Harbor Dividend Growth Leaders ETF

GDIV

Market cap $213M

In the fourth quarter, market breadth broadened materially: Small- and mid-cap stocks outperformed mega caps, cyclicals gained traction, and sector leadership rotated toward Financials, Industrials, and Health Care. Mueller Industries outperformed during the quarter, as the company reported strong quarterly results with net income and earnings-per-share growth ahead of Wall St. expectations. We have become more constructive on the Energy sector, given oil prices, valuations, and sentiment, and added exposure to the sector during the quarter.

The Harbor Dividend Growth Leaders ETF (GDIV) seeks long-term growth of capital by investing in a relatively concentrated portfolio of primarily large-cap companies with a history or prospect of paying stable or increasing dividends, as determined by the portfolio manager and investment team. During the 2nd quarter, the Harbor Dividend Growth Leaders ETF (“ETF”) returned 6.44% (NAV), underperforming the ETF's style benchmark. The ETF benefited from a modest common factor tailwind during the quarter, but this was offset by stock-specific headwinds.