Harbor Commodity All-Weather Strategy ETF (HGER)
Access a specialized and dynamic portfolio for your strategic allocation to commodities
Harbor Commodity All-Weather Strategy ETF (HGER)
Access a specialized and dynamic portfolio for your strategic allocation to commodities
The Harbor Commodity All-Weather Strategy ETF (HGER) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Quantix Commodity Index.
Fund Highlights
- Distinctive. Leverages proprietary technology to target liquid commodities with high expected inflation sensitivity while aiming to maximize futures roll yield.
- Dynamic. Adjusts commodity weights based on different market and inflationary regimes, particularly commodity scarcity and debasement.
- Broad-Based. Provides exposure to 24 of the most liquid commodity futures traded on a U.S. or UK exchange.
- No K-1s. Offered as a 1940-Act ETF structure, eliminating the need for Schedule K-1 tax filing.
Quantix Commodity Index
Through a distinctive construction and exposure to a diversified basket of commodities, the Quantix Commodity Index (“QCI”) is designed to deliver a dynamic, all-weather approach to commodity investing and outperformance to traditional commodity indices, particularly in inflationary environments.
QCI is comprised of commodity futures, which are distinct in their relationship to inflation and are generally regarded as having the highest positive correlation to inflation of all the major asset classes.
As part of its methodology, QCI considers the relative inflation sensitivity of each commodity, dynamically adjusts the weight of gold or other commodities based on the different market and inflationary regimes, and allocates to commodities with favorable roll yield dynamics. The Index is rebalanced on a quarterly basis.
Engineered to be All-Weather
- Designed to increase inflation sensitivity in periods of higher inflation by targeting commodities with high pass-through costs, a higher correlation to CPI, and taking in account the cost to hold the exposure.
- Though commodities with low pass-through costs are filtered out, the index retains relevant exposure to a broad spectrum of commodity sectors to help potential diversification to an investment portfolio.
- Sector weights are determined to achieve inflation protection from a variety of sources by analyzing historical correlations.
- Quantix understands the critical importance of implementation methodology in rolling commodity indices, especially in differing commodity price environments.
- Quantix carefully optimizes the implementation of the inflation sensitivity framework using a scarcity/debasement lens.
Related Products to Consider
A Strategy Specifically Designed for Hedging Inflation
Quantix Commodities LP
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As of 8/29/2024
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![Sub-advisor logo](/static/b8b05342b8231d976014eff9328b2c4c/350f0/quantix_logo.png)
Quantix Commodities LP (“Quantix”) is a commodities focused fund manager specializing in the development and management of commodities-based investment strategies. The firm is a market leader in delivering comprehensive commodity investment solutions to the marketplace.
Quantix is led by CIO Don Casturo, former Global Commodities COO and Head of EMEA Commodity Trading at Goldman Sachs, along with two founding partners. The team is highly experienced, with industry-leading pedigree and a long track record of working together.
The firm delivers strategies targeting different investment objectives for clients; after launching the all-weather, absolute return strategy in 2019, Quantix launched an inflation-focused, long only strategy in early 2021, which is part of the Investor Solutions Group at Quantix.
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Important Information
Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. Harbor ETFs are new and have limited operating history to judge.
Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. A non-diversified Fund may invest a greater percentage of its assets in securities of a single issuer, and/or invest in a relatively small number of issuers, it is more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio.
Commodity Risk: The Fund has exposure to commodities through its and/or the Subsidiary’s investments in commodity-linked derivative instruments. Authorized Participant Concentration/Trading Risk: Only authorized participants (“APs”) may engage in creation or redemption transactions directly with the Fund. Commodity-Linked Derivatives Risk: The Fund’s investments in commodity-linked derivative instruments (either directly or through the Subsidiary) and the tracking of an Index comprised of commodity futures may subject the Fund to significantly greater volatility than investments in traditional securities.
Diversification does not assure a profit or protect against loss in a declining market.
Bid/Ask Mid Price: the midpoint between the highest bid and the lowest offer, as of the time that the Fund’s NAV is calculated, typically 4 p.m. Eastern Time.
Premium/Discount ($): the difference between the Fund’s market price and NAV, expressed as a percentage of NAV. A premium is the amount that the Fund is trading above the reported NAV. A discount is the amount that the Fund is trading below the reported NAV.
30-Day Median Bid/Ask Spread: calculated by identifying national best bid and national best offer ("NBBO") for each fund as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage (rounded to the nearest hundredth).
Weighted Average Market Capitalization: The average size of the companies in a portfolio or index as measured by the market value of outstanding shares.
Price/Book: The price-to-book (P/B) ratio evaluates a firm's market value relative to its book value.
Adjusted Trailing P/E Ratio: The Adjusted Trailing P/E (Price/Earnings) Ratio is the closing stock price divided by the sum of the last 12 months actual EPS.
% EPS Growth – Past 3 year: Earnings per share refers to the bottom-line measure of a company’s profitability defined as net income divided by the number of outstanding shares.
Return on Equity: Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity.
Forecasted P/E Ratio: a measure of the P/E (price-to-earnings) ratio using forecasted earnings for the P/E calculation.
Roll yield is the return from adjusting a futures position from one futures contract to a longer-dated contract. Debasement refers to lowering the value of a currency.
The Morningstar Medalist Ratings are shown for funds that have received a rating of Gold, Silver, or Bronze. The funds shown without Medalist Ratings may not have received a Medalist Rating or may have received lower ratings.
The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/.
The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.
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