Harbor Capital Advisors has launched a new actively managed ETF targeting non-US companies with sustainable earnings growth.
Kristof Gleich, President and CIO of Harbor Capital Advisors.
The Harbor International Compounders ETF (OSEA US) has been listed on NYSE Arca with an expense ratio of 0.55%.
The fund is sub-advised by C WorldWide Asset Management, a Denmark-based investment manager focused on growth-oriented equity strategies.
Commenting on the new launch, Kristof Gleich, President and CIO of Harbor Capital Advisors, said: “The Harbor International Compounders ETF is another exciting addition to our suite of ETFs.
“It’s a great example of how we curate specialized boutique managers from across the world that can add value to our clients. C WorldWide has a history of strong returns going back to 1986, and we’re pleased to bring them to US-based investors in a fully transparent ETF.”
Bo Knudsen, CEO at C WorldWide Asset Management, added: “We’re excited to add expertise in overseas investing to Harbor Capital’s strategic investment solutions. Being part of their exclusive investment partnerships, we bring another distinct offer to the Harbor line-up, continuing their path as a leader in active fully transparent ETFs.”
Investment approach
The ETF invests in non-US stocks from around the world including those located in emerging markets. Companies must have market capitalizations above $5 billion to be eligible for selection.
C WorldWide utilizes its proprietary research to identify high-quality companies characterized by consistent and recurring revenues, stable free cash flows, and sustainable returns on invested capital.
In addition to financial and valuation metrics, the investment team conducts a qualitative assessment of companies which includes, among other criteria, each firm’s business model, management track record, and alignment with environmental, social, and governance (ESG) factors.
This qualitative assessment is designed to evaluate how a company’s competitive strengths and market position might change as current economic and secular themes evolve over a medium-term horizon.
The ETF’s final portfolio will typically consist of 25 to 30 positions that are expected to be held for an extended period of time.