hedged returns through a specialized investment strategy. The fund primarily invests through its subsidiary in excess return swaps linked to an index tailored to capture the performance of commodities with varying sensitivities to inflation. This approach allows the ETF to potentially benefit from inflationary periods by providing targeted exposure to commodities deemed effective in preserving purchasing power.
The underlying index of the fund comprises futures contracts on physical commodities, selected based on their inflation sensitivity and the costs associated with maintaining a rolling futures position. The index construction employs QCIs proprietary quantitative methodology, which assesses the relative inflation impact of different commodities and optimizes the selection of futures contracts to enhance performance and mitigate costs.
The funds investment strategy focuses on leveraging these excess return swaps to gain exposure to the indexs performance. This method provides a means to achieve returns linked to commodity futures without directly holding the underlying physical assets. As a result, the ETF aims to deliver returns that reflect the performance of inflation-sensitive commodities while managing the associated costs of futures contracts.
Managed by Harbor, the ETF is non-diversified, focusing its investments on a specific set of assets to align with its inflation-focused objectives. This concentrated approach allows for precise targeting of commodities that are likely to perform well in inflationary environments. The fund is designed for investors seeking to hedge against inflation through a sophisticated, quantitative-based strategy that integrates futures contracts and swaps.
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