Harbor Capital Advisors has expanded its ETF lineup with two new offerings: the Harbor Osmosis International Resource Efficient ETF (EFFI) and Harbor Emerging Markets Resource Efficient ETF (EFFE). These ETFs are managed by Osmosis Investment Management, a London-based investment manager focusing on environmentally oriented investing.
The ETFs utilize Osmosis's proprietary MoRE (Model of Resource Efficiency) quantitative model for stock selection, aiming to create diversified portfolios of resource-efficient companies. Both funds target attractive risk-adjusted returns while potentially reducing environmental footprints (carbon, water, and waste) compared to their benchmarks - the MSCI World ex USA and MSCI Emerging Markets Indices.
EFFI and EFFE are positioned as core international and emerging markets allocations respectively, with total expense ratios of 55 and 78 basis points. The portfolios exclude tobacco investments and align with UN Global Compact Principles for social and governance standards.