During Q2 2026, the Harbor Dividend Growth Leaders ETF returned 10.26% (NAV), underperforming the style benchmark and its primary benchmark. The top five contributors to relative performance during the quarter included Dell Technologies, Broadcom, Cummins, Rockwell Automation and Walmart. The bottom five detractors from relative performance included Rollins, Salesforce, Hershey, UnitedHealth and Bunge Global.
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.