Navigating Global Markets: A Focus on Enduring Growth
Second Quarter 2025 Performance Analysis: Underperforming the Benchmark
During the second quarter of 2025, the Harbor International Compounders Exchange Traded Fund recorded a return of 10.79%. This performance, however, did not keep pace with its designated benchmark.
Global Equity Market Dynamics and International Equities' Ascent
Despite the ETF's underperformance, the broader equity markets demonstrated positive momentum throughout the second quarter of 2025. This favorable environment propelled international equities to reach unprecedented valuation levels.
Sectoral Impact: Areas of Relative Weakness
An in-depth review of the fund's holdings revealed that stock selections within specific sectors notably hindered its relative performance. These areas included Industrials, Financials, Health Care, and Consumer Discretionary, where the chosen investments did not yield expected returns compared to their counterparts.
Long-Term Vision: The \"Evergreen\" Portfolio Strategy
The investment team remains steadfast in its commitment to a long-term perspective. The core objective is to cultivate an \"evergreen\" investment portfolio that possesses the capacity for sustained compounding, irrespective of prevailing market conditions or economic cycles.