JOJO vs SPHY

JOJOFATAC Credit Rotation ETF

SPHYAState Street SPDR Portfolio 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.

SPHY State Street's junk-bond workhorse: roughly 1,900 US high yield bonds in one wrapper for 0.05% a year, a fraction of what the typical high yield ETF charges, with income paid 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.

SPHY The fund seeks to track, before fees and expenses, the price and yield performance of the ICE BofA US High Yield Index.

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.

• SPHY 0.05% a year against a peer-group median about eight times higher. In high yield, the fee comes straight out of coupon income, so the gap does real work.
• Holds about 1,900 bonds tracking the ICE BofA US High Yield Index, broad enough that no single issuer's trouble dominates the portfolio.ssga.com
• Live since 2012, a multi-billion-dollar fund that trades actively and has stuck tightly to its stated index rather than drifting from the mandate.
• Distributions arrive monthly, in step with how the underlying coupons come in.

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.

• SPHY This is below-investment-grade credit. Defaults and spread moves drive the price far more than Treasury yields do, and sell-offs in this asset class can be sharp.
• Fees here are already near the floor: SCYB lists 0.03% and HYLB matches at 0.05%, so the cost edge over the strongest peers is narrow.
• Scope is US high yield corporates, full stop. No investment-grade ballast, no emerging market debt, nothing to soften a credit drawdown from inside the fund.ssga.com

Full JOJO profile⁠

Full SPHY profile⁠