JOJO vs SCYB

JOJOFATAC Credit Rotation ETF

SCYBASchwab High Yield Bond ETF

In short

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.

SCYB Three basis points for the broad US high-yield corporate market. Schwab undercuts a category where the typical fund charges more than ten times as much, spreading the bet across roughly 1,800 bonds and paying monthly.

Stated mandate

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.

SCYB The fund follows a rules-based strategy intended to track the high-yield bond market, primarily through bonds in the Bloomberg Barclays US Corporate High Yield Total Return Index and similar derivatives.

Why people hold it

• 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.

• SCYB 0.03% a year against a category median of 0.40%. Even the cheap rivals sit above it: SPHY at 0.05%, USHY at 0.08%.
• Tracks the same Bloomberg US Corporate High Yield index as BKHY, which charges 0.22%. Same map, cheaper toll.
• Roughly 1,800 bonds, so no single issuer's blowup drives the outcome. Rules-based and passive, and it has hugged its index closely.
• A multi-billion-dollar fund that trades actively and pays monthly, which matters in a corner of the market where getting out cheaply is half the job.

Worth knowing

• 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.

• SCYB High yield means below-investment-grade credit. These bonds behave more like stocks than Treasuries when the economy sours, and the extra income is the payment for that risk.
• Launched in 2023, so it has a shorter record than rivals that have traded through more credit cycles.
• The strategy can hold derivatives alongside the bonds themselves to track the index, one layer beyond plain bond ownership.

Full JOJO profile⁠

Full SCYB profile⁠