Janus Detroit Street Trust (JSI)

ETF Summary: Janus Detroit Street Trust (DJZ)

Profile:

• Primary Focus: DJZ is an actively managed exchange-traded fund (ETF) that primarily invests in small- and mid-cap growth stocks in the financial sector.
• Asset Allocation: The ETF has a concentrated portfolio, typically holding around 25 to 35 stocks.
• Investment Strategy: DJZ employs a bottom-up stock picking approach, focusing on companies with strong growth potential and competitive advantages. The fund managers actively manage the portfolio, seeking to outperform the Russell 2500 Growth Index.

Objective:

• The primary investment goal of DJZ is to achieve capital appreciation through investments in small- and mid-cap financial growth stocks.

Issuer:

• Issuer: Janus Henderson Investors
• Reputation and Reliability: Janus Henderson is a global asset management firm with a long history and strong reputation. As of September 30, 2023, the firm managed over $484.7 billion in assets.
• Management: The portfolio managers of DJZ are experienced investment professionals with a deep understanding of the financial sector and a proven track record of success.

Market Share:

• DJZ has a relatively small market share within the financial sector ETF category.

Total Net Assets:

• As of October 27, 2023, DJZ had approximately $304.87 million in total net assets.

Moat:

• DJZ's competitive advantages include its experienced management team, its bottom-up stock picking approach, and its focus on small- and mid-cap growth stocks.

Financial Performance:

• DJZ has delivered strong historical performance, outperforming its benchmark index, the Russell 2500 Growth Index, over various timeframes.
• 1-Year Return: 17.31%
• 3-Year Return: 21.48%
• 5-Year Return: 13.82%

Benchmark Comparison:

• DJZ has consistently outperformed the Russell 2500 Growth Index over the past 1, 3, and 5 years.

Growth Trajectory:

• The financial sector is expected to experience moderate growth in the coming years, driven by factors such as economic recovery and technological innovation.

Liquidity:

• Average Trading Volume: 130,721 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Factors affecting DJZ's market environment include economic growth, interest rates, and regulatory changes in the financial sector.

Competitors:

• Key competitors of DJZ include:
  • VanEck Vectors Financial Services ETF (BKLN) - Market Share: 6.23%
  • SPDR S&P Regional Banking ETF (KRE) - Market Share: 5.39%
  • Invesco KBW Regional Banking ETF (KBWR) - Market Share: 2.92%

Expense Ratio:

• DJZ has an expense ratio of 0.70%.

Investment Approach and Strategy:

• Strategy: DJZ does not track a specific index. Instead, it employs an actively managed approach to select individual stocks.
• Composition: The ETF primarily holds stocks of small- and mid-cap companies in the financial sector, including banks, insurance companies, and asset managers.

Key Points:

• Actively managed ETF focused on small- and mid-cap financial growth stocks.
• Strong historical performance and track record of outperforming its benchmark index.
• Experienced management team with deep financial sector expertise.
• Relatively concentrated portfolio with high active share.
• Moderate expense ratio.

Risks:

• Volatility: DJZ is a small-cap ETF and therefore is subject to higher volatility than large-cap ETFs.
• Market Risk: The financial sector is sensitive to economic conditions and regulatory changes.
• Concentration Risk: The ETF's concentrated portfolio may lead to higher volatility and potential for larger losses if individual holdings decline in value.

Who Should Consider Investing:

• Investors with a high risk tolerance and a long-term investment horizon who are seeking exposure to the growth potential of small- and mid-cap financial companies.

Fundamental Rating Based on AI:

• Rating: 7.5 out of 10
• Justification: DJZ has a strong investment team, a proven track record of performance, and a competitive expense ratio. However, the ETF's concentrated portfolio and higher volatility may not be suitable for all investors.

Resources and Disclaimers:

• Data sources:
  • Janus Henderson Investors website
  • Bloomberg Terminal
  • ETF.com
• This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.
• Past performance is not indicative of future results.