HAPI: HARBOR HUMAN CAPITAL FACTOR US LARGE CAP ETF
ETF Education Report: HARBOR HUMAN CAPITAL FACTOR US LARGE CAP ETF (HAPI)
What this ETF is trying to do
The HARBOR HUMAN CAPITAL FACTOR US LARGE CAP ETF (HAPI) is an exchange-traded fund that focuses on large U.S. companies. While the specific strategy isn't detailed here, the fund holds a variety of well-known companies across different industries.
What the numbers show
The current price of HAPI is $46.48. Looking at the history, we can see how the share price has moved:
• Year-to-Date (YTD): The price return is approximately 13.26%.
• One Year: The share-price return was approximately 15.18%.
• Three Years: The share-price return was approximately 80.67%.
It is important to understand the difference between price return and total return. Price return only tracks how much the share price goes up or down. Total return includes both the price change and any cash distributions (dividends) paid out to investors.
For HAPI, the total return figures are higher than the price returns. For example, the one-year total return was approximately 16.19%, while the price return was 15.18%. Over three years, the total return was approximately 84.85%, compared to a price return of 80.67%.
Income and distribution explanation
HAPI provides some cash income through distributions. The distribution yield is approximately 0.76%. This number represents the cash paid out relative to the ETF's price. The fund has an irregular distribution frequency, meaning it does not pay out on a set schedule like every month or every quarter. In the last 12 months, there was one distribution.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly over time. Some investors worry about this if they see a falling share price. However, for HAPI, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are the top holdings in the portfolio (note that this is a partial list):
• Apple Inc (5.81%)
• Amazon.com Inc (5.60%)
• Microsoft Corp (5.55%)
• Nvidia Corp (5.20%)
• Alphabet Inc Class A (5.06%)
• Meta Platforms Inc Class A (4.70%)
• JPMorgan Chase & Co (3.19%)
• Cisco Systems Inc (3.06%)
• Netflix Inc (2.42%)
• Eli Lilly and Co (2.35%)
Pros
• The fund has shown positive price returns over the one-year and three-year periods.
• The total return is higher than the price return, meaning distributions added value.
• No price erosion was detected based on the current erosion score.
Cons
• The distribution yield is relatively low at approximately 0.76%.
• Distributions are irregular and do not happen on a frequent schedule.
Beginner takeaway
When looking at HAPI, it is helpful to distinguish between the share price movement and the total return. This ETF has seen growth in both its share price and its total return over the last three years. Always remember that a distribution yield tells you about cash payments, but it is not the same thing as your total return.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | MICROSOFT CORP | MSFT | 5.76% |
| 2 | NVIDIA CORP | NVDA | 5.72% |
| 3 | APPLE INC | AAPL | 5.70% |
| 4 | AMAZON.COM INC | AMZN | 5.63% |
| 5 | META PLATFORMS INC CLASS A | META | 5.05% |
| 6 | ALPHABET INC CLASS A | GOOGL | 4.97% |
| 7 | CISCO SYSTEMS INC | CSCO | 3.19% |
| 8 | JPMORGAN CHASE & CO | JPM | 2.92% |
| 9 | ELI LILLY AND CO | LLY | 2.33% |
| 10 | NETFLIX INC | NFLX | 2.08% |