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Is Janus Henderson Small Cap Growth Alpha ETF (JSML) a Strong ETF Right Now?
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The Janus Henderson Small Cap Growth Alpha ETF (JSML - Free Report) was launched on 02/23/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Janus Henderson. It has amassed assets over $206.26 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the Janus Small Cap Growth Alpha Index.
The Janus Henderson Small Cap Growth Alpha Index selects small-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.
Operating expenses on an annual basis are 0.30% for JSML, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.53%.
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.
This ETF has heaviest allocation in the Industrials sector - about 33.50% of the portfolio. Healthcare and Information Technology round out the top three.
Taking into account individual holdings, Core & Main Inc. Class A (CNM - Free Report) accounts for about 3.53% of the fund's total assets, followed by Doximity Inc. Class A (DOCS - Free Report) and Amkor Technology Inc. (AMKR - Free Report) .
Its top 10 holdings account for approximately 25.45% of JSML's total assets under management.
Performance and Risk
The ETF has lost about -2.11% and was up about 18.14% so far this year and in the past one year (as of 04/15/2024), respectively. JSML has traded between $47.02 and $60.48 during this last 52-week period.
The ETF has a beta of 1.26 and standard deviation of 25.19% for the trailing three-year period. With about 203 holdings, it effectively diversifies company-specific risk.
Alternatives
Janus Henderson Small 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 $10.95 billion in assets, Vanguard Small-Cap Growth ETF has $16.71 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 Cap Growth Alpha ETF (JSML) a Strong ETF Right Now?
The Janus Henderson Small Cap Growth Alpha ETF (JSML - Free Report) was launched on 02/23/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Janus Henderson. It has amassed assets over $206.26 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the Janus Small Cap Growth Alpha Index.
The Janus Henderson Small Cap Growth Alpha Index selects small-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.
Operating expenses on an annual basis are 0.30% for JSML, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.53%.
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.
This ETF has heaviest allocation in the Industrials sector - about 33.50% of the portfolio. Healthcare and Information Technology round out the top three.
Taking into account individual holdings, Core & Main Inc. Class A (CNM - Free Report) accounts for about 3.53% of the fund's total assets, followed by Doximity Inc. Class A (DOCS - Free Report) and Amkor Technology Inc. (AMKR - Free Report) .
Its top 10 holdings account for approximately 25.45% of JSML's total assets under management.
Performance and Risk
The ETF has lost about -2.11% and was up about 18.14% so far this year and in the past one year (as of 04/15/2024), respectively. JSML has traded between $47.02 and $60.48 during this last 52-week period.
The ETF has a beta of 1.26 and standard deviation of 25.19% for the trailing three-year period. With about 203 holdings, it effectively diversifies company-specific risk.
Alternatives
Janus Henderson Small 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 $10.95 billion in assets, Vanguard Small-Cap Growth ETF has $16.71 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.