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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) made its debut on 02/23/2016, and is a smart beta exchange traded fund that provides 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of 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. JSML has been able to amass assets over $211.12 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, JSML 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
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 JSML, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.52%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector - about 31.10% 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) .
The top 10 holdings account for about 25.45% of total assets under management.
Performance and Risk
So far this year, JSML has lost about -1.27%, and it's up approximately 5.34% in the last one year (as of 06/18/2024). During this past 52-week period, the fund has traded between $47.39 and $60.48.
The fund has a beta of 1.27 and standard deviation of 25.15% 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 $10.90 billion in assets, Vanguard Small-Cap Growth ETF has $16.91 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) made its debut on 02/23/2016, and is a smart beta exchange traded fund that provides 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of 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. JSML has been able to amass assets over $211.12 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, JSML 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
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 JSML, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.52%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector - about 31.10% 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) .
The top 10 holdings account for about 25.45% of total assets under management.
Performance and Risk
So far this year, JSML has lost about -1.27%, and it's up approximately 5.34% in the last one year (as of 06/18/2024). During this past 52-week period, the fund has traded between $47.39 and $60.48.
The fund has a beta of 1.27 and standard deviation of 25.15% 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 $10.90 billion in assets, Vanguard Small-Cap Growth ETF has $16.91 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.