Harbor Capital Advisors Inc has launched the Harbor Disruptive Innovation ETF. Managed by Harbor’s Multi-Asset Solutions Team, the Harbor Disruptive Innovation ETF (INNO) utilises an actively managed multi-strategy approach to offer exposure to innovative companies displacing pre-existing goods, services, and industry leaders across sectors, market capitalisations and regions.
The firm writes that through its rigorous manager due diligence, Harbor has selected a network of specialised asset managers to contribute concentrated equity allocations to the Disruptive Innovation portfolio. Harbor determines the allocations to the underlying asset managers with the goal of maximising the portfolio’s diversification benefits and managing risk. INNO is a fully transparent ETF that discloses daily holdings.
This is the third actively-managed, fully transparent ETF introduced by Harbor. In September, Harbor made its debut in the ETF market with two fixed-income ETFs – Harbor Scientific Alpha High-Yield ETF (SIHY) and Harbor Scientific Alpha Income ETF (SIFI).
“Harbor is excited to expand its ETF offering with the launch of a strategy that’s purpose-built to unlock the opportunities in disruptive innovation,” says Spenser Lerner, Portfolio Manager and Head of Multi-Asset Solutions, Harbor.
“Through our Disruptive Innovation strategy, we seek to offer investors access to businesses that are transforming the marketplace, while mitigating risk by carefully managing the exposures of the overall portfolio. We believe our multi-strategy framework is highly differentiated. Our process allows us to access disruptive trends across markets, help maximise the alpha potential of concentrated and specialised managers, and seek to mitigate risk through our proprietary portfolio construction methodology,” says Lerner.
Harbor writes that an actively managed and fully transparent multi-strategy ETF with a differentiated approach to accessing disruptive innovation, the fund leverages the investment experience of specialised managers and places portfolio construction and risk management front and center.
Harbor employs a multi-strategy approach and allocates across five different active managers with unique investment styles offering philosophical, style, and sector diversification. The firm writes that they are exceptional stock pickers, and this approach seeks to enhance investors’ opportunity set by investing in leading edge, industry transforming companies across sectors, market cap ranges, and regions.
Harbor is responsible for portfolio construction and risk management with the goal of maximising diversification benefits of the underlying managers and minimising concentrated factor exposures.
The strategy’s underlying managers possess competitive advantages in selecting securities, while Harbor has distinct advantage in conducting portfolio construction and risk management. Harbor Disruptive Innovation enables both groups to concentrate on their respective core competencies.