At a glance
EBIT charges 0.29% a year, above the 0.17% average of the 8 funds most like it (the 7th cheapest of 9). It has $12.0M in assets, the 9th largest of that group; it paid 1.73% of its price in distributions over the past 12 months, annual. Over the past year it returned +16.0% with distributions reinvested (S&P 500: +11.5%), 7th of those 9 funds. Its ten largest positions make up 8.0% of the fund, out of 599 in all.
The short version
Harbor AlphaEdge Small Cap Earners ETF (EBIT) is an index fund that holds profitable small US companies from the Russell 2000. It weights each company by its profitability over the past three years rather than by its stock market value. Its index leaves out companies that lose money. Its 0.29% annual fee is above the 0.17% average for similar funds. With about $12 million in assets as of July 31, 2026, it is small and new.
Price history
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EBIT +16.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| EBIT official prospectus, to Dec 31, 2025 | — | +6.86% | — | — | — | +11.45% |
| EBIT price data to Oct 27, 2026 | +15.7% | +16.0% | — | — | — | +13.5% |
- Over the year to Oct 27, 2026, EBIT returned +16.0%, 7th of 9 among similar funds.
- Its worst full calendar year was 2025 (+6.9%); its best was 2025 (+6.9%).
- The deepest fall in its price history was 26.6% (Nov 25, 2024 to Apr 8, 2025), recovered by Dec 11, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +15.7% | — |
| 2025 | +6.9% | +6.86% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.6700 |
What's inside
As of Jul 31, 2026, the fund held 599 securities; the ten largest made up 7.99% of assets.
| Holding | Weight | |
|---|---|---|
| Navient Corp | 1.24% | |
| StoneX Group Inc | 1.14% | |
| PennyMac Financial Services Inc | 0.88% | |
| Pagseguro Digital Ltd | 0.81% | |
| StoneCo Ltd | 0.69% | |
| Marex Group Ltd | 0.68% | |
| Bread Financial Holdings Inc | 0.68% | |
| Uniti Group Inc | 0.66% | |
| CNX Resources Corp | 0.63% | |
| Diebold Nixdorf Inc | 0.57% | |
| Hilton Grand Vacations Inc | 0.53% | |
| Meritage Homes Corp | 0.53% | |
| Old National Bancorp/IN | 0.51% | |
| Scorpio Tankers Inc | 0.51% | |
| Cal-Maine Foods Inc | 0.50% |
By country
United States 90.13%Bermuda 3.96%Cayman Islands 2.09%Marshall Islands 1.39%Ireland 0.67%By asset type
Stocks 100.04%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $19K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.92%, +6.21%, -0.25%.
How it works
EBIT tracks the Harbor AlphaEdge Small Cap Earners Index. Harbor Capital Advisors, the fund's manager, designed the index, and Solactive AG calculates it. The index starts from the Russell 2000, a benchmark of 2,000 small US companies that includes real estate investment trusts (REITs). It keeps every company that passes a profitability test based on operating margin, which is operating income divided by sales. The test looks at the prior 12 quarters. A company's typical (median) rolling 12-month operating margin must be at least 1%, and so must its combined operating margin for the whole period.
Most index funds size positions by stock market value. This index instead weights each company by its profitability over the past three years compared with the other members. Membership and weights are reset twice a year. As of December 31, 2025, the index had significant exposure to the financials sector. As of July 31, 2026, the fund held 599 stocks. The largest were Navient (1.2%), StoneX Group (1.1%) and PennyMac Financial Services (0.9%), and the top 10 made up 8% of assets.
The fund uses representative sampling: it holds a group of stocks chosen to behave like the index but may not own every member. It keeps at least 80% of its assets in index stocks. It does not use leverage, and it does not move into cash when markets fall.
What it really costs
- EBIT charges 0.29% a year, versus an average of 0.17% for the similar funds below (7th of 9, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $368 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| EBIT | $30 | $93 | $163 | $368 |
In a retirement portfolio
EBIT is a young small-company fund with about $12 million in assets, and it fell 26.6% in its short life, so it fits better as a smaller add-on than as a foundation.
EBIT could add profitable small US companies to a portfolio built mostly on large ones. Its history is short. It launched July 10, 2024, so it missed the 2008, 2020 and 2022 downturns. Its only full calendar year, 2025, returned 6.86%. Even so, it fell 26.6% from November 25, 2024 to April 8, 2025. It took about eight months from that low, until December 11, 2025, to recover. A retiree forced to cash out shares near the bottom would have locked in losses.
The yield was 1.73% as of October 27, 2026, paid once a year, so the fund offers little income. It costs 0.29% a year, above the 0.17% average for similar funds. In the SEC's standard example, that comes to $368 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want small US companies but prefer an index that leaves out money-losing firms and weights the rest by three-year profitability.
- Investors comfortable with a tilt toward financials: the index had significant financials exposure as of December 31, 2025, and Navient and StoneX Group were the largest holdings.
- Long-term investors adding a modest side position who can hold through drops like the fund's 26.6% fall between November 2024 and April 2025.
Look elsewhere if
- Cost-focused investors: broad small-cap index funds like IJR (0.06%) and SPSM (0.03%) charge far less than EBIT's 0.29% expense ratio.
- Anyone seeking steady income: the yield was 1.73% as of October 27, 2026, and the fund pays only once a year.
- Those wanting a long track record or a large fund: EBIT launched July 10, 2024, and held about $12 million as of July 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| EBIT this fund | — | 0.29% | $12.0M | +16.0% | — |
| JPSE JPMorgan Diversified Return U.S. Small Cap … | 43% | 0.29% | $591.2M | +15.9% | +18.0% |
| VTWV Vanguard Russell 2000 Value ETF | 40% | 0.1% | $1.45B | +20.6% | +22.0% |
| IWN iShares Russell 2000 Value ETF | 39% | 0.24% | $14.53B | +23.9% | +19.8% |
| CSA VictoryShares US Small Cap Volatility Wtd E… | 36% | 0.35% | $24.3M | 0.0% | +7.2% |
| VIOO Vanguard S&P Small-Cap 600 ETF | 36% | 0.07% | $6.45B | +16.7% | +18.6% |
| SPSM SPDR Portfolio S&P 600 Small Cap ETF | 35% | 0.03% | $16.92B | +21.7% | +17.4% |
| IJR iShares Core S&P Small-Cap ETF | 35% | 0.06% | $111.32B | +21.7% | +17.4% |
Questions investors ask
How has EBIT performed since it launched?
It has made money but trailed most similar funds. EBIT returned 6.86% in 2025, its first full calendar year. From its July 10, 2024 launch through December 31, 2025, it averaged 11.45% a year, according to its prospectus. In the year through October 27, 2026, it returned 16%, ranking 7th of 9 among similar funds. Along the way it fell 26.6% from November 2024 to April 2025 and recovered in December 2025.
Does EBIT pay dividends?
Yes, but only once a year. EBIT paid $0.67 per share in the 12 months through October 27, 2026. That was a trailing yield of 1.73%, meaning the past year's payouts divided by the share price. The money comes from dividends paid by the companies the fund owns, so the amount can change from year to year. With one payment a year, the fund doesn't provide the monthly or quarterly cash some retirees rely on for regular bills.
What is EBIT's expense ratio?
EBIT's expense ratio is 0.29%, according to its prospectus filed February 27, 2026. The expense ratio is the yearly fee taken from fund assets. EBIT's fee is above the 0.17% average for similar funds and ranks 7th of 9 on cost. Broad small-cap index funds cost far less: iShares Core S&P Small-Cap ETF (IJR) charges 0.06% and SPDR Portfolio S&P 600 Small Cap ETF (SPSM) charges 0.03%. In the SEC's standard example, with $10,000 invested and 5% yearly returns, costs come to about $30 after one year and $368 after 10 years.
What's the difference between EBIT and JPSE?
The differences are method and size. Both charge 0.29% a year. EBIT's index includes every Russell 2000 company that passes a profitability test and weights them by three-year profitability. JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE) uses its own method. Even so, their holdings overlap by about 43%, the most of any similar fund. JPSE held about $591 million as of July 31, 2026, compared with about $12 million for EBIT. One-year returns through October 27, 2026 were close: 16% for EBIT and 15.9% for JPSE.
Could the EBIT ETF be shut down?
Yes, it could. EBIT held about $12 million in net assets as of July 31, 2026, the smallest of the nine funds in its comparison group. Its prospectus warns that the fund may never grow to, or stay at, a size that is economically viable. The board of trustees may liquidate it at any time, and the timing may be unfavorable. In a liquidation, shareholders get cash back, which can create a taxable gain in a regular brokerage account.