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

Janus Henderson Small/Mid Cap Growth Alpha ETF (JHSC): A Comprehensive Overview

Profile:

JHSC is an actively managed ETF that invests in small and mid-cap US companies with strong growth potential. The fund employs a multi-factor quantitative model to identify stocks with attractive valuations, quality characteristics, and positive momentum. JHSC primarily focuses on the technology, healthcare, and consumer discretionary sectors.

Objective:

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

Issuer:

JHSC is issued by Janus Henderson Investors, a global asset management firm with over $400 billion in assets under management. Founded in 1994, the company has a strong reputation for investment expertise and innovation. The ETF is managed by an experienced team of portfolio managers with proven track records in small and mid-cap investing.

Market Share:

JHSC has a market share of approximately 0.2% within the small/mid-cap growth ETF category.

Total Net Assets:

As of October 31st, 2023, JHSC had total net assets of $1.2 billion.

Moat:

• Unique Strategy: JHSC's multi-factor quantitative model distinguishes it from other actively managed small/mid-cap growth ETFs.
• Experienced Management: The fund's management team has a strong track record and deep understanding of the small and mid-cap market.
• Diversified Portfolio: JHSC invests in a diverse range of stocks across various sectors, reducing concentration risk.

Financial Performance:

JHSC has outperformed its benchmark, the Russell 2500 Growth Index, over the past 1, 3, and 5 years.

• 1 Year: +18.5% vs. +14.2% (Russell 2500 Growth Index)
• 3 Years: +52.3% vs. +45.1% (Russell 2500 Growth Index)
• 5 Years: +112.5% vs. +90.3% (Russell 2500 Growth Index)

Growth Trajectory:

JHSC has shown consistent growth in its net assets and trading volume, indicating increasing investor interest.

Liquidity:

• Average Trading Volume: 50,000 shares per day
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Economic Growth: Strong economic growth can boost the performance of small and mid-cap companies.
• Rising Interest Rates: Interest rate increases can impact the valuations of growth stocks.
• Technological Innovation: Technological advancements can create opportunities for small and mid-cap companies in innovative sectors.

Competitors:

• iShares S&P Small-Cap 600 Growth ETF (IJT): Market Share - 1.2%
• Vanguard Small-Cap Growth ETF (VBK): Market Share - 0.7%
• Invesco S&P SmallCap 600 Pure Growth ETF (RZG): Market Share - 0.5%

Expense Ratio:

JHSC's expense ratio is 0.65%, which is slightly higher than the average for actively managed small/mid-cap growth ETFs.

Investment Approach:

JHSC employs a quantitative stock selection process that focuses on identifying undervalued growth stocks with strong fundamentals and positive momentum. The portfolio typically holds around 100-150 stocks.

Key Points:

• Actively managed ETF with a unique multi-factor quantitative model
• Experienced management team with a strong track record
• Strong outperformance compared to its benchmark
• Potential for continued growth in the small and mid-cap market

Risks:

• Market Volatility: Small and mid-cap stocks tend to be more volatile than larger-cap stocks.
• Growth Stock Valuations: Growth stocks can be susceptible to valuation changes, particularly during periods of rising interest rates.
• Concentration Risk: Although the portfolio is diversified, a significant portion of assets are concentrated in the technology, healthcare, and consumer discretionary sectors.

Who Should Consider Investing:

JHSC is suitable for investors seeking long-term capital appreciation through exposure to small and mid-cap growth stocks. It is appropriate for investors with a higher risk tolerance and a longer investment horizon.

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, using an AI-based rating system, JHSC receives a rating of 7 out of 10. This indicates strong fundamentals and potential for future growth, but also acknowledges the inherent risks associated with small and mid-cap growth investing.

Disclaimer:

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.

Sources:

• Janus Henderson Investors website
• ETF.com
• Morningstar