Key Takeaways
- • Harbor SMID Cap Value ETF (EPSV) delivered a 22.76% return in Q2 2026, outperforming its Russell 2500 Value Index benchmark, which returned 18.5% during the same period.
- • The benchmark Russell 2500 Value Index posted broad-based strength across most sectors, with Health Care and Industrials gaining 19.4% and 15.6%, respectively, during Q2.
- • Portfolio strength across multiple holdings offset headwinds from Financials sector positioning and stock selection, demonstrating diversified performance drivers during the quarter.
- • As of October 9, 2026, EPSV's year-to-date return stood at 20.75%, outpacing its category average of 12.66%, reflecting sustained outperformance through three quarters.
Summary
Harbor SMID Cap Value ETF (EPSV) demonstrated significant outperformance in Q2 2026, delivering a 22.76% return on a net asset value (NAV) basis compared to the Russell 2500 Value Index benchmark return of 18.5%. This 4.26 percentage point alpha reflects effective security selection and positioning within the small- and mid-cap value space during a period of broad market strength.
The underlying benchmark environment was characterized by broad-based equity market performance. Health Care and Industrials sectors led gains, returning 19.4% and 15.6%, respectively, during the second quarter. This sector-wide momentum contributed to the overall 18.5% benchmark return and provided a supportive backdrop for value-oriented SMID-cap strategies.
EPSV's outperformance was driven by broad-based strength across the portfolio, which more than compensated for headwinds in specific areas. Notably, positioning and stock selection within the Financials sector created performance drags during the quarter. However, the fund's diversified holdings across other sectors and securities generated sufficient alpha to overcome these sector-specific challenges. This pattern reflects the fund's ability to leverage extensive fundamental research across the SMID-cap universe.
Through October 9, 2026, EPSV's year-to-date performance reinforced its multi-quarter outperformance trajectory, posting a 20.75% return compared to its category average of 12.66%. This 8.09 percentage point outperformance differential over nine months suggests consistent execution of the fund's value-oriented investment thesis within the small- and mid-cap equity space.
The underlying benchmark environment was characterized by broad-based equity market performance. Health Care and Industrials sectors led gains, returning 19.4% and 15.6%, respectively, during the second quarter. This sector-wide momentum contributed to the overall 18.5% benchmark return and provided a supportive backdrop for value-oriented SMID-cap strategies.
EPSV's outperformance was driven by broad-based strength across the portfolio, which more than compensated for headwinds in specific areas. Notably, positioning and stock selection within the Financials sector created performance drags during the quarter. However, the fund's diversified holdings across other sectors and securities generated sufficient alpha to overcome these sector-specific challenges. This pattern reflects the fund's ability to leverage extensive fundamental research across the SMID-cap universe.
Through October 9, 2026, EPSV's year-to-date performance reinforced its multi-quarter outperformance trajectory, posting a 20.75% return compared to its category average of 12.66%. This 8.09 percentage point outperformance differential over nine months suggests consistent execution of the fund's value-oriented investment thesis within the small- and mid-cap equity space.
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