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 7.15%, 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.

How big is SIHY?

Harbor Ares Systematic High Yield ETF (SIHY) (SIHY) manages $149.2M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is SIHY actively managed or an index fund?

SIHY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.