~5.5% yield from AAA CLOs, but 2% drawdown risk vs. money market.
JAAA is a high-quality bond fund, not a cash substitute — its AAA-rated CLO tranche offers ~5-5.5% yield but carries 2% drawdown risk in credit scares.
JAAA buys the top AAA slice of CLOs, which provides a yield premium over SGOV. However, the fund's price can dip ~2% in a credit scare, making it a step beyond cash — suitable for money you don't need tomorrow, not a checking account replacement.
"These 2 Cash Funds Beat SGOV — But There’s a Catch"