The Harbor Long-Term Growers ETF (WINN) concluded the fourth quarter of 2025 with a return of -0.19% (NAV), which was below its benchmark, the Russell 1000® Growth Index, which achieved a 1.12% return. This period saw U.S. equity markets experience moderate growth, rounding out a generally strong year. However, WINN's specific holdings, such as Netflix, Meta, Apple, Nike, and Cadence Design, contributed negatively to its overall performance. The fund's investment philosophy centers on identifying U.S. companies with strong potential for long-term revenue and earnings growth through a combination of bottom-up research and fundamental analysis.
During the final quarter of 2025, several factors influenced the ETF's performance. The broader U.S. equity market, while concluding a robust year, presented challenges for certain growth-oriented investments. Specifically, the fund's positioning in sectors like Communication Services and Information Technology, coupled with its particular stock selections, proved to be a drag on returns. For example, an underweight allocation to Apple, combined with underperforming positions in Netflix and Meta, notably impacted the fund's relative performance against its benchmark.
The Harbor Long-Term Growers ETF adheres to an investment strategy focused on identifying and investing in U.S. companies demonstrating characteristics of sustainable long-term growth. This approach involves a meticulous bottom-up, fundamental analysis to pinpoint businesses with strong revenue and earnings potential. The fund's managers aim to construct a portfolio of high-quality companies that possess enduring competitive advantages and a commitment to innovation, believing these attributes will drive superior long-term returns, even amidst market volatility and macroeconomic uncertainties.
Looking ahead, despite the recent underperformance and ongoing market unpredictability, the Harbor Long-Term Growers ETF remains committed to its core investment philosophy. The strategy continues to prioritize a disciplined, research-intensive process to select companies with robust business models and significant growth prospects. This steadfast approach is designed to navigate various market conditions and ultimately deliver above-average long-term growth for its investors, focusing on intrinsic value and fundamental strength rather than short-term market fluctuations.