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Is Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) a Strong ETF Right Now?
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Making its debut on 02/23/2016, smart beta exchange traded fund Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD - Free Report) provides investors broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
JSMD is managed by Janus Henderson, and this fund has amassed over $308.13 million, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. JSMD seeks to match the performance of the Janus Small/Mid Cap Growth Alpha Index before fees and expenses.
The Janus Henderson Small/Mid Cap Growth Alpha Index selects small- and medium-sized capitalization stocks that are poised for smart growth by evaluating each company performance in three critical areas: growth, profitability, and capital efficiency.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.30%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 26.50% of the portfolio, the fund has heaviest allocation to the Industrials sector; Healthcare and Information Technology round out the top three.
When you look at individual holdings, Dell Technologies Inc Class C (DELL - Free Report) accounts for about 3.25% of the fund's total assets, followed by Medpace Holdings Inc (MEDP - Free Report) and Westlake Corporation (WLK - Free Report) .
The top 10 holdings account for about 27.18% of total assets under management.
Performance and Risk
Year-to-date, the Janus Henderson Small/Mid Cap Growth Alpha ETF has lost about -2.90% so far, and was up about 19.04% over the last 12 months (as of 01/10/2024). JSMD has traded between $53.24 and $66.90 in this past 52-week period.
The ETF has a beta of 1.16 and standard deviation of 23.34% for the trailing three-year period. With about 244 holdings, it effectively diversifies company-specific risk.
Alternatives
Janus Henderson Small/Mid Cap Growth Alpha ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 2000 Growth ETF (IWO - Free Report) tracks Russell 2000 Growth Index and the Vanguard Small-Cap Growth ETF (VBK - Free Report) tracks CRSP U.S. Small Cap Growth Index. IShares Russell 2000 Growth ETF has $10.64 billion in assets, Vanguard Small-Cap Growth ETF has $15.15 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) a Strong ETF Right Now?
Making its debut on 02/23/2016, smart beta exchange traded fund Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD - Free Report) provides investors broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
JSMD is managed by Janus Henderson, and this fund has amassed over $308.13 million, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. JSMD seeks to match the performance of the Janus Small/Mid Cap Growth Alpha Index before fees and expenses.
The Janus Henderson Small/Mid Cap Growth Alpha Index selects small- and medium-sized capitalization stocks that are poised for smart growth by evaluating each company performance in three critical areas: growth, profitability, and capital efficiency.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.30%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.46%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 26.50% of the portfolio, the fund has heaviest allocation to the Industrials sector; Healthcare and Information Technology round out the top three.
When you look at individual holdings, Dell Technologies Inc Class C (DELL - Free Report) accounts for about 3.25% of the fund's total assets, followed by Medpace Holdings Inc (MEDP - Free Report) and Westlake Corporation (WLK - Free Report) .
The top 10 holdings account for about 27.18% of total assets under management.
Performance and Risk
Year-to-date, the Janus Henderson Small/Mid Cap Growth Alpha ETF has lost about -2.90% so far, and was up about 19.04% over the last 12 months (as of 01/10/2024). JSMD has traded between $53.24 and $66.90 in this past 52-week period.
The ETF has a beta of 1.16 and standard deviation of 23.34% for the trailing three-year period. With about 244 holdings, it effectively diversifies company-specific risk.
Alternatives
Janus Henderson Small/Mid Cap Growth Alpha ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 2000 Growth ETF (IWO - Free Report) tracks Russell 2000 Growth Index and the Vanguard Small-Cap Growth ETF (VBK - Free Report) tracks CRSP U.S. Small Cap Growth Index. IShares Russell 2000 Growth ETF has $10.64 billion in assets, Vanguard Small-Cap Growth ETF has $15.15 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Growth.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.