Harbor Capital expands ETF lineup with technology focus

Published 24/04/2025, 14:18
Harbor Capital expands ETF lineup with technology focus

CHICAGO - Harbor Capital Advisors, Inc., a firm with $58.79 billion in assets under management as of March 31, 2025, has introduced the Harbor Transformative Technologies ETF (TEC) to its collection of exchange-traded funds (ETFs). The fund currently trades at $20.07 and maintains a FAIR financial health score of 2.17, according to InvestingPro data. This addition extends Harbor’s partnership with Jennison Associates, known for over 50 years of growth equity investing experience.

The new ETF, managed by Jennison Associates, aims to identify and invest in companies poised for growth due to technological innovations. TEC will hold a portfolio of 35 to 60 stocks, investing across various industries and market capitalizations, with up to 20% of its holdings outside the United States. It will be benchmarked against the Nasdaq-100 Index, which comprises the 100 largest non-financial companies on the Nasdaq exchange.

Kristof Gleich, President & CIO of Harbor, highlighted the ETF’s focus on transformative technologies, which extends beyond information technology to sectors like healthcare. He expressed excitement about the potential for healthcare transformation in the coming decade and emphasized the fund’s investment in companies actively driving disruptive change.

Jennison’s investment approach for TEC involves fundamental research to uncover companies where technology serves as a transformative tool for targeting new markets or expanding existing ones. The ETF will explore themes with unique growth drivers, including AI-augmented cloud computing, AI-driven semiconductor development, cybersecurity, and technology’s role in revolutionizing industries such as fintech and healthcare.

With a total expense ratio of 69 basis points, TEC is positioned as a potential core U.S. equity holding for growth-oriented investors and may be suitable as a satellite portfolio.

Investors should note that TEC is a new ETF with limited operating history. The fund’s focus on technology companies could result in higher sector volatility, and investments in foreign securities may introduce additional risks, such as currency fluctuations. The fund’s non-diversified status may also make it more susceptible to risks associated with specific economic, political, or regulatory events. InvestingPro analysis reveals additional risk factors, including weak gross profit margins and poor free cash flow yield. Subscribers can access over 30 additional financial metrics and expert insights to make more informed investment decisions.

Harbor Capital Advisors curates actively managed ETFs, mutual funds, and collective investment trusts, offering investment options that seek to produce compelling risk-adjusted returns. For comprehensive analysis of TEC and similar investment opportunities, visit InvestingPro for exclusive portfolio ideas and advanced screening tools.

This news article is based on a press release statement from Harbor Capital Advisors, Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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