Harbor Health Care ETF (MEDI)·Financial Services
During the fourth quarter, the Harbor Health Care ETF returned 10.43% (NAV), underperforming the Russell 3000® Growth Health Care Index, which returned 16.71%. The underperformance was primarily driven by stock selection and relative underexposure to higher-beta names, particularly within development-stage biotechnology and more speculative areas of medtech. From a factor perspective, the ETF's overweight exposure to volatility was the largest tailwind to relative performance, offsetting a headwind from an underweight exposure to size.