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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?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
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.
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
The fund is managed by Janus Henderson, and has been able to amass over $1.05 billion, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, JSMD seeks to match the performance of the Janus Small/Mid Cap Growth Alpha Index.
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.
Annual operating expenses for this ETF are 0.30%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.36%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
JSMD's heaviest allocation is in the Healthcare sector, which is about 26.6% of the portfolio. Its Information Technology and Industrials round out the top three.
When you look at individual holdings, Commvault Systems Inc. (CVLT) accounts for about 2% of the fund's total assets, followed by Exelixis Inc. (EXEL) and Ryman Hospitality Properties Inc. (RHP).
JSMD's top 10 holdings account for about 16.91% of its total assets under management.
Performance and Risk
The ETF has added roughly 11.74% so far this year and it's up approximately 7.92% in the last one year (as of 10/30/2026). In the past 52-week period, it has traded between $75.60 and $101.24
JSMD has a beta of 1.16 and standard deviation of 20.92% for the trailing three-year period. With about 123 holdings, it effectively diversifies company-specific risk .
Alternatives
Janus Henderson Small/Mid Cap Growth Alpha ETF is an excellent option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Russell 2000 Growth ETF (IWO) tracks Russell 2000 Growth Index and the Vanguard Morningstar Small-Cap Growth ETF (VBK) tracks CRSP U.S. Small Cap Growth Index. iShares Russell 2000 Growth ETF has $14.16 billion in assets, Vanguard Morningstar Small-Cap Growth ETF has $22.85 billion. IWO has an expense ratio of 0.24% and VBK changes 0.05%.
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?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
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.
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
The fund is managed by Janus Henderson, and has been able to amass over $1.05 billion, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, JSMD seeks to match the performance of the Janus Small/Mid Cap Growth Alpha Index.
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.
Annual operating expenses for this ETF are 0.30%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.36%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
JSMD's heaviest allocation is in the Healthcare sector, which is about 26.6% of the portfolio. Its Information Technology and Industrials round out the top three.
When you look at individual holdings, Commvault Systems Inc. (CVLT) accounts for about 2% of the fund's total assets, followed by Exelixis Inc. (EXEL) and Ryman Hospitality Properties Inc. (RHP).
JSMD's top 10 holdings account for about 16.91% of its total assets under management.
Performance and Risk
The ETF has added roughly 11.74% so far this year and it's up approximately 7.92% in the last one year (as of 10/30/2026). In the past 52-week period, it has traded between $75.60 and $101.24
JSMD has a beta of 1.16 and standard deviation of 20.92% for the trailing three-year period. With about 123 holdings, it effectively diversifies company-specific risk .
Alternatives
Janus Henderson Small/Mid Cap Growth Alpha ETF is an excellent option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
iShares Russell 2000 Growth ETF (IWO) tracks Russell 2000 Growth Index and the Vanguard Morningstar Small-Cap Growth ETF (VBK) tracks CRSP U.S. Small Cap Growth Index. iShares Russell 2000 Growth ETF has $14.16 billion in assets, Vanguard Morningstar Small-Cap Growth ETF has $22.85 billion. IWO has an expense ratio of 0.24% and VBK changes 0.05%.
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.