This ETF Targets AI’s Real Beneficiaries Beyond the Usual Suspects

What Makes EPAI Different

The Harbor AI Inflection Strategy ETF is built on a clear investment premise.

Artificial intelligence is not confined to software breakthroughs or consumer-facing applications.

It represents a large-scale economic shift that is driving substantial capital investment, operational change, and demand for new infrastructure across industries.

Instead of trying to predict which AI model or application will win, EPAI targets where spending and adoption are already taking place.

The strategy focuses on companies directly benefiting from AI-related capital expenditures, such as those involved in data centers, energy systems, connectivity, and semiconductor supply chains, as well as businesses leveraging that infrastructure to enhance productivity, scale operations, and strengthen competitive positioning.

This approach is designed to capture AI as a structural economic transformation rather than a narrow technology theme.

Under normal market conditions, the fund invests primarily in companies where AI enablement or adoption is expected to play a material role in driving performance, spanning multiple segments of the AI ecosystem.

• Infrastructure enablers: These are the companies building the backbone of AI. Data center real estate and construction, power generation, cooling systems, advanced networking, computing hardware, and data storage all sit at the core of this group.
• Middleware platforms: This segment includes cloud service providers, AI platforms and tools, and enterprise software integrators that connect raw computing power to real-world applications.
• AI adopters: These are established companies using AI to enhance operations, reduce costs, and unlock new revenue streams. Sectors span healthcare, financial services, industrial manufacturing, technology, internet platforms, and consumer businesses.
• Second-order beneficiaries: Some companies benefit from AI growth without directly deploying it themselves. Energy and utility firms supporting data center demand, professional services firms helping with AI integration and training, and cybersecurity providers protecting AI-driven systems all fall into this category.

A Portfolio Built from the Ground Up

EPAI follows a bottom-up investment process, focusing on company fundamentals rather than broad thematic labels.

The manager looks for businesses with revenue growth, strong margins, solid cash flow, manageable debt, and earnings potential that may not yet be fully recognized by the market.

Statistical analysis is used alongside qualitative research to manage risks tied to valuation, earnings growth, volatility, and sector exposure.

The result is a relatively concentrated portfolio of roughly 30 to 50 holdings, with meaningful exposure to information technology and industrials.

As of January 7, 2026, the top 10 names in the fund account for a third of the total holdings and include companies like Taiwan Semiconductor, Teradyne, ASML Holding, Synopsis, Lam Research, among others.

Why Investors May Want to Pay Attention

Many AI-focused ETFs concentrate heavily on a small group of mega-cap technology stocks or early-stage companies with uncertain economics.

EPAI takes a more disciplined route, emphasizing quality companies with real cash flows and tangible exposure to AI adoption.

By broadening the lens beyond the usual suspects, the fund aims to reflect how AI is actually reshaping industries today.

From energy grids powering data centers to manufacturers embedding AI into production lines, the opportunity set is wider than many investors realize.

“AI is driving one of the largest capital investment cycles we’ve seen in years,” said Kristof Gleich, President and Chief Investment Officer at Harbor Capital Advisors. “But most investors are still crowding into many of the same stocks. EPAI is built to uncover a broader—and often overlooked—set of companies that we believe are positioned to benefit from the actual dollars being deployed.”

“AI is one of the most powerful technological forces of our time—but the biggest opportunities aren’t always front and center,” Gleich continued. “As AI models become more powerful, they demand exponentially more infrastructure—more data centers, more energy, more cooling, more interconnectivity. EPAI gives investors targeted exposure to that essential ecosystem—parts of the market most AI portfolios completely miss.”

He added, “We’re incredibly excited about this ETF, because it offers a differentiated way to participate in AI’s long-term growth potential while complementing existing technology allocations. We encourage advisors to take a closer look at EPAI as they think about portfolio construction for the next decade of innovation.”

With its launch on the New York Stock Exchange, EPAI adds a new option for investors seeking thoughtful, fundamentals-driven exposure to the AI inflection point that is unfolding across the global economy.

On the fee side, EPAI has an expense ratio of 0.88%.

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.