HAPS vs. ISMD

Last updated Jun 3, 2026

HAPS (Harbor Human Capital Factor US Small Cap ETF) and ISMD (Inspire Small/Mid Cap Impact ETF) are both Small Cap Blend Equities funds - HAPS tracks the Human Capital Factor Small Cap Index - Benchmark TR Gross while ISMD tracks the Inspire Small/Mid Cap Impact Equal Weight Index. Both are passively managed. Over the past 3 years, HAPS returned 12.03%/yr vs 16.75%/yr for ISMD. Their correlation of 0.93 suggests significant overlap in exposure. HAPS charges 0.60%/yr vs 0.57%/yr for ISMD.

Performance

HAPS vs. ISMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Harbor Human Capital Factor US Small Cap ETF (HAPS) and Inspire Small/Mid Cap Impact ETF (ISMD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HAPS achieves a 11.51% return, which is significantly lower than ISMD's 23.54% return.

HAPS

• 1D: -0.10%
• 1M: 1.27%
• YTD: 11.51%
• 6M: 13.23%
• 1Y: 29.51%
• 3Y*: 12.03%
• 5Y*: —
• 10Y*: —

ISMD

• 1D: 1.02%
• 1M: 5.75%
• YTD: 23.54%
• 6M: 24.96%
• 1Y: 41.80%
• 3Y*: 16.75%
• 5Y*: 8.06%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

HAPS vs. ISMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HAPS Harbor Human Capital Factor US Small Cap ETF	11.51%	8.35%	4.08%	12.44%
ISMD Inspire Small/Mid Cap Impact ETF	23.54%	4.14%	9.53%	13.78%

Correlation

The correlation between HAPS and ISMD is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (All Time) Calculated using the full available price history since Apr 14, 2023	0.93

The correlation between HAPS and ISMD has been stable across timeframes, ranging from 0.92 to 0.93 - a consistent structural relationship.

HAPS vs. ISMD - Sectors Allocation Comparison

Sectors	HAPS	ISMD
Financial Services	17.7%	15.2%
Healthcare	17.7%	9.5%
Technology	14.0%	17.3%
Industrials	13.5%	17.7%
Consumer Cyclical	8.3%	11.2%
Energy	7.2%	3.3%
Real Estate	6.7%	8.9%
Basic Materials	6.6%	5.2%
Communication Services	3.0%	2.5%
Consumer Defensive	2.9%	6.1%
Utilities	2.4%	3.3%

Return for Risk

HAPS vs. ISMD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HAPS

HAPS Risk / Return Rank: 53
HAPS Sharpe Ratio Rank: 50
HAPS Sortino Ratio Rank: 53
HAPS Omega Ratio Rank: 47
HAPS Calmar Ratio Rank: 59
HAPS Martin Ratio Rank: 56

ISMD

ISMD Risk / Return Rank: 70
ISMD Sharpe Ratio Rank: 68
ISMD Sortino Ratio Rank: 68
ISMD Omega Ratio Rank: 62
ISMD Calmar Ratio Rank: 81
ISMD Martin Ratio Rank: 70

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HAPS vs. ISMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Harbor Human Capital Factor US Small Cap ETF (HAPS) and Inspire Small/Mid Cap Impact ETF (ISMD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	HAPS	ISMD	Difference
Sharpe ratio Return per unit of total volatility	1.75	2.27	-0.53
Sortino ratio Return per unit of downside risk	2.57	3.16	-0.58
Omega ratio Gain probability vs. loss probability	1.30	1.38	-0.09
Calmar ratio Return relative to maximum drawdown	2.97	4.25	-1.28
Martin ratio Return relative to average drawdown	10.00	13.33	-3.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HAPS vs. ISMD - Sharpe Ratio Comparison

The current HAPS Sharpe Ratio is 1.75, which is comparable to the ISMD Sharpe Ratio of 2.27. The chart below compares the historical Sharpe Ratios of HAPS and ISMD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HAPS	ISMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	2.27	-0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.39	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.41	+0.16

Drawdowns

HAPS vs. ISMD - Drawdown Comparison

The maximum HAPS drawdown since its inception was -27.44%, smaller than the maximum ISMD drawdown of -44.60%. Use the drawdown chart below to compare losses from any high point for HAPS and ISMD.

Drawdown Indicators

	HAPS	ISMD	Difference
Max Drawdown Largest peak-to-trough decline	-27.44%	-44.60%	+17.16%
Max Drawdown (1Y) Largest decline over 1 year	-10.01%	-9.64%	-0.37%
Max Drawdown (3Y) Largest decline over 3 years	-27.44%	-26.64%	-0.80%
Max Drawdown (5Y) Largest decline over 5 years	—	-26.64%	—
Current Drawdown Current decline from peak	-0.26%	0.00%	-0.26%
Average Drawdown Average peak-to-trough decline	-6.14%	-8.18%	+2.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.97%	3.07%	-0.10%

Volatility

HAPS vs. ISMD - Volatility Comparison

The current volatility for Harbor Human Capital Factor US Small Cap ETF (HAPS) is 4.16%, while Inspire Small/Mid Cap Impact ETF (ISMD) has a volatility of 4.81%. This indicates that HAPS experiences smaller price fluctuations and is considered to be less risky than ISMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HAPS	ISMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.16%	4.81%	-0.65%
Volatility (6M) Calculated over the trailing 6-month period	11.71%	12.40%	-0.69%
Volatility (1Y) Calculated over the trailing 1-year period	16.98%	18.49%	-1.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.83%	20.85%	-0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.83%	23.73%	-2.90%

HAPS vs. ISMD - Expense Ratio Comparison

HAPS has a 0.60% expense ratio, which is higher than ISMD's 0.57% expense ratio.

Dividends

HAPS vs. ISMD - Dividend Comparison

HAPS's dividend yield for the trailing twelve months is around 0.51%, less than ISMD's 0.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
HAPS Harbor Human Capital Factor US Small Cap ETF	0.51%	0.57%	0.72%	0.42%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ISMD Inspire Small/Mid Cap Impact ETF	0.93%	1.21%	1.24%	1.17%	1.28%	9.35%	0.99%	0.88%	1.35%	2.02%

Frequently Asked Questions

Can I hold both HAPS and ISMD in my portfolio?

With a correlation of 0.92, HAPS and ISMD move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HAPS or ISMD?

ISMD has higher volatility (4.81%) compared to HAPS (4.16%). In terms of maximum drawdown, HAPS dropped -27.44% vs ISMD's -44.60%.

Which ETF is better, HAPS or ISMD?

On 3-year performance, ISMD leads with 16.75% vs 12.03% for HAPS. On fees, ISMD is cheaper at 0.57% per year. On volatility, HAPS has been the lower-risk option at 4.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HAPS or ISMD?

Over the 3-year period, ISMD has performed better with a 16.75% return vs 12.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HAPS or ISMD?

ISMD is cheaper with a 0.57% expense ratio, compared with 0.60% for HAPS.

Which ETF pays a higher dividend yield, HAPS or ISMD?

ISMD has the higher dividend yield at 0.93%, compared with 0.51% for HAPS.

What is the main difference between HAPS and ISMD?

HAPS tracks Human Capital Factor Small Cap Index - Benchmark TR Gross, while ISMD tracks Inspire Small/Mid Cap Impact Equal Weight Index. They also come from different issuers: Harbor and Inspire. Their fees differ too: 0.60% for HAPS and 0.57% for ISMD.

Which has better risk-adjusted returns?

ISMD currently has the higher Sharpe Ratio (2.27 vs 1.75), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.