Harbor Health Care ETF Q4 2025 Commentary
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.
Harbor Health Care ETF Q1 2025 Commentary
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.
