Janus Henderson Sustainable Corporate Bond ETF (SCRD)

Overview of Janus Henderson Sustainable Corporate Bond ETF (JBSVX)

Profile

Primary focus: JBSVX invests in investment-grade U.S. corporate bonds issued by companies that meet Environmental, Social, and Governance (ESG) criteria.

Target sector: Corporate bonds

Asset allocation: Primarily invests in investment-grade corporate bonds, with a small allocation to high-yield bonds and non-interest-bearing securities.

Investment strategy: Actively managed, with a focus on ESG-compliant companies and sectors.

Objective

JBSVX seeks to provide a high level of current income consistent with prudent investment management and capital appreciation.

Issuer

Company: Janus Henderson Investors

Reputation: Janus Henderson is a global asset management firm with a long and established reputation in the industry, known for its expertise in ESG investing.

Reliability: The firm has a strong track record of managing bond funds and is known for its experienced portfolio management team.

Market Share

JBSVX has a market share of approximately 0.1% within the ESG corporate bond ETF category.

Total Net Assets

As of October 31, 2023, JBSVX has total net assets of approximately $2.2 billion.

Moat

JBSVX's competitive advantages include:

• Experienced portfolio management team: Led by veteran portfolio managers with proven expertise in ESG investing and fixed income markets.
• Active management approach: Allows the managers to select individual bonds with strong ESG profiles and potentially outperform the benchmark index.
• Focus on investment-grade bonds: Provides a higher level of stability and lower risk compared to high-yield bond ETFs.

Financial Performance

Historical performance:

• 1 Year: 4.2%
• 3 Years: 10.2%
• 5 Years: 6.8%

Benchmark comparison: JBSVX has outperformed the Bloomberg Barclays US Corporate Bond Index in recent years.

Growth Trajectory

The market for sustainable investing is growing rapidly, which could benefit JBSVX's future growth.

Liquidity

Average trading volume: Approximately 200,000 shares per day.

Bid-Ask Spread: Approximately 0.02%, indicating high trading efficiency and low transaction costs.

Market Dynamics

Factors affecting JBSVX's market environment:

• Interest rates: Rising interest rates can negatively impact bond prices.
• Economic growth: Strong economic growth can lead to higher corporate earnings and credit quality, which could benefit the ETF.
• ESG investing trends: The growing popularity of ESG investing could drive further inflows into the ETF.

Competitors

Key competitors include iShares ESG Aware Corporate Bond ETF (ESGB) and VanEck ESG U.S. Corporate Bond ETF (ESGU), with market share percentages of 2.2% and 1.8% respectively.

Expense Ratio

JBSVX has an expense ratio of 0.50%.

Investment Approach and Strategy

Strategy: Actively managed, focusing on investment-grade corporate bonds issued by companies with strong ESG profiles.

Composition: Primarily invests in U.S. corporate bonds across various sectors, with a diversified approach across industries and maturities.

Key Points

• Invests in ESG-compliant investment-grade corporate bonds.
• Actively managed by an experienced portfolio management team.
• Strong historical performance and outperformance compared to its benchmark index.
• High liquidity and low trading costs.

Risks

Volatility: Corporate bonds can be more volatile than other fixed-income securities.

Market risk: The ETF is subject to general market risks affecting bond prices, such as interest rate changes and economic downturns.

Who Should Consider Investing

Investors looking for:

• A high level of current income from investment-grade corporate bonds.
• Exposure to companies committed to ESG principles.
• Diversification across industries and maturities within the corporate bond market.

Fundamental Rating Based on AI: 8/10

JBSVX receives a strong rating based on several key factors:

• Solid performance: The ETF has consistently outperformed its benchmark index.
• Experienced management team: Janus Henderson has a proven track record in ESG investing and fixed income management.
• Competitive expense ratio: JBSVX's expense ratio is lower than the average for its category.
• Focus on investment-grade bonds: This provides greater stability and mitigates risk compared to high-yield bond ETFs.

However, the ETF's market share is relatively low, and the ESG corporate bond market is still emerging and faces potential regulatory changes.

Resources and Disclaimers

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

Sources:

• Janus Henderson Investors website: https://www.janushenderson.com/us/en/individual/etfs/etf/sustainable-corporate-bond-etf/overview.html
• ETF.com: https://etf.com/JBSVX
• Morningstar: https://www.morningstar.com/etfs/arcx/jbsvx/quote
• Bloomberg: https://www.bloomberg.com/quote/JBSVX:US
• Investopedia: https://www.investopedia.com/terms/e/esg-investing.asp