HGER

HGER attempts to diversify efficiently across commodities to target the most sensitive to US-CPI. The eligible universe consists of the 24 most liquid commodity futures. Each is scored for economic significance and quality. The score considers open interest, holding and trading costs, and inflation sensitivity. A minimum of 15 commodity futures are selected for inclusion. Selected commodities can range in weight in the portfolio 2-20%, except for gold which can have a maximum of 40%. Sector weights may vary 0-50%. The index utilizes a proprietary scarcity debasement indicator to determine the type of inflationary environment that exists, to which the allocation to gold is adjusted accordingly. The index is reconstituted and reweighted quarterly. Index calculation is based on total return, which includes the futures returns plus returns from managing the fund's cash collateral. The fund invests using excess return swaps through a wholly owned Cayman Islands subsidiary, avoiding K-1 tax forms. Before March 6, 2023, the fund traded as the Harbor All-Weather Inflation Focus ETF and tracked the Harbor Inflation Index.