- Harbor Capital Advisors launches the Harbor Transformative Technologies ETF (TEC, Financial), extending a 50-year partnership with Jennison Associates.
- The fund seeks innovative companies poised for significant growth across various industries and market cap spectrums.
- TEC is benchmarked against the Nasdaq-100 Index and includes a 20% allocation to companies outside the United States.
Harbor Capital Advisors, Inc. has announced the addition of the Harbor Transformative Technologies ETF (TEC) to its suite of actively managed ETFs. This move further strengthens Harbor's longstanding partnership with Jennison Associates, who will manage the new ETF. Jennison brings over half a century of growth equity investing experience, targeting companies with disruptive technologies that could significantly expand their market caps over time.
The ETF is designed to hold 35–60 stocks, with an investment strategy that spans industries and market capitalizations, allowing up to 20% of its holdings to be based outside the United States. Benchmarking against the Nasdaq-100 Index, TEC intends to offer exposure beyond information technology, potentially investing in transformative healthcare and fintech companies, among others.
Kristof Gleich, President & CIO at Harbor, emphasized the ETF's focus on transformative technologies, stating that the fund aims to include companies that drive significant technological advancements. TEC adopts a bottom-up research approach to identify companies leveraging technology for market expansion or innovation within existing markets. Key themes may include AI-augmented cloud computing, AI-driven semiconductor development, and cybersecurity.
With an expense ratio of 69 basis points, the ETF is positioned as a satellite portfolio or core U.S. equity holding for growth-oriented investors. Harbor Capital Advisors manages assets worth $58.79 billion as of March 31, 2025. Investors are advised to carefully review the investment objectives, risks, charges, and expenses before committing to TEC or any other investment funds offered by Harbor.
