Harbor AlphaEdge Small Cap Earners ETF Reports Q2 2025 Performance

The Harbor AlphaEdge Small Cap Earners ETF reported a return of 5.07% for the second quarter of 2025, slightly below the performance of its designated index, which yielded 5.17%. In comparison to the broader market, the ETF notably underperformed against the Russell 2000® Index, which achieved a return of 8.50%.

The underperformance of the Harbor AlphaEdge Small Cap Earners ETF, which is designed to mirror the performance of the Harbor AlphaEdge Small Cap Earners Index, can be attributed primarily to its strategic underweight in the Industrials and Information Technology sectors. These sectors significantly outperformed the Russell 2000® Index during this period, impacting the ETF’s relative performance negatively.

As of the end of the second quarter, the Harbor AlphaEdge Small Cap Earners ETF had total net assets amounting to $9,391,338. The ETF carries a net expense ratio of 0.29%, matching its gross expense ratio, indicating that the fund has managed its operational costs effectively.

Management Insight and Strategy

The ETF is overseen by a team of experienced portfolio managers: Steve Cook, Elizabeth Despain, and Jim Erceg. Their investment philosophy emphasizes a systematic approach to identifying and capitalizing on small-cap growth opportunities. The managers focus on a diversified portfolio that aligns with the index’s performance metrics while also adjusting allocations based on market conditions.

The Harbor AlphaEdge Small Cap Earners Index, which the ETF seeks to track, is designed to include a range of small-cap companies that exhibit strong earnings growth potential. The strategy involves rigorous analysis and a selection process aimed at identifying firms that are not only growing but are also positioned to outperform their peers.

In conclusion, while the Harbor AlphaEdge Small Cap Earners ETF experienced a solid return in Q2 2025, its performance did not meet the benchmarks set by its index or the broader market. Investors and stakeholders will be keen to monitor how the ETF adjusts its strategy in response to the shifting dynamics within key sectors moving forward.