JOJO vs USHY

JOJOFATAC Credit Rotation ETF

USHYAiShares Broad USD High Yield Corporate 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.

USHY The wide-angle lens on junk bonds: about 1,900 US dollar high yield corporate issues for 0.08% a year, a fifth of what the typical fund in its category charges. Broad, cheap, heavily traded, and it pays 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.

USHY The fund seeks to track an index of U.S. dollar-denominated high yield corporate bonds.

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.

• USHY Charges 0.08% a year while the median high yield fund in its cohort runs 0.40%. Cheap rent on an expensive-to-run corner of the bond market.
• Holds about 1,900 bonds against the ICE BofA US High Yield Constrained Index: the broad market, not a curated slice of the most liquid names.ishares.com
• A multi-billion-dollar fund and one of the more actively traded in high yield, which tends to keep bid-ask spreads thin even on busy days.
• Pays monthly and has tracked its index tightly since its 2017 launch, one of the closer index matches in its peer group.

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.

• USHY High yield means below-investment-grade borrowers. When credit gets stressed this asset class drops with stocks instead of cushioning them.
• Cheaper tickets sit on the same shelf: SCYB at 0.03% and SPHY at 0.05%.
• This is a fund, not a bond ladder. No maturity date hands your principal back; the basket rolls on indefinitely.

Full JOJO profile⁠

Full USHY profile⁠