LSEQ ETF — Holdings & Analysis

large and mid-cap stocks. With a relatively high expense ratio of 2.28%, LSEQ aims to optimize returns while actively managing risk through a proprietary macroeconomic regime model that adapts to varying market conditions. Past performance does not guarantee future results.

Harbor Long-Short Equity ETF (LSEQ) (LSEQ) ETF — Price, Holdings & Analysis

The Harbor Long-Short Equity ETF (LSEQ) is a unique fund with approximately $0.02 billion in assets under management. LSEQ distinguishes itself as the first hedge fund to ETF conversion, employing both long and short positions in U.S. large and mid-cap stocks. With a relatively high expense ratio of 2.28%, LSEQ aims to optimize returns while actively managing risk through a proprietary macroeconomic regime model that adapts to varying market conditions. Past performance does not guarantee future results.

ETF Overview

LSEQ is the first known hedge fund to ETF conversion in the industry. The fund aims to optimize returns while managing risk amid evolving market conditions by balancing long and short positions in US large and mid-cap stocks. The fund utilizes a multifactor model for long positions and a dedicated short model to identify potential underperformers. The approach is a proprietary macroeconomic regime model, which classifies market environments into value, neutral, or momentum regimes. This model determines gross and net exposure levels, value, quality, profitability, and momentum. Industry group selection is based on perceived alpha opportunities, focusing on sectors exhibiting the highest return dispersion. To manage risk, the fund maintains long and short exposures to counteract downside tail risk, gauged by the Sortino ratio. Investments may include T-bills, derivatives, limited foreign exposure, and reverse repurchase agreements. LSEQ started with $3.64 million in net assets.

LSEQ, managed by Harbor, seeks to deliver optimized returns and manage risk by strategically balancing long and short positions within the U.S. large and mid-cap equity space. The fund's core strategy hinges on a multifactor model for identifying promising long positions and a dedicated short model to pinpoint potential underperformers. A proprietary macroeconomic regime model classifies market environments into value, neutral, or momentum regimes, dictating gross and net exposure levels, along with allocations to value, quality, profitability, and momentum factors. Industry group selection is driven by perceived alpha opportunities, focusing on sectors with high return dispersion. The fund's top holdings include iShares Silver Trust (4.95%), Warner Bros. Discovery Inc (3.79%), and SPDR® Gold Shares (3.41%). Sector allocations are heavily weighted towards Healthcare (22.9%), Basic Materials (16.4%), and Technology (15.9%). The fund may also invest in T-bills, derivatives, and reverse repurchase agreements.

Risk Metrics

LSEQ carries a higher expense ratio of 2.28%, which can create a significant drag on returns, especially when compared to more passively managed equity ETFs. The fund's concentrated sector allocations, particularly in Healthcare, Basic Materials, and Technology, introduce sector-specific risk. A downturn in these sectors could disproportionately impact LSEQ's performance. While the fund aims to mitigate downside risk through its long-short strategy, the effectiveness of this approach depends on the accuracy of its short model and the overall market environment. The fund's beta is 0.00, indicating very low volatility relative to the market, but this may also limit its upside potential. The fund's investments in derivatives and limited foreign exposure also introduce additional layers of complexity and potential risk. Past performance does not guarantee future results.

Expense Ratio

2.28%

What does LSEQ hold?

Holding	Weight
iShares Silver Trust (SLV)	4.95%
Warner Bros. Discovery Inc Ordinary Shares - Class A (WBD)	3.79%
SPDR® Gold Shares (GLD)	3.41%
PENN Entertainment Inc (PENN)	3.10%
Anglogold Ashanti PLC (AU)	3.03%
Newmont Corp (NEM)	2.73%
American Airlines Group Inc (AAL)	2.66%
Royal Gold Inc (RGLD)	2.66%
The Mosaic Co (MOS)	2.49%
Freeport-McMoRan Inc (FCX)	2.48%

How Is the Fund Allocated?

Sector	Weight
Healthcare	22.9%
Basic Materials	16.4%
Technology	15.9%
Consumer Cyclical	8.7%
Communication Services	8.6%
Energy	8.4%
Industrials	7.7%
Utilities	7.5%
Consumer Defensive	3.9%
Cash & Others	0.0%

Country	Weight
United States	93.0%
Other	12.6%
Bermuda	1.2%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

Harbor International Equity ETF (EPIN) (EPIN) (Equity) — 0.80% expense ratio
Harbor AlphaEdge Small Cap Earners ETF (EBIT) (EBIT) (Equity) — 0.29% expense ratio
Harbor Disruptive Innovation ETF (INNO) (Equity) — 0.75% expense ratio
Harbor Transformative Technologies ETF (TEC) (TEC) (Equity) — 0.69% expense ratio
Harbor AlphaEdge Next Generation REITs ETF (AREA) (AREA) (Equity) — 0.50% expense ratio
Harbor Alpha Layering ETF (HOLD) (HOLD) (Equity) — 0.70% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is LSEQ and what does it track?

The Harbor Long-Short Equity ETF (LSEQ) is an actively managed ETF that employs a long-short strategy within the U.S. large and mid-cap equity market.

Unlike traditional ETFs that passively track an index, LSEQ uses a multifactor model to identify long positions and a dedicated short model to pinpoint potential underperformers.

What is the expense ratio for LSEQ?

The expense ratio for the Harbor Long-Short Equity ETF (LSEQ) is 2.28%. This means that for every $10,000 invested, $228 is used to cover the fund's operating expenses annually.

This expense ratio is significantly higher than the average expense ratio for equity ETFs, which is around 0.44%.

What are the top holdings in LSEQ?

As of 2026-03-15, the top holdings in the Harbor Long-Short Equity ETF (LSEQ) are iShares Silver Trust (4.95%), Warner Bros. Discovery Inc Ordinary Shares - Class A (3.79%), and SPDR® Gold Shares (3.41%).

These holdings reflect the fund's investment strategy, which may include both equity and commodity-related investments.

Is LSEQ a good long-term investment?

Whether LSEQ is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. LSEQ's long-short strategy aims to provide downside protection, but its high expense ratio of 2.28% can impact long-term returns.

The fund's performance will depend on the effectiveness of its active management and its ability to generate alpha.

How does LSEQ compare to similar ETFs?

LSEQ stands out from many ETFs due to its actively managed long-short equity strategy and its hedge fund to ETF conversion. Its expense ratio of 2.28% is considerably higher than passively managed equity ETFs.

With AUM of approximately $0.02 billion, LSEQ is relatively small compared to more established ETFs.

Does LSEQ pay dividends?

According to the latest data, the Harbor Long-Short Equity ETF (LSEQ) has a dividend yield of 0.00%. This indicates that the fund does not currently distribute any dividends to its shareholders.

Investors seeking income-generating investments may want to consider other ETFs with higher dividend yields. The lack of dividends may be a result of the fund's investment strategy, which focuses on capital appreciation rather than income generation.