Harbor Ares Systematic High Yield ETF (SIHY)

Frequently Asked Questions About SIHY

What does SIHY invest in?

Under typical market circumstances, the fund commits at least 80% of its total assets, factoring in any borrowed capital for investment, to a collection of corporate debt instruments that are rated below investment grade. These are frequently referred to as "high-yield" or "junk" bonds. Additionally, the portfolio may include unrated securities that BlueCove Limited, acting as the sub-adviser, deems to have a comparable credit quality. The fund can gain exposure to these types of investments through the use of derivative contracts, such as futures and swaps. A significant portion of its holdings consists of securities denominated in U.S. dollars, including those issued by companies outside the United States.

What is the expense ratio of SIHY?

Harbor Ares Systematic High Yield ETF (SIHY) (SIHY) charges an expense ratio of 0.48%. This is the annual fee deducted from fund assets to cover management and operations.

What is SIHY's distribution yield?

SIHY's trailing-twelve-month yield is 7.10%, calculated from the sum of distributions over the past year divided by the current price.

How does SIHY's covered-call strategy work?

SIHY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of SIHY?

Effective duration measures SIHY's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. SIHY's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of SIHY?

SIHY's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.