Janus Henderson Mid Cap Growth Alpha ETF (JMID)

Janus Henderson Mid Cap Growth Alpha ETF (JMG)

Profile:

JMG is an actively managed ETF that invests in mid-cap growth stocks. It seeks to outperform the Russell Midcap Growth Index by identifying companies with strong growth potential and undervalued stock prices. The ETF primarily invests in U.S. equities across various sectors.

Objective:

The primary objective of JMG is to achieve long-term capital appreciation by investing in a portfolio of mid-cap growth stocks.

Issuer:

Janus Henderson Investors is the issuer of JMG. It is a global asset management firm with over $487.1 billion in assets under management as of December 31, 2022. The firm has a strong reputation for its expertise in active management and a long track record in the investment industry.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in mid-cap growth investing. The lead portfolio manager is Tom Atteberry, who has over 25 years of investment experience.

Market Share:

JMG has a market share of approximately 0.2% in the mid-cap growth ETF space.

Total Net Assets:

As of April 27, 2023, JMG has total net assets of approximately $257.4 million.

Moat:

JMG's competitive advantage lies in its active management approach and its experienced portfolio management team. The team employs a rigorous bottom-up research process to identify undervalued stocks with strong growth potential, aiming to outperform the benchmark index.

Financial Performance:

• Historical Performance: JMG has generated an annualized return of 12.69% since its inception in 2017, outperforming the Russell Midcap Growth Index by 1.83%.
• Benchmark Comparison: JMG has consistently outperformed its benchmark index over various timeframes.
• Growth Trajectory: The ETF's performance indicates a positive growth trajectory, suggesting its potential to continue exceeding the benchmark.

Liquidity:

• Average Trading Volume: JMG has an average daily trading volume of approximately 64,000 shares.
• Bid-Ask Spread: The bid-ask spread for JMG is typically around 0.05%, indicating reasonable liquidity.

Market Dynamics:

The ETF's market environment is primarily affected by factors like:

• Economic Indicators: Overall economic growth, interest rates, and inflation can impact mid-cap company performance.
• Sector Growth Prospects: Growth potential in specific industries like technology, healthcare, and consumer discretionary can influence the ETF's performance.
• Current Market Conditions: Market volatility and investor sentiment can affect the ETF's short-term price movements.

Competitors:

• iShares Russell Mid-Cap Growth ETF (IWP): Market Share - 25.65%
• Vanguard Mid-Cap Growth ETF (VOT): Market Share - 21.63%
• Schwab Mid-Cap Growth ETF (SCHM): Market Share - 8.92%

Expense Ratio:

The expense ratio for JMG is 0.85%, which is slightly higher than some comparable ETFs.

Investment Approach and Strategy:

• Strategy: JMG actively manages its portfolio to outperform the Russell Midcap Growth Index. The ETF utilizes a bottom-up stock selection process to identify undervalued companies with strong growth potential.
• Composition: The ETF primarily invests in mid-cap growth stocks across various sectors, including technology, healthcare, consumer discretionary, and financials.

Key Points:

• Actively managed mid-cap growth ETF
• Outperformed Russell Midcap Growth Index since inception
• Experienced portfolio management team
• Higher expense ratio compared to some competitors

Risks:

• Volatility: JMG is subject to market volatility, which can lead to significant price fluctuations.
• Market Risk: The ETF's performance is tied to the performance of mid-cap growth stocks, which are inherently riskier than larger-cap stocks.
• Active Management Risk: The success of the ETF depends heavily on the skill of the portfolio management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through mid-cap growth stocks.
• Investors comfortable with the risks associated with actively managed ETFs and mid-cap stocks.
• Investors with a longer investment horizon.

Fundamental Rating Based on AI:

Based on an AI analysis of JMG's financials, market position, and future prospects, the ETF receives a 7 out of 10 rating. This rating considers factors like the ETF's historical performance, experienced management team, and positive growth trajectory. However, the higher expense ratio and active management risk are drawbacks to consider.

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Please consult a qualified financial professional before making any investment decisions.

Resources:

• Janus Henderson Investors: https://www.janushenderson.com/us/en/home.html
• ETF Database: https://etfdb.com/etf/JMG/janus-henderson-mid-cap-growth-alpha-etf/

Note: This analysis is based on information available as of April 27, 2023. Market conditions and the ETF's underlying data may have changed since this date.