Big Things Start Small: Harbor Capital Launches SGRW to Capture the Next Wave of Market Leadership

How SGRW Is Built

Big things start small.

SGRW is built on the premise that tomorrow’s titans are currently hidden in plain sight—small, underfollowed, and misunderstood by the broader market.

Led by the expertise of Granahan Investment Management, the fund concentrates at least 80% of its capital in U.S. small-cap companies with the rare power to compound earnings at superior rates.

A portfolio of possibility rather than chasing trends, we use a disciplined, bottom-up research engine to find well-managed businesses that the market has temporarily overlooked. We organize these opportunities into three high-impact "LifeCycle" categories:

• Pioneers: The disruptors and innovators rewriting the rules of their industries.
• Core Growth: The steady compounders providing reliable, long-term visibility.
• Special Situations: Companies at a crossroads, where a specific catalyst is set to unlock hidden value.

By blending these three distinct growth profiles into a collaborative portfolio of 120 to 160 stocks, SGRW captures the energy of small-cap innovation while smoothing the path for investors. We don’t just find growth; we invest in the future before the rest of the world catches on.

Why Investors Should Pay Attention

History shows that small-cap growth stocks often shine after long periods of large-cap dominance.

Yet this part of the market remains less efficient, creating opportunities for active managers willing to do the work.

SGRW offers access to this underappreciated segment with active oversight and a long-term mindset.

The strategy is built to look beyond short-term market noise and focus on fundamentals. By investing across industries and stages of development, SGRW seeks to participate through different phases of the economic cycle rather than relying on a single theme or outcome.

That makes it a natural complement to large-cap and passive equity allocations, helping investors broaden their sources of return and reduce concentration risk.

At the core of the strategy is Granahan Investment Management’s more than 30 years of experience in small-cap growth investing.

Their focus on deep fundamental research, direct engagement with management teams, and long-term value creation underpins SGRW’s goal. It is a strategy designed not just for where the market has been, but for where leadership may emerge next.

“We believe small-cap growth is entering a period where patient, active investors may be well rewarded,” said Kristof Gleich, President and Chief Investment Officer of Harbor Capital Advisors. “After years of large-cap dominance, valuations, innovation cycles, and economic dynamics appear increasingly favorable for smaller, faster-growing companies.”

“The Harbor Active Small Cap Growth ETF (Ticker: SGRW) brings together Granahan’s deep expertise in this space with the efficiency and accessibility of the ETF structure. We believe SGRW can play an important role in a well-diversified portfolio, and we encourage advisors to take a close look at how this strategy may enhance their portfolio construction decisions over the long term.”

SGRW is trading on the NYSE and has an expense ratio of 0.80%.

About Harbor Capital Advisors

Harbor Capital Advisors is an asset manager with an AUM of $67.2 Bill as of December 31, 2025, and is known for prudently curating a suite of active ETFs, mutual funds, and collective investment trusts from boutique managers. Advisors looking for distinct and differentiated investment options for their clients’ portfolios often connect with our obsession of finding what we believe are the best and most bold solutions that have the potential to produce compelling risk-adjusted returns.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.