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Is Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD - Free Report) debuted on 02/23/2016, and offers broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Janus Henderson, JSMD has amassed assets over $342.69 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. This particular fund 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.30% for JSMD, making it on par with most peer products in the space.
JSMD's 12-month trailing dividend yield is 0.43%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 27.20% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Healthcare 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) .
Its top 10 holdings account for approximately 27.18% of JSMD's total assets under management.
Performance and Risk
So far this year, JSMD has added roughly 4.06%, and was up about 21.63% in the last one year (as of 03/11/2024). During this past 52-week period, the fund has traded between $53.24 and $69.22.
The fund has a beta of 1.15 and standard deviation of 23.22% 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 $11.56 billion in assets, Vanguard Small-Cap Growth ETF has $17.08 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?
A smart beta exchange traded fund, the Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD - Free Report) debuted on 02/23/2016, and offers broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
Managed by Janus Henderson, JSMD has amassed assets over $342.69 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. This particular fund 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.30% for JSMD, making it on par with most peer products in the space.
JSMD's 12-month trailing dividend yield is 0.43%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 27.20% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Healthcare 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) .
Its top 10 holdings account for approximately 27.18% of JSMD's total assets under management.
Performance and Risk
So far this year, JSMD has added roughly 4.06%, and was up about 21.63% in the last one year (as of 03/11/2024). During this past 52-week period, the fund has traded between $53.24 and $69.22.
The fund has a beta of 1.15 and standard deviation of 23.22% 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 $11.56 billion in assets, Vanguard Small-Cap Growth ETF has $17.08 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.