Earlier today, Janus Henderson rolled out the Janus Henderson Income ETF.
The fund seeks to provide current income, along with long-term capital appreciation prospects. It has a net expense ratio of 0.52%, following a 0.03% fee waiver.
“We believe the income solution space will be one of the fastest growing active ETF opportunities over the next five years, noted John Kerschner, head of U.S. Securitized Products and portfolio manager at Janus Henderson. “The launch of JIII demonstrates the expansion of our robust active fixed income ETF product offerings designed to meet client needs.”
Broad Fixed Income Exposure
The fund’s strategy focuses on investing in a mixed portfolio of debt securities. These debt securities can include U.S. and non-U.S. bonds of a wide variety of maturities. This includes corporate bonds, high yield bonds, asset-backed securities, CLOs, emerging market debt, and mortgage-backed securities.
“Our goal is to create a portfolio across all fixed income sectors, aiming to build a portfolio of best ideas across fixed income sectors, striving for higher yields than those of standard core-plus portfolios and greater diversification than single-sector, high-yield strategies,” added John Lloyd, lead, Multi-Sector Credit Strategies and portfolio manager at Janus Henderson.
Generally speaking, JIII chooses its fixed income securities based on those that offer high potential income. This choice is done following a research-driven investment process, mixing top-down and bottom-up factors. By doing so, the fund aims to better manage risk exposure and benefit from strong fundamental and data-driven analysis.
JIII expects to hold fixed income assets with a variety of different maturities. Per the fund prospectus, Janus Henderson anticipates the fund will have an average portfolio duration between zero to eight years.
Up to half of the ETF’s total assets may be invested in the commercial loans sector. However, it projects that commercial loans sector exposure will normally constitute around 15% of the fund’s overall assets.
Derivatives may also be employed by JIII, for a wide variety of reasons. These reasons include hedging, risk mitigation, duration management, or to enhance returns.
JIII is now the 13th Janus Henderson ETF listed in the United States. In total, the funds represent over $23 billion in assets under management.
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