DYLD vs SCYB

DYLDDLeaderShares Dynamic Yield ETF

SCYBASchwab High Yield Bond ETF

In short

DYLD A go-anywhere income fund in a corner of the market ruled by index trackers. No benchmark to hug: the manager can move across corporate bonds, bank loans, securitized paper and sovereigns in pursuit of current income, and pays monthly.

SCYB Three basis points for the broad US high-yield corporate market. Schwab undercuts a category where the typical fund charges more than ten times as much, spreading the bet across roughly 1,800 bonds and paying monthly.

Stated mandate

DYLD The Fund seeks current income.

SCYB The fund follows a rules-based strategy intended to track the high-yield bond market, primarily through bonds in the Bloomberg Barclays US Corporate High Yield Total Return Index and similar derivatives.

Why people hold it

• DYLD No index to hug. The mandate lets it roam corporate bonds, Treasuries and agencies, bank loans, convertibles, asset-backed and mortgage-backed paper, foreign sovereigns and private debt.sec.govsec.gov 2
• One job, stated plainly: current income. Net investment income goes out monthly, with realized capital gains typically distributed once a year in December.
• At least 80% of assets stay in a diversified pool of fixed income instruments, so the flexibility works inside a defined bond sandbox rather than drifting somewhere else entirely.sec.gov
• Ordinary 1940 Act fund structure: exchange-traded shares, 1099 tax reporting rather than a K-1.

• SCYB 0.03% a year against a category median of 0.40%. Even the cheap rivals sit above it: SPHY at 0.05%, USHY at 0.08%.
• Tracks the same Bloomberg US Corporate High Yield index as BKHY, which charges 0.22%. Same map, cheaper toll.
• Roughly 1,800 bonds, so no single issuer's blowup drives the outcome. Rules-based and passive, and it has hugged its index closely.
• A multi-billion-dollar fund that trades actively and pays monthly, which matters in a corner of the market where getting out cheaply is half the job.

Worth knowing

• DYLD 0.75% a year is the toll for the active mandate. The index-tracking core bond funds at the top of this group, BND and SPAB among them, charge a small fraction of that.
• Small asset base and thin trading, so spreads can run wider than in the giant core bond ETFs. Order size and timing matter more here.
• In a crowded aggregate-bond field, it sits in the lower ranks, where cheap, broad index trackers set the bar.

• SCYB High yield means below-investment-grade credit. These bonds behave more like stocks than Treasuries when the economy sours, and the extra income is the payment for that risk.
• Launched in 2023, so it has a shorter record than rivals that have traded through more credit cycles.
• The strategy can hold derivatives alongside the bonds themselves to track the index, one layer beyond plain bond ownership.

Full DYLD profile⁠

Full SCYB profile⁠