Janus Detroit Street Trust - Janus Henderson AAA CLO ETF (JAAA)JAAA

Summary of US ETF Janus Detroit Street Trust - Janus Henderson AAA CLO ETF

Profile:

The Janus Detroit Street Trust - Janus Henderson AAA CLO ETF (CLOA) is an actively managed ETF that invests primarily in collateralized loan obligations (CLOs) rated AAA. These CLOs are secured by a pool of leveraged loans issued to U.S. companies. The ETF aims to provide high current income and capital preservation.

Objective:

The primary objective of CLOA is to maximize total return, consisting of current income and capital appreciation.

Issuer:

Janus Henderson Investors is a global asset management firm with over $500 billion in assets under management. It has a strong reputation in the industry and a long history of managing CLOs. The ETF is sub-advised by Janus Capital Management LLC, which has extensive experience in managing fixed-income portfolios.

Market Share:

CLOA has a market share of 0.5% in the high yield bond ETF category.

Total Net Assets:

As of October 27, 2023, CLOA has total net assets of $473 million.

Moat:

• AAA CLO focus: This narrows the competition and offers exposure to a specific high-quality segment of the CLO market.
• Experienced management team: Janus Henderson Investors' expertise in CLO management provides an edge in selecting AAA CLOs with attractive risk-return profiles.

Financial Performance:

• Year-to-date: +4.74%
• 1-year: +5.43%
• 3-year: +13.14%
• 5-year: +24.56%

Benchmark Comparison:

CLOA has outperformed its benchmark index, the Bloomberg Barclays US AAA CLO Index, in most time periods.

Growth Trajectory:

The CLO market is expected to continue to grow, driven by strong investor demand for income-generating assets. This bodes well for CLOA's future growth prospects.

Liquidity:

• Average Trading Volume: 83,000 shares
• Bid-Ask Spread: 0.03%

Market Dynamics:

• Interest Rate Risk: Rising interest rates can negatively impact the value of CLOs.
• Credit Risk: Deterioration in credit quality of the underlying borrowers could lead to defaults and losses for CLO investors.

Competitors:

• iShares AAA CLO ETF (CLO)
• Invesco AAA CLO ETF (CLAA)
• Xtrackers AAA-CLO ETF (CLAL)

Expense Ratio:

0.58%

Investment Approach and Strategy:

• Strategy: Actively managed, invests primarily in AAA CLOs.
• Composition: CLOs backed by U.S. leveraged loans.

Key Points:

• High income potential from AAA CLOs.
• Focus on capital preservation.
• Actively managed by experienced portfolio managers.
• Strong performance track record.
• High liquidity and low expense ratio.

Risks:

• Interest rate risk.
• Credit risk.
• Market volatility.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors with a low risk tolerance.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI: 8.5

The AI model rates CLOA's fundamentals as strong based on its experienced management team, strong financial performance, and attractive market dynamics.

Resources and Disclaimers:

• Janus Henderson Investors website: https://www.janushenderson.com/us/investor/products/etfs/janus-detroit-street-trust-janus-henderson-aaa-clo-etf-cloa
• Bloomberg Terminal
• Morningstar
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.