Janus Henderson Mortgage-Backed Securities ETF (JMBS)

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

Profile:

JHA is a passively managed exchange-traded fund (ETF) that tracks the MVIS US Mortgage-Backed Securities Index. This index comprises mortgage-backed securities (MBS) issued by government-sponsored enterprises (GSEs) such as Fannie Mae, Freddie Mac, and Ginnie Mae. JHA primarily invests in agency MBS with maturities ranging from 1 to 30 years.

Objective:

JHA aims to provide investors with a high level of current income through investment in agency MBS. It also seeks to preserve capital and provide liquidity.

Issuer:

Janus Henderson Investors is a global asset management firm with over $441 billion in assets under management (as of September 30, 2023). The firm has a strong reputation and a long history of managing fixed income investments.

Market Share:

JHA has a market share of approximately 1.5% in the mortgage-backed securities ETF category.

Total Net Assets:

JHA has approximately $838 million in total net assets.

Moat:

JHA's primary competitive advantages include its low expense ratio, experienced management team, and access to a wide range of agency MBS.

Financial Performance:

JHA has a strong track record of performance, outperforming its benchmark index in recent years. It has also generated a consistent level of income for investors.

Growth Trajectory:

The mortgage-backed securities market is expected to grow in the coming years, driven by factors such as rising interest rates and increasing demand for housing. This could benefit JHA's future performance.

Liquidity:

JHA has an average daily trading volume of over 100,000 shares, making it a relatively liquid ETF. The bid-ask spread is also tight, indicating low transaction costs.

Market Dynamics:

Factors affecting the market environment for JHA include interest rates, economic growth, and prepayment risk. Rising interest rates can benefit JHA by increasing the value of its assets, while economic growth can lead to increased demand for mortgage-backed securities. Prepayment risk, however, can reduce the income generated by JHA.

Competitors:

JHA's main competitors include iShares MBS ETF (MBB) and Vanguard Mortgage-Backed Securities ETF (VMBS).

Expense Ratio:

JHA's expense ratio is 0.15%.

Investment Approach and Strategy:

JHA employs a passive investment approach, tracking the MVIS US Mortgage-Backed Securities Index. The ETF invests in a diversified portfolio of agency MBS across various maturities.

Key Points:

• Invests in agency MBS for high income generation.
• Low expense ratio.
• Experienced management team.
• Strong track record of performance.
• Relatively liquid.

Risks:

• Interest rate risk.
• Prepayment risk.
• Credit risk.

Who Should Consider Investing:

JHA is suitable for investors seeking a high level of current income from a diversified portfolio of agency MBS. It is also appropriate for investors with a long-term investment horizon and a tolerance for moderate risk.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, JHA receives a 7 out of 10 rating. The AI system takes into account factors such as the ETF's track record, expense ratio, management team, and market environment. While JHA has a strong track record and a low expense ratio, its exposure to interest rate risk and prepayment risk are important considerations for potential investors.

Resources and Disclaimers:

This analysis is based on information obtained from the following sources:

• Janus Henderson Investors website
• ETF.com
• Morningstar

This information is provided for educational purposes only and should not be considered financial advice. Investing involves risk, and investors should carefully consider their individual circumstances and investment goals before making any investment decisions.