HYLB vs LEND

HYLBAXtrackers USD High Yield Corporate Bond ETF

LENDDSEI High Yield Bond & Alternative Credit ETF

In short

HYLB Broad-market junk bonds at index-fund pricing: 0.05% a year, a fraction of what the typical high-yield bond ETF charges, spread across roughly 1,300 issues. Running since 2016, it pays monthly.

LEND A 1995 high yield mutual fund that changed clothes. SEI reorganized its three-decade-old SIMT High Yield Bond Fund into its first fixed income ETF, pairing outside bond managers with an in-house CLO sleeve.

Stated mandate

HYLB The fund seeks to track, before fees and expenses, the Solactive USD High Yield Corporates Total Market Index. It uses a passive representative-sampling indexing approach.

LEND The Fund seeks total return and normally invests at least 80% of its net assets, plus investment borrowings, in high-yield fixed-income and, to a lesser extent, alternative-credit securities.

Why people hold it

• HYLB 0.05% expense ratio puts it at the low end of the high-yield ETF field, matching SPHY and undercutting USHY's 0.08%. Fee drag matters most where yield is the whole point.
• Total-market mandate, not a filtered slice: roughly 1,300 bonds sampled from the Solactive USD High Yield Corporates Total Market Index.
• Tracking has been tight against its stated index, and it trades actively enough to keep spreads workable. One of the cleaner implementations in the high-yield group.
• Monthly distributions, with a live record going back to a 2016 launch (through the 2020 credit shock and the 2022 rate spike).

• LEND Two engines, not one: outside sub-advisers run the high yield bond book while SEI manages the CLO allocation in-house. Most of this cohort simply tracks an index.seic.com
• Not a startup strategy. It ran as the SIMT High Yield Bond Fund from 1995, and the ETF reorganization kept the same objective, strategy and management approach.seic.com
• Wide net, multi-billion-dollar asset base: roughly 1,400 positions across below-investment-grade credit, with cash paid out quarterly.

Worth knowing

• HYLB This is the credit-risk end of the bond market. Below-investment-grade issuers default more often, and prices can fall hard when spreads widen.
• Representative sampling means it holds a subset of the index, not every bond, so results can drift slightly from the benchmark.
• Cheap, but not the floor: SCYB runs 0.03%. HYLB is also a mid-sized fund next to the largest names in the category.

• LEND Active hands cost more: 0.65% a year versus a 0.40% median for high yield bond funds, and index peers like SCYB and SPHY charge a small fraction of that.
• The alternative credit sleeve means CLOs: loan pools sliced into tranches that carry different levels of risk. Different plumbing from a plain high yield bond index.seic.com
• No declared index to measure it against, so outcomes hinge on manager and sleeve selection. Its life as an exchange-traded fund is also still short.

Full HYLB profile⁠

Full LEND profile⁠