The Fund seeks total return by mainly investing in below investment-grade (high yield) corporate bonds. During the third quarter, the Harbor Scientific Alpha High Yield ETF returned 2.70% (NAV), outperforming its benchmark, the ICE BofA US High Yield Index (H0A0), which returned 2.40%. The outperformance was driven by security selection across several sectors.
During the first quarter, the Harbor Scientific Alpha High Yield ETF (“Fund”) returned 0.56% (at NAV), underperforming its benchmark, the ICE BofA US High Yield Index (H0A0), which returned 0.94%. Performance was driven by security selection across several sectors, most notably Energy, Electronics, and Information Technology. The Fund seeks to be broadly neutral in duration and yield curve versus its benchmark.