ETF Evaluator:
Sterling Capital Enhanced Core Bond ETF ()
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(as of Aug 26)
Best Performing in Intermediate Core-Plus Bond Over the Last Year
| 8.9% | Infrastructure Capital Bond Income ETF (BNDS) |
| 5.2% | Monarch Ambassador Income ETF (MAMB) |
| 4.1% | SanJac Alpha Core Plus Bond ETF (SJCP) |
| 4.1% | F/m Opportunistic Income ETF (ZHOG) |
| 3.9% | PIMCO Active Bond ETF (BOND) |
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ETF Details
Sterling Capital Enhanced Core Bond ETF Overview
Sterling Capital Enhanced Core Bond ETF (SCEC) is an actively managed Taxable Bond Intermediate Core-Plus Bond exchange-traded fund (ETF). Sterling Capital Funds launched the ETF in 2025.
The investment seeks high level of current income and a competitive total return.
Under normal circumstances, at least 80% of its net assets plus borrowings for investment purposes in a diversified portfolio of bonds, including: securities issued or guaranteed by the U.S. government, its agencies or instrumentalities, corporate bonds, asset-backed securities, mortgage-backed securities, including commercial mortgage-backed securities and collateralized mortgage obligations, CLOs, municipal securities, restricted securities, and bonds that are below investment grade, which are commonly referred to as “high yield” or “junk” bonds.
About Sterling Capital Enhanced Core Bond ETF (SCEC)
There are 3 members of the management team with an average tenure of 1.38 years: Mark Montgomery (2025), Peter Brown (2025) and Robert Brown (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
Sterling Capital Enhanced Core Bond ETF has 354 securities in its portfolio. The top 10 holdings constitute 19.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Sterling Capital Enhanced Core Bond ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Sterling Capital Enhanced Core Bond ETF has 4.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.5% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 97.9% (93.6% domestic bond, 4.3% foreign bond and 0.0% convertible bond). Sterling Capital Enhanced Core Bond ETF has 1.5% of the portfolio in cash.
Assets Under Management
The fund has $603 million in total assets, which is below the $2 billion average for the Intermediate Core-Plus Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
SCEC Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Sterling Capital Enhanced Core Bond ETF expense ratio is below average compared to funds in the Intermediate Core-Plus Bond category. Sterling Capital Enhanced Core Bond ETF has an expense ratio of 0.39%, which is 11% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Sterling Capital Enhanced Core Bond ETF has a portfolio turnover rate of 67%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 157% for the Intermediate Core-Plus Bond category.
Recently, in the month of July 2026, Sterling Capital Enhanced Core Bond ETF returned -1.5%, which earned it a grade of F, as the Intermediate Core-Plus Bond category had an average return of -1.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Sterling Capital Enhanced Core Bond ETF has a trailing yield of 4.96%, which is above the 4.67% category average.
The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Sterling Capital Enhanced Core Bond ETF Grades
Year to date, the ETF has returned -0.7%, 0.5 percentage points worse than the category, which translates into a grade of F. The fund has returned 2.6% over the past year (grade of F).
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SCEC Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| SCEC Return (NAV) | -1.5% | -0.9% | 2.6% | na | na | na |
| SCEC Return (Price) | -1.5% | -0.9% | 2.6% | na | na | na |
| NAV +/- Price Return | -0.003% | 0.037% | -0.018% | na | na | na |
| Intermediate Core-Plus Bond Avg | -1.2% | -0.6% | 3.2% | 4.6% | 0.4% | 2.1% |
| SCEC Grade (NAV) | F | F | F | na | na | na |
| +/- Category (NAV) | -0.3% | -0.2% | -0.6% | na | na | na |
| SCEC Tax-Cost Ratio | na | na | 2.0% | na | na | na |
SCEC Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| SCEC Return (NAV) | -0.7% | na | na | na | na | na | na | na | na | na | na |
| SCEC Return (Price) | -0.8% | na | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | 0.160% | na | na | na | na | na | na | na | na | na | na |
| Intermediate Core-Plus Bond Avg | -0.2% | 7.5% | 3.0% | 6.6% | -13.2% | -0.7% | 8.0% | 9.8% | -0.2% | 4.3% | 4.9% |
| SCEC Grade (NAV) | F | na | na | na | na | na | na | na | na | na | na |
| +/- Category | -0.5% | na | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | 5.0% |
| Total Assets: | $ 603 Mil |
| Share Class Assets: | $ 603 Mil |
| Turnover: | 67.0% |
| Expense Ratio: | 0.39% |
| Index Fund: | No |
| Index Tracked: | N/A |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Monthly |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 1.4 years | |||
| Average Tenure: 1.4 years | |||
| Managers (Year): Montgomery Mark (2025), Brown Peter (2025), Brown Robert (2025) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 354 |
| % in Top 10 Holdings: | 19.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 4.3% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.5% |
| Domestic Bond: | 93.6% |
| Foreign Bond: | 4.3% |
| Convertible Bond: | 0.0% |
| Other: | 0.2% |
| Cash: | 1.5% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Sterling Capital Funds |
| Phone Number: | 888-637-7798 |
| Website: | |
| Inception Date: | March 13, 2025 |
Expenses and Fees
| Expense Ratio (%): | 0.39% (Rating: Below Avg) |
| Category Average Expense Ratio (%): | 0.44% |
