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Is Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) 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/Mid Cap Growth Alpha ETF (JSMD - Free Report) is a smart beta exchange traded fund launched on 02/23/2016.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $256.41 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Growth. JSMD is managed by Janus Henderson. This particular fund, before fees and expenses, 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.30%.
JSMD's 12-month trailing dividend yield is 0.49%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For JSMD, it has heaviest allocation in the Industrials sector --about 25.30% of the portfolio --while Information Technology and Healthcare round out the top three.
When you look at individual holdings, Medpace Holdings Inc. (MEDP - Free Report) accounts for about 3.13% of the fund's total assets, followed by Jabil Inc. (JBL - Free Report) and Dell Technologies Inc. Class C (DELL - Free Report) .
The top 10 holdings account for about 25.06% of total assets under management.
Performance and Risk
The ETF return is roughly 9.62% so far this year and is up about 12.16% in the last one year (as of 11/07/2023). In the past 52-week period, it has traded between $50.53 and $65.14.
The ETF has a beta of 1.17 and standard deviation of 23.21% for the trailing three-year period. With about 247 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 $9.11 billion in assets, Vanguard Small-Cap Growth ETF has $12.92 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?
Designed to provide broad exposure to the Style Box - Small Cap Growth category of the market, the Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD - Free Report) is a smart beta exchange traded fund launched on 02/23/2016.
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.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $256.41 million, this makes it one of the average sized ETFs in the Style Box - Small Cap Growth. JSMD is managed by Janus Henderson. This particular fund, before fees and expenses, 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.30%.
JSMD's 12-month trailing dividend yield is 0.49%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
For JSMD, it has heaviest allocation in the Industrials sector --about 25.30% of the portfolio --while Information Technology and Healthcare round out the top three.
When you look at individual holdings, Medpace Holdings Inc. (MEDP - Free Report) accounts for about 3.13% of the fund's total assets, followed by Jabil Inc. (JBL - Free Report) and Dell Technologies Inc. Class C (DELL - Free Report) .
The top 10 holdings account for about 25.06% of total assets under management.
Performance and Risk
The ETF return is roughly 9.62% so far this year and is up about 12.16% in the last one year (as of 11/07/2023). In the past 52-week period, it has traded between $50.53 and $65.14.
The ETF has a beta of 1.17 and standard deviation of 23.21% for the trailing three-year period. With about 247 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 $9.11 billion in assets, Vanguard Small-Cap Growth ETF has $12.92 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.