ETF Will Be Powered by Irrational Capital’s Human Capital Factor Scores to Capture the Link Between Corporate Culture and Equity Value

Harbor Capital Advisors, Inc. (“Harbor Capital”) today launched the Harbor Corporate Culture Leaders ETF (HAPY), which aims to capture the alpha generated by companies with the strongest employee/employer relationships.

Harbor Corporate Culture Leaders ETF – The Fund’s objective is to seek to provide investment results that correspond, before fees and expenses, to the performance of the Human Capital Factor Unconstrained Index (the “Index”), which was created to quantitatively and systematically capture the lift that strong corporate culture has on a company’s future stock price.

The Index is designed to deliver exposure to equity securities of large cap U.S. companies that demonstrate high employee engagement and motivation, based on human capital scores produced by Irrational Capital LLC. Co-founded by world-renowned behavioral scientist Dan Ariely, Irrational Capital is an investment research and development firm that applies workplace behavioral science, financial acumen, and data science to capture the powerful connection between human capital and financial outcomes. Irrational Capital’s Human Capital Factor goes beyond simple check-the-box social investing by deeply understanding company culture and intrinsic employee motivation, then transforming these insights into investment strategies.

“We’re thrilled to partner with Dan Ariely and the broader team at Irrational Capital. There has never been a more important time to focus on the well-being of the relationship between companies and their most important asset, their people. With Dan and the Irrational team’s unique insights into the space we’re confident we have a compelling solution for clients interested in this new field of investing. We believe Human Capital remains misrepresented by outdated accounting rules that could lead to market inefficiencies over the longer term. Thoughtful active approaches can exploit those inefficiencies,” said Kristof Gleich, President & CIO, Harbor Capital.

“We believe we have discovered a way to quantitatively capture the powerful connection between human capital and financial outcomes in an investable way,” said Ariely. “By uncovering the capital in human capital, we help create investment options that seek to prove that doing the right thing pays. We are delighted to partner with Harbor Capital in offering investors access to the power of human capital, which so clearly demonstrates that doing the right thing pays.”

About Harbor Capital

Harbor is dedicated to helping clients achieve investment objectives with an active, cost-aware investing approach. For more than 30 years, our investment team has served as a guide for clients, developing portfolio strategies based on rigorous research and market analysis; sourcing select specialists and deep insights in each asset class; and evaluating performance to ensure that decisions remain in the best interests of our clients. Headquartered in Chicago, Harbor Capital Advisors had total assets under management of approximately $65 billion as of December 31, 2021.

Along with HAPY, Harbor’s growing ETF lineup consists of two fixed-income ETFs (SIFI, SIHY) that were launched in the fall of 2021, the Disruptive Innovation ETF (INNO) launched in December 2021, and the All-Weather Inflation Focus ETF (HGER) and Long-Term Growers ETF (WINN) launched in February 2022. Harbor Capital also offers a curated experience of mutual funds and collective investment trusts (CITs). For more information, visit www.harborcapital.com.

About Irrational Capital

Irrational Capital is an investment research firm that applies workplace behavioral science, financial acumen and data science to quantify the impact of corporate culture and employee motivation on financial performance. Through cutting edge research on large, and often proprietary, data sets, Irrational Capital works with partners to provide access to investment strategies offering exposure to the Human Capital Factor, the first systematic, quantitative and investable measurement of the link between workplace environments/culture and positive-future equity returns. Irrational Capital was founded in 2017 and is headquartered outside of Philadelphia, Pennsylvania. To learn more about Irrational Capital, please visit www.irrational.capital.

Before investing you should carefully consider a fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus. Please read the prospectus carefully before you invest. To obtain a summary prospectus or prospectus for this and other information, visit harborcapital.com or call 800-422-1050.

All investments involve risk including the possible loss of principal.

There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. The Fund may not exactly track the performance of the Index with perfect accuracy at all times. Tracking error may occur because of pricing differences, timing and costs incurred by the fund or during times of heightened market volatility.

The Fund relies on the Index provider's methodology in assessing whether a company may be considered a corporate culture leader. There is no guarantee that the construction methodology will accurately assess a company to include or exclude it from the index which could have an adverse effect on the Fund's returns. The Fund's assets may be concentrated in a particular sector or industries to the extent the Index is concentrated and is subject to the risk that economic, political, or other market conditions that have a negative effect on that sector or industry will negatively impact the value of the Fund.

Unlike mutual funds, ETFs may trade at a premium or discount to their net asset value. The ETF is new and has limited operating history to judge.

Alpha refers to excess returns earned on an investment.

Foreside Fund Services, LLC. is the Distributor of the Harbor Corporate Culture Leaders ETF.

Harbor Funds Distributors, Inc. is the Distributor of the Harbor Mutual Funds and Harbor CITs.

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