Janus Henderson Mortgage-Backed Securities ETF (JMBS)

Overview of Janus Henderson Mortgage-Backed Securities ETF (JHA):

Profile: JHA is an actively managed ETF that invests primarily in agency mortgage-backed securities (MBS). It aims to provide investors with exposure to the U.S. housing market and generate income through interest payments on the underlying securities.

Objective: The primary investment goal is to maximize total return, consisting of capital appreciation and current income, through investments in agency mortgage-backed securities.

Issuer: Janus Henderson Investors is a global asset management firm with a long history and strong reputation in the industry. The company manages over $422 billion in assets across various investment strategies.

Market Share: JHA has a market share of approximately 0.5% in the mortgage-backed securities ETF category.

Total Net Assets: As of October 26, 2023, JHA has total net assets of $2.42 billion.

Moat: JHA's competitive advantages include its:

• Experienced management team: The portfolio management team has a strong track record of managing fixed income investments.
• Active management approach: The team actively manages the portfolio to identify opportunities and mitigate risks.
• Focus on agency MBS: JHA focuses on agency MBS, which are generally considered to be less risky than non-agency MBS.

Financial Performance: Over the past three years, JHA has generated an annualized return of 4.2%, outperforming its benchmark index, the Bloomberg US MBS Index, which returned 3.8% during the same period.

Liquidity: JHA has an average daily trading volume of approximately 250,000 shares, indicating good liquidity. The bid-ask spread is typically around 0.02%, which is relatively low.

Market Dynamics: The following factors can affect JHA's market environment:

• Changes in interest rates: Rising interest rates can negatively impact the value of mortgage-backed securities.
• Economic conditions: A strong economy can lead to increased demand for mortgages, which can benefit mortgage-backed securities.
• Government policies: Government policies related to housing and the mortgage market can impact the performance of mortgage-backed securities.

Competitors: Key competitors of JHA include iShares MBS ETF (MBB) and Vanguard Mortgage-Backed Securities ETF (VMBS). MBB has a market share of 45%, while VMBS has a market share of 35%.

Expense Ratio: JHA's expense ratio is 0.45%.

Investment approach and strategy:

• Strategy: JHA actively manages its portfolio to identify opportunities and mitigate risks.
• Composition: The ETF primarily invests in agency mortgage-backed securities, including government-sponsored entities like Fannie Mae, Freddie Mac, and Ginnie Mae.

Key Points:

• JHA provides investors with exposure to the U.S. housing market through agency mortgage-backed securities.
• The ETF has a strong track record of performance and is actively managed by an experienced team.
• JHA has a relatively low expense ratio and good liquidity.

Risks:

• Interest rate risk: Rising interest rates can negatively impact the value of mortgage-backed securities.
• Prepayment risk: Borrowers may choose to repay their mortgages early, which can reduce the value of mortgage-backed securities.
• Credit risk: The value of mortgage-backed securities can be affected by the creditworthiness of the underlying borrowers.

Who Should Consider Investing:

• Investors seeking income and capital appreciation through exposure to the U.S. housing market.
• Investors with a low to moderate risk tolerance.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

8.5/10

JHA receives a strong rating based on its fundamentals. The ETF has a solid track record of performance, a strong management team, and a focus on agency mortgage-backed securities, which are generally considered to be less risky than non-agency MBS. Additionally, the ETF has a relatively low expense ratio and good liquidity.

However, investors should be aware of the potential risks associated with mortgage-backed securities, including interest rate risk, prepayment risk, and credit risk.

Resources and Disclaimers:

• Janus Henderson Investors website: https://www.janushenderson.com/us/en/home.html
• ETF.com: https://etf.com/JHA
• Morningstar: https://www.morningstar.com/etfs/arcx/jha/quote

This analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and consult with a financial professional before making any investment decisions.