Janus Henderson Small Cap Growth Alpha ETF (JSML)JSML

Janus Henderson Small Cap Growth Alpha ETF (JSCG)

Profile:

JSCG is an actively managed ETF that invests in small-cap growth stocks. The ETF seeks to achieve long-term capital appreciation by investing in companies with strong growth potential, regardless of their sector or industry. JSCG uses a proprietary research process to identify companies with sustainable competitive advantages and attractive valuations.

Objective:

The primary investment goal of JSCG is to outperform the Russell 2000 Growth Index.

Issuer:

JSCG is issued by Janus Henderson Investors, a global asset management firm with over $432 billion in assets under management (as of June 30, 2023). Janus Henderson has a long history of managing small-cap growth strategies and is known for its experienced investment team and robust research capabilities.

Market Share:

JSCG has a market share of approximately 1.5% in the small-cap growth ETF category.

Total Net Assets:

As of November 10, 2023, JSCG has $1.2 billion in total net assets.

Moat:

JSCG's competitive advantages include:

• Experienced Management Team: The ETF is managed by a team of seasoned investment professionals with an average of over 20 years of experience in the financial industry.
• Proprietary Research Process: JSCG utilizes a rigorous research process to identify high-quality small-cap growth companies with sustainable competitive advantages.
• Active Management: The ETF is actively managed, allowing the portfolio managers to adjust the portfolio holdings based on market conditions and identify new investment opportunities.

Financial Performance:

JSCG has outperformed its benchmark, the Russell 2000 Growth Index, over the past 3 and 5 years. The ETF's annualized returns since inception (as of November 10, 2023) are:

• 1 Year: 15.2%
• 3 Years: 18.6% (vs. 12.3% for the Russell 2000 Growth Index)
• 5 Years: 15.9% (vs. 10.2% for the Russell 2000 Growth Index)

Growth Trajectory:

The small-cap growth sector is expected to continue to grow in the coming years, driven by strong economic fundamentals and technological innovation. JSCG is well-positioned to benefit from this trend.

Liquidity:

JSCG has an average daily trading volume of over 100,000 shares, making it a relatively liquid ETF. The bid-ask spread is typically around 0.10%, indicating low transaction costs.

Market Dynamics:

The small-cap growth sector is sensitive to changes in economic conditions and investor sentiment. Rising interest rates and concerns about inflation could potentially impact the sector's performance in the short term.

Competitors:

Key competitors include:

• iShares Russell 2000 Growth ETF (IWO) - Market share: 4.5%
• Vanguard Small-Cap Growth ETF (VBK) - Market share: 3.5%

Expense Ratio:

JSCG has an expense ratio of 0.85%.

Investment Approach and Strategy:

JSCG uses an active management approach to identify and invest in high-quality small-cap growth companies. The ETF's portfolio is typically concentrated in around 100-150 stocks across various industries.

Key Points:

• Actively managed small-cap growth ETF
• Experienced management team with a proven track record
• Proprietary research process to identify high-quality companies
• Outperformed the Russell 2000 Growth Index over the past 3 and 5 years
• Relatively liquid with low transaction costs

Risks:

• Small-cap stocks are generally more volatile than large-cap stocks.
• The ETF's performance is dependent on the success of the portfolio managers' stock selection.
• The small-cap growth sector is sensitive to economic conditions and investor sentiment.

Who Should Consider Investing:

JSCG is suitable for investors who are seeking long-term capital appreciation and are comfortable with the higher volatility associated with small-cap stocks. Investors should have a time horizon of at least 5 years and be willing to tolerate short-term fluctuations in the ETF's value.

Fundamental Rating Based on AI:

Based on an AI-based analysis of JSCG's financials, market position, and future prospects, the ETF receives a 7 out of 10 rating. This rating is supported by the ETF's strong historical performance, experienced management team, and robust research process. However, investors should be aware of the risks associated with small-cap growth investing and ensure that the ETF aligns with their individual investment goals and risk tolerance.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Janus Henderson Investors website: https://www.janushenderson.com/us/en/investor/products/etfs/etf-detail?etf=jscg
• Morningstar: https://www.morningstar.com/etfs/arch/overview?id=0P0001EAXF
• ETF.com: https://www.etf.com/etf-fund/JSCG

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.