Harbor Human Capital Factor US Small Cap ETF

Harbor Human Capital Factor US Small Cap ETF (HAPS) is an index fund that holds about 200 US small-cap stocks. Research firm Irrational Capital picks them because it scores them highly for corporate culture. The fund keeps its sector weights in line with the wider small-cap market, so its bet is on culture rather than on sectors. That approach costs more: the 0.61% expense ratio is well above the 0.16% average of similar small-cap funds.

• Over the year to Oct 27, 2026, HAPS returned +19.7%, 3rd of 7 among similar funds.
• Its worst full calendar year was 2024 (+4.1%); its best was 2025 (+8.4%).
• The deepest fall in its price history was 27.4% (Nov 11, 2024 to Apr 8, 2025), recovered by Dec 10, 2025.

As of Jul 31, 2026, the fund held 195 securities; the ten largest made up 18.04% of assets.

• Over the three months to Jul 31, 2026, investors added a net $35K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.54%, +7.35%, -0.61%.

HAPS tracks the Human Capital Factor Small Cap Index. Canadian Imperial Bank of Commerce (CIBC) built the index, and Solactive AG calculates it. The starting pool is the Solactive GBS United States 2000 Index, which covers the US companies ranked 1,001 to 3,000 by free-float market value (the value of shares the public can actually trade). Irrational Capital scores these companies with its own rules-based method. The method looks at traits such as employee engagement, trust and transparency, diversity of viewpoints, and fair pay. How much each trait counts changes with the latest data, and the firm expects to refine the method over time. The top-scoring companies, about 200 of them, make it into the index.

Within each sector, stocks are weighted by float-adjusted market value, with caps on single stocks. At each rebuild, the index matches the sector weights of the starting pool. If there aren't enough qualifying stocks to fill a sector, it buys small-cap sector ETFs to make up the gap. Those holdings were 1.61% of the fund as of July 31, 2026, and holders also pay those ETFs' fees indirectly. The index is rebuilt once a year. The fund generally owns every index holding in about the same proportion, and it does not move to cash in falling markets. Portfolio turnover was 75%.

• HAPS charges 0.61% a year, versus an average of 0.16% for the similar funds below (7th of 7, cheapest first).
• Of that, 0.6% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $62 in the first year and $762 over 10 years (assuming a 5% annual return).

It is a pricier, narrowly screened small-cap fund with a short record, so it fits better as a small add-on to a broad core holding than as the core itself.

HAPS could add a tilt toward smaller US companies picked for workplace culture, alongside a broad core fund. Its record is short. It launched in April 2023, so it never went through the 2008, 2020 or 2022 sell-offs. Its deepest drop was 27.4%, from November 11, 2024 to April 8, 2025. It took about eight months to recover, getting back to its old high on December 10, 2025. Anyone who sold shares for living costs near that low would have taken a steep loss. It has not had a losing calendar year so far. The weakest was 2024, at 4.04%. Income is small: the trailing yield was 0.48% as of October 27, 2026, paid once a year. On costs, the SEC's standard example puts fees at $762 over 10 years on $10,000. Past results don't predict future ones, and a plan should weigh 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).