Harris Oakmark ETF Trust (OAKM)

Overview

The Harris Oakmark ETF Trust is an actively managed equity ETF that aims to achieve long-term capital appreciation. It focuses on investing in a concentrated portfolio of high-quality growth companies, primarily in the United States, with the potential for international exposure.

Reputation and Reliability

The ETF is managed by Harris Associates, a well-established investment management firm known for its long-term, value-oriented approach. Harris Associates has a history of managing distinct investment strategies, and Oakmark Funds are a recognized brand within the active management space.

Management Expertise

The management team, led by industry veterans from Harris Associates and Oakmark Funds, brings extensive experience in fundamental research and stock selection. Their expertise lies in identifying companies with sustainable competitive advantages and strong management teams.

Goal

To achieve long-term capital appreciation by investing in a portfolio of carefully selected, high-quality companies.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not aim to track a specific index. The strategy is based on a fundamental, research-driven approach to identify undervalued growth companies.

Composition The ETF primarily holds stocks of U.S. companies, though it may invest in foreign securities. The portfolio is typically concentrated, meaning it holds a relatively small number of stocks, to allow for high conviction in each holding.

Market Share: Information on specific market share for the Harris Oakmark ETF Trust is not readily available as it is an actively managed fund and may not be categorized by traditional market share metrics like index-tracking ETFs.

Total Net Assets (AUM): 1150000000

Key Competitors

• Vanguard Growth ETF (VUG)
• iShares Russell 1000 Growth ETF (IWF)
• Schwab U.S. Large-Cap Growth ETF (SCHG)

Competitive Landscape

The U.S. large-cap growth ETF market is highly competitive, dominated by large index-tracking ETFs from Vanguard, iShares, and Schwab. Harris Oakmark ETF Trust, being an actively managed fund with a concentrated strategy, competes by aiming for superior alpha generation. Its advantages lie in its active management and focused approach, potentially allowing for better risk-adjusted returns. However, its disadvantages include higher potential fees compared to passive ETFs and the inherent risk associated with concentrated portfolios and active management underperformance.

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Benchmark Comparison: The ETF aims to outperform its benchmark, the S&P 500 Growth Index. Its performance relative to this benchmark varies over time, with periods of outperformance and underperformance due to its active management strategy.

Expense Ratio: 0.97

Average Trading Volume

The ETF has an average daily trading volume that supports consistent trading, though it may be lower than that of larger, passive ETFs.

Bid-Ask Spread

The bid-ask spread for the ETF is generally competitive, reflecting its trading activity and the liquidity of its underlying holdings.

Market Environment Factors

The ETF is influenced by broader economic indicators such as inflation, interest rates, and GDP growth. Sector-specific trends within technology, healthcare, and consumer discretionary, which often represent growth areas, also play a significant role. Current market conditions, including geopolitical events and investor sentiment, can impact the performance of growth-oriented stocks.

Growth Trajectory

The ETF's growth trajectory is tied to the performance of its selected growth companies. Changes in strategy and holdings are driven by the portfolio managers' ongoing research and conviction in specific companies, aiming to adapt to evolving market opportunities while maintaining a long-term focus.

Competitive Edge

Harris Oakmark ETF Trust's competitive edge stems from its rigorous, research-intensive active management style. The fund employs a concentrated portfolio approach, focusing on a select group of high-quality companies with durable competitive advantages and strong management teams. This deliberate selection process, driven by deep fundamental analysis, aims to identify businesses capable of sustained long-term growth and value creation, differentiating it from passive index-tracking strategies.

Volatility

The ETF exhibits moderate to high historical volatility, characteristic of actively managed growth-oriented equity funds. Its concentrated portfolio can lead to greater price swings compared to diversified index funds.

Market Risk

The primary market risks include general equity market downturns, sector-specific risks affecting its core holdings (e.g., technology, consumer discretionary), interest rate sensitivity for growth stocks, and risks associated with individual company performance and management execution.

Ideal Investor Profile

The ideal investor for the Harris Oakmark ETF Trust is one with a long-term investment horizon, a tolerance for moderate to high volatility, and an appreciation for active management. Investors should be comfortable with a concentrated portfolio and believe in the fund's approach to identifying high-quality growth companies.

Market Risk

This ETF is best suited for long-term investors seeking capital appreciation who are looking to supplement their core holdings with actively managed exposure to growth stocks. It is less suitable for short-term traders or those seeking to track a broad market index with minimal volatility.

The Harris Oakmark ETF Trust is an actively managed ETF focused on long-term capital appreciation through a concentrated portfolio of high-quality growth companies. Managed by experienced professionals from Harris Associates, it deviates from index tracking to seek outperforming opportunities. While offering potential for superior returns, it carries higher volatility and expense ratios than passive alternatives. Its strength lies in its disciplined fundamental research and conviction-driven stock selection, making it suitable for long-term investors with a tolerance for risk.

Data Sources:

• ETF Provider Websites
• Financial Data Aggregators (e.g., Morningstar, Yahoo Finance)
• Industry Analysis Reports

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions. Market share data for actively managed ETFs can be subjective and is often estimated.