SEI has launched the SEI High Yield Bond & Alternative Credit ETF , its first fixed income ETF, after reorganizing the SIMT High Yield Bond Fund into an ETF structure. The actively managed ETF keeps the mutual fund's long-standing investment objective, strategy, and portfolio management approach intact while shifting investors into a more liquid and potentially lower-cost ETF wrapper.

The ETF seeks total return through exposure to sub-investment-grade and high-yield fixed income securities, blending traditional junk bond allocations with alternative credit exposure through collateralized loan obligations, or CLOs. SEI said the strategy leverages more than 20 years of CLO management experience alongside its manager-research platform to source differentiated credit strategies across multiple market cycles.

"Reorganizing this long-standing mutual fund into an ETF is a natural next step in evolving our investment platform," said Robert Hum, Head of Investment Product Development and Activation at SEI. Hum added that the ETF structure offers investors "a more efficient and transparent way to access specialized credit markets."

Key features of the ETF include:

Focus on sub-investment-grade, high-yield fixed income securities

Combines a multi-manager high yield bond allocation with an internally managed CLO sleeve

Expense Ratio: 65 basis points

Designed to provide exposure to both traditional and alternative credit markets in one vehicle

Targets credit opportunities across both large and small issuers

Built on a strategy with a 30-year track record carried over from the mutual fund

Aims to broaden access to institutional-style credit strategies that historically required higher minimum investments

The launch expands SEI's footprint in the rapidly growing active fixed income ETF market, where issuers are increasingly packaging institutional-style credit strategies into exchange-traded products. As of March 31, SEI said it manages, advises, or administers approximately $1.9 trillion in assets.

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