Harbor Human Capital Factor US Large Cap ETF

Harbor Human Capital Factor US Large Cap ETF (HAPI) tracks the Human Capital Factor Large Cap Index. The index holds about 150 large US companies that the research firm Irrational Capital scores highly for corporate culture, including employee engagement and fair pay. Its sector weights are reset to match a 500-company US index, so its sector mix stays close to the broad market's. The trade-off is cost: its 0.35% expense ratio is well above the 0.10% average for similar funds.

• Over the year to Oct 27, 2026, HAPI returned +12.2%, 5th of 9 among similar funds.
• Its worst full calendar year was 2025 (+16.3%); its best was 2023 (+30.3%).
• The deepest fall in its price history was 19.5% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 26, 2025.

As of Jul 31, 2026, the fund held 156 securities; the ten largest made up 42.39% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.57%, -0.63%, +1.33%.

HAPI is an index fund. It aims to match the Human Capital Factor Large Cap Index before fees, and it keeps at least 80% of its assets in the index's securities. The Canadian Imperial Bank of Commerce (CIBC) developed the index, and Solactive calculates it. The index starts with the Solactive GBS United States 500 Index, which covers about the 500 largest US companies. Any of those that appear on Irrational Capital's list of high scorers get in. Irrational Capital builds its scores partly from employee survey data. It looks at traits such as engagement, trust and transparency, diversity of viewpoints and fair pay. How much each trait counts changes over time.

Within each sector, stocks are weighted by float-adjusted market value, meaning the value of shares available to trade. Single positions are capped. Once a year, when the index is rebuilt, it copies the sector weights of the 500-company universe. If a sector doesn't have enough high-scoring companies to fill its weight, the index adds sector ETFs to make up the gap. Holders then pay those funds' fees indirectly.

The fund generally holds every security in the index in about the same proportion. It does not move to cash when markets fall. Portfolio turnover was 27%. One risk: the scores rely on third-party survey data that may be incomplete or inaccurate.

• HAPI charges 0.35% a year, versus an average of 0.1% for the similar funds below (9th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $443 over 10 years (assuming a 5% annual return).

It spreads money across about 156 large US companies in every major sector, with sector weights kept in line with a broad 500-stock index.

HAPI could serve as the main US large-company stock fund in a portfolio, but its record is short. It launched on October 12, 2022, so it has no history through the 2008, 2020 or 2022 market crashes. Its weakest calendar year was 2025, and that was still a 16.3% gain. Its deepest drop was 19.5%, from February 19 to April 8, 2025. It had fully recovered by June 26, 2025, about 2.6 months later. Retirees who had to withdraw money near that low would have cashed out at depressed prices. Income is small: the trailing yield was 0.78% as of October 27, 2026, paid once a year. The fund costs 0.35% a year, which comes to $443 over 10 years in the SEC's standard $10,000 example. Past results don't predict future returns, and a plan should weigh the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.