ETF CENTRAL
Bigger Isn’t Always Better Part I: 3 “Boutique” ETF Issuers to Watch
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Here’s a look at some up-and-coming ETF firms making waves with their fund lineups.
By Tony Dong, CETF®, Lead ETF Analyst · January 23, 2025
When you think of ETFs, it’s hard to ignore the dominance of the “Big 5” issuers: BlackRock iShares, State Street Global Advisors, Invesco, Vanguard, and Charles Schwab.
Collectively, they manage trillions in ETF assets under management (AUM). Thanks to their economies of scale, brand recognition, low fees, and savvy marketing, these firms have become the go-to choices for retail investors and advisors alike.
But as I’ve often said, bigger isn’t always better. And when it comes to ETFs, there’s real value in looking beyond the industry giants.
No, this isn’t a case of Coca-Cola versus a no-name cola brand. Boutique issuers and ETF entrepreneurs, often working with white-label firms to bring their innovative products to market, deserve a closer look.
Today, we’re putting the spotlight on three smaller ETF issuers making waves with their unique lineups, all listed on the NYSE.
Harbor Capital
While the “big five” ETF issuers have expanded their active ETF lineups in recent years, smaller issuers have also stepped up with impressive results. A prime example is Harbor Capital, which has made waves with its innovative offerings.
The firm’s standout product is the Harbor Long-Term Growers ETF (WINN), managing $713 million in AUM. This actively managed ETF holds a portfolio of 70 large-cap growth stocks, offering investors access to Jennison Associates’ flagship large-cap growth strategy.
WINN exemplifies how ETFs have democratized access to strategies that were once confined to separately managed accounts (SMAs) and mutual funds.
Another notable product is the Harbor Commodity All-Weather Strategy ETF (HGER). This K-1-free ETF holds 24 commodity futures from the Quantix Commodity Index, specifically screened for inflation sensitivity and managed to optimize roll yield.
So far, HGER has delivered on its objectives. Despite its 0.68% expense ratio—comparable to index-tracking commodity ETFs—it has significantly outperformed. Since inception, the fund has returned an annualized 7.57%, far exceeding the 0.61% return of the Bloomberg Commodity TR Index.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
Source: TrackInsight/ETF Central, all data and statistics are as of January 23, 2025
Important Information
Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Past performance reflects the beneficial effect of any expense waivers or reimbursements, without which returns would have been lower. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050.
Investing involves risk, principal loss is possible. Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. Harbor ETFs are new and have limited operating history to judge.
The views expressed herein are those of Tony Dong, TrackInsight, ETF Central, at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior notice, should not be considered investment advice or a recommendation to purchase a particular security.
Shares are bought and sold at market price not net asset value (NAV). Market price returns are based upon the closing composite market price and do not represent the returns you would receive if you traded shares at other times.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. At times, a growth investing style may be out of favor with investors which could cause growth securities to underperform value or other equity securities. Since the Fund may hold foreign securities, it may be subject to greater risks than funds invested only in the U.S. These risks are more severe for securities of issuers in emerging market regions. A non-diversified Fund may invest a greater percentage of its assets in securities of a single issuer, and/or invest in a relatively small number of issuers, it is more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio.
Commodity Risk: The Fund has exposure to commodities through its and/or the Subsidiary’s investments in commodity-linked derivative instruments. Authorized Participant Concentration/Trading Risk: Only authorized participants (“APs”) may engage in creation or redemption transactions directly with the Fund. Commodity-Linked Derivatives Risk: The Fund’s investments in commodity-linked derivative instruments (either directly or through the Subsidiary) and the tracking of an Index comprised of commodity futures may subject the Fund to significantly greater volatility than investments in traditional securities.
Diversification does not assure a profit or protect against loss in a declining market.
The Bloomberg Commodity Index (“BCOM”) is designed to be a highly liquid and diversified benchmark for commodity investments via futures contracts. The Quantix Commodity Index (“QCI”) is calculated on a total return basis, which combines the returns of the futures contracts with the returns on cash collateral invested in 13-week U.S. Treasury Bills. This unmanaged index does not reflect fees and expenses and is not available for direct investment. The Quantix Inflation Index was developed by Quantix Commodities LP and is owned by Quantix Commodities Indices LLC. These indices are unmanaged and do not reflect fees and expenses and are not available for direct investment.
This information should not be considered as a recommendation to purchase or sell a particular security. The holdings mentioned may change at any time and may not represent current or future investments.
Jennison Associates LLC is the third-party subadvisor to the Harbor Long-Term Growers ETF. Quantix Commodities is the third-party subadvisor to the Harbor Commodity All-Weather Strategy ETF.
Harbor Capital Advisors, Inc.is not affiliated with TrackInsight/ETF Central
Foreside Fund Services, LLC is the Distributor of the Harbor ETFs.
Copyright © 2025 Harbor Capital Advisors, Inc. All Rights Reserved.
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