Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD)

Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) Overview

Profile:

• Focus: Small and mid-cap US companies with high growth potential
• Asset Allocation: Primarily invested in equities (stocks)
• Investment Strategy: Actively managed to identify and invest in undervalued companies with strong growth prospects

Objective:

• To generate long-term capital appreciation by investing in high-growth potential small and mid-cap companies

Issuer:

• Name: Janus Henderson Investors
• Reputation and Reliability: Janus Henderson is a renowned investment management firm with over 2000 employees and $425 billion in assets under management.
• Management: The ETF is managed by an experienced team of portfolio managers, including Nick Schommer, Head of US Fundamental Equities and Lead Portfolio Manager.

Market Share:

• JSMD has a relatively small market share in the small/mid-cap growth ETF space, with around 0.2% of the total assets.

Total Net Assets:

• Approximately $209 million.

Moat:

• Active Management: JSMD utilizes an active management approach, allowing portfolio managers to capitalize on inefficiencies and uncover undervalued growth opportunities, potentially exceeding benchmark performance.
• High-Conviction Investing: The portfolio concentrates on high-conviction holdings, potentially leading to greater alpha generation.
• Experienced Management: The ETF benefits from the expertise and experience of the Janus Henderson Investment Management team.

Financial Performance:

• 3-Year trailing total return: 32.4%.
• 5-Year trailing total return: 41.1%.
• Outperformed the Russell 2500 Growth Index over the past 3 and 5 years.

Growth Trajectory:

• The small/mid-cap growth segment is expected to continue experiencing growth due to the potential for higher returns compared to large-cap companies.

Liquidity:

• Average Daily Trading Volume: Approximately 50,000 shares.
• Bid-Ask Spread: Around 0.05%.

Market Dynamics:

• Economic Factors: The ETF’s performance is influenced by overall economic conditions, particularly interest rates and inflation.
• Sector Growth: The small/mid-cap growth sector is driven by innovation and technological advancements.
• Market Volatility: Market volatility can impact the ETF’s price fluctuations.

Competitors:

• iShares Russell 2500 Growth ETF (IWO) - Market share: 4.2%
• Vanguard Small-Cap Growth ETF (VBK) - Market share: 3.4%
• SPDR S&P 600 Small Cap Growth ETF (SLYG) - Market share: 3.3%

Expense Ratio:

• 0.89%

Investment Approach and Strategy:

• Strategy: Actively managed, aiming to outperform the Russell 2500 Growth Index.
• Composition: Primarily US equities (small and mid-cap companies with high growth potential).

Key Points:

• Actively managed fund seeking alpha generation.
• Invests in high-growth potential small and mid-cap companies.
• Outperformed its benchmark index in recent years.

Risks:

• Market Risk: Small and mid-cap companies are inherently riskier than large-cap companies.
• Growth Style Risk: Growth stocks are more sensitive to economic fluctuations and can experience higher volatility.
• Management Risk: The ETF’s performance is dependent on the portfolio manager’s skills and decisions.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with higher risk tolerance.
• Investors looking for exposure to small and mid-cap growth companies.
• Investors who believe in the active management approach.

Fundamental Rating Based on AI: 7.8/10

Strengths:

• Strong historical performance, outperforming the benchmark index
• Experienced and reputable management team
• Active management and high-conviction investing

Weaknesses:

• Relatively small market share
• Higher expenses compared to some competitors
• Higher risk due to focus on small and mid-cap companies

Overall: JSMD offers a compelling option for investors seeking active management in the small/mid-cap growth space. The ETF's strong performance, experienced management team, and high-conviction approach are key strengths. However, investors should consider the higher expenses and risks associated with the ETF.

Resources:

• Janus Henderson website: https://www.janushenderson.com/us/en/home.html
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/JSMD
• Yahoo Finance: https://finance.yahoo.com/quote/JSMD/
• Morningstar: https://www.morningstar.com/etfs/arcx/jsmd/portfolio

Disclaimer:

The information provided in this analysis is for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.