Harbor EMES ETF Q4 2025 Performance Review

Quarterly Performance Summary

In the fourth quarter of 2025, the Harbor Emerging Markets Select ETF recorded a return of 3.26% based on its net asset value. This performance lagged behind the benchmark MSCI Emerging Markets Index, which achieved a stronger return of 4.73% over the same timeframe. Several factors influenced this relative underperformance, particularly in specific sectors where investment decisions did not align optimally with market movements.

The most significant detractors from the fund’s relative performance stemmed from stock selections within the Consumer Discretionary, Consumer Staples, and Financials sectors. These areas experienced challenges that impacted the overall results negatively when compared to the broader index. Despite these setbacks, there were notable bright spots elsewhere in the portfolio.

On a positive note, stock picks in the Information Technology, Industrials, and Real Estate sectors contributed favorably to the relative performance during this period. These sectors provided the additive value that helped mitigate some of the losses from other areas, demonstrating the portfolio’s diversified approach even amid mixed outcomes.

Investment Philosophy

The Harbor Emerging Markets Select ETF is designed to deliver targeted exposure to high-quality equities sourced from emerging market countries and industries. It employs C WorldWide’s distinctive investment strategy, which emphasizes a concentrated portfolio and a long-term orientation. This approach aims to identify and hold onto promising opportunities that can generate sustained value for investors over extended periods. By focusing on quality and conviction-based selections, the fund seeks to navigate the complexities of emerging markets while pursuing superior risk-adjusted returns.