HAPI vs MGV

HAPICHarbor Human Capital Factor US Large Cap ETF (HAPI)

MGVAVanguard Morningstar Mega Cap Value ETF

In short

HAPI Most factor funds screen balance sheets. HAPI screens culture, tracking an index that picks roughly 150 U.S. large caps using a proprietary corporate-culture score. A human-capital bet in a plain index wrapper.

MGV Most "value" ETFs slide down into mid caps. MGV stays at the very top of the US market and buys the value half of it for five basis points. Vanguard's plain, cheap way to own the old-guard giants.

Stated mandate

HAPI The Fund uses an indexing strategy to track the Human Capital Factor Large Cap Index, investing at least 80% of assets in index securities. The index selects roughly 150 U.S. companies using a proprietary corporate-culture scoring methodology.

MGV The ETF seeks to track the Morningstar US Mega Cap Value Index and provides passive, diversified exposure to the largest value stocks in the U.S. market.

Why people hold it

• HAPI A genuinely different screen. The index selects its U.S. large caps on a corporate-culture score rather than the usual value, size or momentum plumbing.
• No black-box trading overlay. It is a straightforward indexing strategy that keeps at least 80% of assets in the index's own securities.
• Spread across roughly 160 U.S. large caps, so the culture screen arrives as a diversified portfolio rather than a concentrated thematic bet.
• Live since 2022 with a real asset base in the hundreds of millions. Past the fragile launch-week stage for a niche idea.

• MGV At 0.05% it is the cheapest fund in its factor peer group, where the median charges 0.28%. It undercuts fellow top-rated peers SIZE (0.15%) and SUSA (0.25%).vanguard.com
• Launched December 2007, straight into the crash, and now a multi-billion-dollar fund. Long history, quarterly distributions, Vanguard plumbing behind it.
• One of the strongest overall showings in its US factor peer group, built on cost and staying power rather than a clever screen.

Worth knowing

• HAPI At 0.35% a year it prices above the typical U.S. factor ETF. Broad factor tilts like SIZE (0.15%) or MGV (0.05%) cost far less if the culture angle isn't the draw.
• Thinly traded next to the giants of its category, so limit orders and trading during regular market hours matter more here.
• The culture score is proprietary, and with a 2022 launch there's limited history showing how the screen behaves across a full market cycle.

• MGV About 130 names, all mega caps. The biggest holdings carry real weight, and small and mid caps are absent by design.
• It tracks a Morningstar index of the largest US value stocks, so it leaves out the market's growth giants and can move very differently from a total-market fund.vanguard.com
• Moderately traded rather than a household-name ticker, so limit orders and mid-session trading matter more here than with the very largest index ETFs.

Full HAPI profile⁠

Full MGV profile⁠