HYLB vs JOJO

HYLBAXtrackers USD High Yield Corporate Bond ETF

JOJOFATAC Credit Rotation ETF

In short

HYLB Broad-market junk bonds at index-fund pricing: 0.05% a year, a fraction of what the typical high-yield bond ETF charges, spread across roughly 1,300 issues. Running since 2016, it pays monthly.

JOJO A high-yield bond fund that owns no junk bonds. JOJO parks cash in Treasuries and sells vertical credit spreads on the S&P 500, Nasdaq 100 and Russell 2000 for income, at 1.24% net of a waiver through December 31, 2026.

Stated mandate

HYLB The fund seeks to track, before fees and expenses, the Solactive USD High Yield Corporates Total Market Index. It uses a passive representative-sampling indexing approach.

JOJO The fund seeks enhanced yield by holding U.S. Treasury bills and/or bonds while using vertical credit spreads on major equity indexes. Its options overlay may use up to 90% exposure and is collateralized by Treasury securities.

Why people hold it

• HYLB 0.05% expense ratio puts it at the low end of the high-yield ETF field, matching SPHY and undercutting USHY's 0.08%. Fee drag matters most where yield is the whole point.
• Total-market mandate, not a filtered slice: roughly 1,300 bonds sampled from the Solactive USD High Yield Corporates Total Market Index.
• Tracking has been tight against its stated index, and it trades actively enough to keep spreads workable. One of the cleaner implementations in the high-yield group.
• Monthly distributions, with a live record going back to a 2016 launch (through the 2020 credit shock and the 2022 rate spike).

• JOJO The yield engine is options premium, not credit risk: Treasury bills and bonds sit as collateral while the fund sells index credit spreads.
• The overlay has a documented ceiling in the prospectus: up to 90% exposure, collateralized by Treasury securities, inside a standard 1940 Act ETF.
• Income arrives monthly, and the fund has been running this playbook since its July 2021 launch.

Worth knowing

• HYLB This is the credit-risk end of the bond market. Below-investment-grade issuers default more often, and prices can fall hard when spreads widen.
• Representative sampling means it holds a subset of the index, not every bond, so results can drift slightly from the benchmark.
• Cheap, but not the floor: SCYB runs 0.03%. HYLB is also a mid-sized fund next to the largest names in the category.

• JOJO Cost runs above the category: 1.24% net of a waiver through December 31, 2026, and 1.51% gross, against index peers like SCYB at 0.03% and SPHY at 0.05%.
• Sold credit spreads lose money when an index runs past the short strike. Treasury collateral backs the trade; it does not cap that market risk.
• A small, lightly traded fund, so bid-ask spreads can run wider than at the category's giants.

Full HYLB profile⁠

Full JOJO profile⁠