Harbor Health Care ETF

MEDI

Market cap $26.6M

Revolution Medicines was a top contributor during the quarter. AbbVie, by contrast, traded largely sideways, as investors continued to assess its post-patent earnings durability. While Eli Lilly delivered strong absolute performance — driven by continued GLP-1 demand and the FDA approval of Zepbound — our underweight position in the name was a significant detractor from relative results. During the quarter, we purchased Avidity Biosciences, a clinical-stage biopharma company focused on RNA therapies for rare muscle diseases, and Abivax SA, a clinical-stage biopharma company focused on chronic inflammatory diseases.

During the fourth quarter, the Harbor Health Care ETF returned 10.43% (NAV), underperforming the Russell 3000® Growth Health Care Index, which returned 16.71%. The underperformance was primarily driven by stock selection and relative underexposure to higher-beta names, particularly within development-stage biotechnology and more speculative areas of medtech. From a factor perspective, the ETF's overweight exposure to volatility was the largest tailwind to relative performance, offsetting a headwind from an underweight exposure to size.

During the third quarter, the Harbor Health Care ETF returned 7.30% (NAV), outperforming the Russell 3000® Growth Health Care Index, which returned 3.80%. We purchased IDEXX Laboratories, a MedTech company primarily focused on veterinary services, with a strong market position, steady end markets, and a strong growth profile, in our opinion. We sold Verona Therapeutics, a commercial stage biopharma company focused on lung disease, when the stock hit our price target following the announcement that Merck would be acquiring the company.

CHICAGO--(BUSINESS WIRE)--Harbor Capital Advisors, Inc. (“Harbor”), a premier provider of investment solutions, is proud to celebrate the 3-year anniversary of the Harbor Health Care ETF (MEDI), an actively managed sector ETF subadvised by Westfield Capital Management Company, L.P. Since its inception in November 2022, MEDI has delivered strong performance and demonstrated its value as a differentiated health care allocation tool for advisors and institutions. Built on Westfield's deep expertis.

The volatile sector is seeing greater stability, and these four stocks can profit.

The Health Care sector rebounded in the first quarter of 2025, navigating a volatile but opportunistic landscape. During the first quarter, the Harbor Health Care ETF returned 2.18% (NAV), outperforming the Russell 3000® Growth Health Care Index, which returned 1.99%. Relative performance was driven by our overweight in commercial-stage biotechnology, as well as solid contributions from health care services.

Eli Lilly and Company (LLY) posted robust fourth-quarter 2023 earnings, beating estimates on both the top and bottom lines driven by strong sales of its diabetes and weight-loss treatments.

The largest U.S. health insurer UnitedHealth Group (UNH) reported better-than-expected fourth-quarter 2023 results but medical costs rose more than expected for the first time in two years.