Harbor International Compounders ETF

Harbor International Compounders ETF (OSEA) is an actively managed fund that holds about 30 large and mid-sized companies outside the US. Its subadvisor, C WorldWide, picks companies it expects to grow earnings steadily for five years or more. Broad international index funds hold far more stocks. OSEA is concentrated: its top 10 holdings made up 44.5% of assets as of July 31, 2026. Its 0.55% expense ratio is well above the 0.10% average of similar funds.

• Over the year to Oct 27, 2026, OSEA returned -3.0%, 7th of 7 among similar funds.
• Its worst full calendar year was 2024 (-0.7%); its best was 2023 (+20.9%).
• The deepest fall in its price history was 18.1% (Sep 26, 2024 to Apr 8, 2025), recovered by Jun 6, 2025.

As of Jul 31, 2026, the fund held 30 securities; the ten largest made up 44.51% of assets.

• Over the three months to Jul 31, 2026, investors withdrew a net $12.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.10%, -0.23%, -0.23%.

OSEA does not track an index. Its subadvisor, C WorldWide Asset Management, picks the stocks. At least 65% of total assets go into common stock of non-US companies, including companies in emerging markets. The managers look for "compounders." These are companies worth at least $5 billion when bought that the managers expect to keep growing their earnings over five years or more. They favor steady, recurring revenue, stable free cash flow (cash left after paying expenses) and returns on invested capital that can last. They also weigh ESG factors (environmental, social and governance practices), with an emphasis on governance and ethics.

The process usually produces 25 to 30 stocks. The fund held 30 as of July 31, 2026. Country and sector weights come out of stock picking, not from set targets, so the fund can lean heavily toward some places. Germany (16.3%) and the UK (16.3%) were the largest country weights. Taiwan Semiconductor (6.6%) and ASML (5.6%) were the largest holdings. The fund is non-diversified, which means it can put more money into a single company than a diversified fund can.

There is no fixed rebalancing schedule. The managers hold for the long term, and the prospectus lists a 23% portfolio turnover rate. They may sell when a company's outlook changes, when a better idea comes along or to meet redemptions. The fund may hold depositary receipts (US-traded certificates that stand for foreign shares) and may trade currencies to hedge or invest.

• OSEA charges 0.55% a year, versus an average of 0.1% 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).

OSEA is a concentrated, actively managed portfolio of about 30 non-US stocks with a short track record, so it fits better as a small add-on than as a foundation.

OSEA could add a small slice of non-US quality growth companies to a portfolio built around broader funds. Its record is short. It launched in September 2022, so it has no history through the 2008 crisis or the 2020 crash, and it missed most of the 2022 bear market. Its deepest drop was 18.1%, from September 26, 2024, to April 8, 2025. It was back at its old peak by June 6, 2025, about two months later. Its weakest calendar year was 2024, with a 0.37% loss. A record this short can't show how 30 stocks would hold up in a long slump. That matters for anyone who may need to sell in a bad year.

Income is modest: the trailing yield was 1.28% as of October 27, 2026, paid once a year. Under the SEC's standard example, costs on $10,000 come to $56 after one year and $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).