ETF Evaluator: Harbor Ares Systematic High-Yield ETF () Follow This ETF

Harbor Ares Systematic High-Yield ETF Overview

Harbor Ares Systematic High-Yield ETF (SIHY) is an actively managed Taxable Bond High Yield Bond exchange-traded fund (ETF). Harbor Capital Advisors Inc launched the ETF in 2021.

The investment seeks total return. Under normal market conditions, the fund invests at least 80% of its net assets, plus borrowings for investment purposes, in a portfolio of below investment-grade corporate bonds, commonly referred to as “high yield” or “junk” bonds, or unrated securities that Ares Systematic Credit Limited considers to be of an equivalent credit quality, which may be represented by derivative instruments, including futures and swaps. The fund invests primarily in U.S. dollar denominated securities, including those of foreign issuers.

About Harbor Ares Systematic High-Yield ETF (SIHY)

There are 5 members of the management team with an average tenure of 4.16 years: Michael Harper (2021), Benjamin Brodsky (2021), Benoy Thomas (2021), Garth Flannery (2021) and Giancarlo Pesolillo (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and ICE BofA US High Yield TR USD index with a weighting of 100%. Harbor Ares Systematic High-Yield ETF has 229 securities in its portfolio. The top 10 holdings constitute 12.3% 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.

Harbor Ares Systematic High-Yield ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Harbor Ares Systematic High-Yield ETF has 11.6% 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 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.4% (87.7% domestic bond, 11.6% foreign bond and 0.0% convertible bond). Harbor Ares Systematic High-Yield ETF has 0.6% of the portfolio in cash.

Assets Under Management

The fund has $148 million in total assets, which is below the $1 billion average for the High Yield 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.

SIHY 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 Harbor Ares Systematic High-Yield ETF expense ratio is average compared to funds in the High Yield Bond category. Harbor Ares Systematic High-Yield ETF has an expense ratio of 0.48%, which is 20% higher than its category average, making the fund expense ratio grade a D. 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. Harbor Ares Systematic High-Yield ETF has a portfolio turnover rate of 48%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the High Yield Bond category.

Recently, in the month of July 2026, Harbor Ares Systematic High-Yield ETF returned -0.1%, which earned it a grade of B, as the High Yield Bond category had an average return of -0.2%. 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.

Harbor Ares Systematic High-Yield ETF has a trailing yield of 7.16%, which is above the 6.77% category average. The fund normally distributes its income monthly.

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.

Harbor Ares Systematic High-Yield ETF Grades

Year to date, the ETF has returned 2.2%, 0.6 percentage points better than the category, which translates into a grade of A. The fund has returned 6.3% over the past year (grade of A) and 8.7% over the past three years (grade of A).

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