Harbor Capital's New EMES ETF Taps Long-Term Growth In Emerging Markets

In a move to grab the advantage of increasing investor demand for high-conviction approaches in emerging economies, Harbor Capital Advisors launched the Harbor Emerging Markets Select ETF (NYSE:EMES), an actively managed fund concentrating on long-term, theme-based opportunities throughout the emerging world.

The fund employs a selective, bottom-up style that closes in on companies well-suited to take advantage of strong macro themes anywhere in the world, from increases in middle-class consumption to the shift to clean energy. With a limit of 50 stocks, EMES eschews the far-flung ownership of typical emerging market funds in favor of a concentrated, research-driven approach.

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Harbor Capital President and CIO Kristof Gleich said that global uncertainty is forcing investors to look outside of developed markets and the fund’s targeted strategy can tap those emerging market tailwinds and manage risk through selectivity.

The fund covers all market capitalizations and sectors but uses a thematic approach to stock selection, screening for firms with robust governance and sustainable growth drivers. Themes in the strategy include financial inclusion and consumer market evolution in Asia, Latin America, and other regions.

With $58.79 billion under management as of March 31, Harbor Capital continues to build out its ETF lineup with actively managed funds created to marry deep investment expertise with the efficiency and transparency of the ETF format. EMES is an expansion of its expanding relationship with C WorldWide and a more extended bet on concentrated, long-term positions in among the world’s most rapidly evolving markets.

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