HAPI ETF

HAPI ETF uses a proprietary method to select 150 U.S. large-cap companies with strong corporate cultures. It's an unusual source of potential alpha, but HAPI has outperformed SPY by 10%. Dan Ariely, co-founder of Irrational Capital, attempts to quantify the employer-employee relationship by focusing on intrinsic motivation, perceived compensation fairness, and limited bureaucracy. However, HAPI has not succeeded based on the human capital factor alone. As I will demonstrate, its starting universe, weighting scheme, and sector-neutral approach are crucial to the fund's success.

Some investors want to take a socially conscious approach to their portfolios. Some try to keep things more simple by investing in companies they believe are likely to be good financial performers, to support rising share prices.

According to Harbor Capital Advisors, human capital is difficult to measure yet essential to a company's success and profitability. Harbor has a suite of human capital ETFs that are based on proprietary data, offering investors exposure to the nontraditional human capital factor for the first time.

Investing in companies with strong corporate culture and social performance may enhance performance. Inefficiencies create opportunities.