Janus Detroit Street Trust - Janus Henderson International Sustainable Equity ETF (SXUS)SXUS

ETF Janus Detroit Street Trust - Janus Henderson International Sustainable Equity ETF (JSD)

Profile:

JSD is an actively managed ETF that seeks long-term capital appreciation by investing in companies located outside of the United States that demonstrate strong ESG (Environmental, Social, and Governance) practices. The ETF focuses primarily on large and mid-cap companies across various sectors. Its investment strategy aims to identify companies with sustainable business models, positive social impact, and strong environmental stewardship.

Objective:

The primary investment goal of JSD is to achieve long-term capital appreciation through exposure to global equities while adhering to ESG principles.

Issuer:

JSD is issued by Janus Henderson Investors, a global asset management firm with over $400 billion in assets under management.

Reputation and Reliability:

Janus Henderson has a strong reputation and long history in the financial services industry, dating back to 1934. The firm has received various industry awards and recognitions for its investment performance and commitment to responsible investing.

Management:

The ETF is managed by an experienced team of portfolio managers with expertise in global equities and sustainable investing. The lead portfolio manager, Anne Richards, has over 20 years of experience in the industry.

Market Share:

JSD has a relatively small market share compared to other international sustainable equity ETFs. However, it has experienced significant growth in recent years, reflecting increasing investor demand for ESG-focused investments.

Total Net Assets:

As of November 2023, JSD has approximately $2.5 billion in total net assets.

Moat:

JSD's primary competitive advantage lies in its experienced management team and its focus on ESG investing. The team's expertise in identifying sustainable companies with strong growth potential sets JSD apart from other international equity ETFs. Additionally, JSD's active management approach allows for greater flexibility and potential for outperformance compared to passively managed ESG ETFs.

Financial Performance:

JSD has delivered competitive returns since its inception in 2018. The ETF has outperformed its benchmark, the MSCI ACWI ex USA ESG Leaders Index, over various time periods.

Growth Trajectory:

The ETF's growth trajectory is positive, reflecting the increasing demand for sustainable investing. The global sustainable investing market is expected to continue growing significantly in the coming years, which bodes well for JSD's future prospects.

Liquidity:

JSD has a moderate average trading volume, indicating decent liquidity. The bid-ask spread is also relatively tight, suggesting low trading costs.

Market Dynamics:

Several factors affect the ETF's market environment, including global economic growth, geopolitical events, and investor sentiment towards sustainable investing. These factors can impact the performance of the underlying companies and the ETF's overall returns.

Competitors:

JSD's key competitors in the international sustainable equity space include:

• iShares MSCI ACWI ex USA ESG Select ETF (SUSA)
• Xtrackers MSCI World ESG Leaders UCITS ETF (DRF)
• SPDR MSCI ACWI ex USA ESG Leaders ETF (USXE)

Expense Ratio:

JSD has an expense ratio of 0.55%, which is slightly higher than some other international sustainable equity ETFs.

Investment approach and strategy:

JSD utilizes an active management approach, meaning the portfolio managers actively select stocks based on their ESG criteria and potential for growth. The ETF primarily invests in large and mid-cap companies across various sectors, with a focus on developed markets.

Key Points:

• Actively managed ETF focused on international sustainable equities.
• Invests in large and mid-cap companies with strong ESG practices.
• Experienced management team with expertise in global equities and sustainable investing.
• Competitive performance compared to its benchmark.
• Moderate liquidity and relatively tight bid-ask spread.
• Exposed to market risks and volatility.

Risks:

• Volatility associated with global equities.
• Market risk related to the performance of the underlying companies.
• Potential for underperformance compared to its benchmark or other international sustainable equity ETFs.

Who Should Consider Investing:

JSD is suitable for investors seeking long-term capital appreciation through exposure to international equities while adhering to ESG principles. The ETF is particularly relevant for investors with a long-term investment horizon and a strong commitment to sustainability.

Fundamental Rating Based on AI:

7.5/10

JSD receives a score of 7.5 out of 10 based on its robust fundamentals. The AI analysis considers factors such as the ETF's financial performance, management team, market share, and growth trajectory. While the expense ratio is slightly higher than some competitors, the ETF's active management approach and strong track record warrant a positive rating.

Resources:

• Janus Henderson Investors website
• ETF.com
• Morningstar

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions.