Harbor Osmosis International Resource Efficient ETF

Harbor Osmosis International Resource Efficient ETF (EFFI) is an actively managed fund holding about 70 to 90 large and mid-sized companies in developed markets outside the US. A computer model picks companies that emit less carbon, use less water and produce less waste than others in their sector. Its 0.55% expense ratio (yearly fee) is higher than all six similar funds compared, which average 0.12%, and it launched only in December 2024.

• The deepest fall in its price history was 6.9% (Aug 25, 2026 to Oct 8, 2026), not yet recovered.

No distribution history is available for this fund.

As of Jul 31, 2026, the fund held 72 securities; the ten largest made up 32.46% of assets.

• Over the three months to Jul 31, 2026, investors withdrew a net $2.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.25%, -1.67%, +4.58%.

EFFI does not track an index. Its subadvisor, Osmosis Investment Management US LLC, runs a quantitative strategy, meaning it is driven by rules and data. The strategy rests on the theory that resource efficiency predicts which companies will beat the MSCI World ex US Index, the fund's benchmark. Osmosis gives each company a Resource Efficiency Score based on its reported carbon emissions, water use and waste. Each company is compared only with others in its own sector. That is how Glencore, a mining company, can rank among the largest holdings: it is judged against other resource companies. Financial companies such as banks are not scored. They are held to keep the portfolio's overall profile close to the benchmark.

An optimizer then sets the holdings and their weights. It tilts the portfolio toward high-scoring companies while keeping country, sector and factor exposures close to the benchmark's. Factors are traits such as quality, volatility, debt levels and earnings yield. At least 80% of net assets must go to companies scoring in the top 60% of their sector. Up to 20% can go elsewhere to keep those weights on track. The fund excludes tobacco companies, makers of cluster munitions and anti-personnel mines, and companies that breach the United Nations Global Compact. Except in very limited cases, Osmosis follows the model's output. The portfolio is rebalanced monthly, and the prospectus reports 52% turnover.

• EFFI charges 0.55% a year, versus an average of 0.12% for the similar funds below (7th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $56 in the first year and $689 over 10 years (assuming a 5% annual return).

EFFI adds developed-market stocks outside the US, chosen on environmental data, to a portfolio built mostly on US holdings, but its high cost and short record make it a supporting piece rather than a foundation.

EFFI could add stocks from developed markets outside the US. As of July 31, 2026, Japan made up about 21% of assets and Canada about 11%. The fund's record is short. It launched in December 2024, so it was not around for the 2008, 2020 or 2022 sell-offs. Its prospectus shows a 32.87% return for 2025, and even its weakest quarter that year rose 2.96%. Its deepest drop in the available price history was 6.9%, from August 25 to October 8, 2026, and it had not recovered as of October 27, 2026. Someone who may need to sell shares in a bad year has little evidence of how it holds up. Its trailing 12-month yield was 0% as of October 27, 2026. On cost, the SEC's standard $10,000 example comes to $689 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).