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Is Janus Henderson Small Cap Growth Alpha ETF (JSML) a Strong ETF Right Now?
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Designed to provide broad exposure to the Style Box - Small Cap Growth category of the market, the Janus Henderson Small Cap Growth Alpha ETF (JSML - Free Report) is a smart beta exchange traded fund launched on 02/23/2016.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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
Because the fund has amassed over $364.91 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Growth. JSML is managed by Janus Henderson. JSML, 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are 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 0.31%.
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 29.4% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Information Technology and Industrials round out the top three.
Taking into account individual holdings, Trinet Group Inc. (TNET) accounts for about 2.2% of the fund's total assets, followed by Cactus Inc. Class A (WHD) and Ryman Hospitality Properties Inc. (RHP).
Its top 10 holdings account for approximately 17.85% of JSML's total assets under management.
Performance and Risk
Year-to-date, the Janus Henderson Small Cap Growth Alpha ETF has added roughly 16.64% so far, and was up about 17.75% over the last 12 months (as of 11/09/2026). JSML has traded between $67.22 $93.18 in this past 52-week period.
The ETF has a beta of 1.30 and standard deviation of 21.89% for the trailing three-year period. With about 121 holdings, it effectively diversifies company-specific risk .
Alternatives
Janus Henderson Small 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 $13.6 billion in assets, Vanguard Morningstar Small-Cap Growth ETF has $21.83 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 Cap Growth Alpha ETF (JSML) a Strong ETF Right Now?
Designed to provide broad exposure to the Style Box - Small Cap Growth category of the market, the Janus Henderson Small Cap Growth Alpha ETF (JSML - Free Report) is a smart beta exchange traded fund launched on 02/23/2016.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
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
Because the fund has amassed over $364.91 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Growth. JSML is managed by Janus Henderson. JSML, 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are 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 0.31%.
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 29.4% of the portfolio, the fund has heaviest allocation to the Healthcare sector; Information Technology and Industrials round out the top three.
Taking into account individual holdings, Trinet Group Inc. (TNET) accounts for about 2.2% of the fund's total assets, followed by Cactus Inc. Class A (WHD) and Ryman Hospitality Properties Inc. (RHP).
Its top 10 holdings account for approximately 17.85% of JSML's total assets under management.
Performance and Risk
Year-to-date, the Janus Henderson Small Cap Growth Alpha ETF has added roughly 16.64% so far, and was up about 17.75% over the last 12 months (as of 11/09/2026). JSML has traded between $67.22 $93.18 in this past 52-week period.
The ETF has a beta of 1.30 and standard deviation of 21.89% for the trailing three-year period. With about 121 holdings, it effectively diversifies company-specific risk .
Alternatives
Janus Henderson Small 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 $13.6 billion in assets, Vanguard Morningstar Small-Cap Growth ETF has $21.83 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.