LEND vs SCYB

LENDDSEI High Yield Bond & Alternative Credit ETF

SCYBASchwab High Yield Bond ETF

In short

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.

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

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.

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

• 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.

• 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

• 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.

• 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 LEND profile⁠

Full SCYB profile⁠