Janus Henderson Mortgage-Backed Securities ETF (JMBS)

Overview

Janus Henderson Mortgage-Backed Securities ETF (JMBS) is an actively managed ETF focused on investing in mortgage-backed securities (MBS), primarily those issued or guaranteed by U.S. government agencies. It seeks to provide current income and capital appreciation by investing in a diversified portfolio of MBS.

Reputation and Reliability

Janus Henderson is a well-established asset management firm with a global presence and a solid reputation for investment expertise and client service.

Management Expertise

The fund is managed by a team of experienced fixed-income professionals with expertise in mortgage-backed securities and active portfolio management.

Goal

The fund seeks current income and capital appreciation.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy to invest in a diversified portfolio of mortgage-backed securities.

Composition The ETF primarily holds agency mortgage-backed securities, including those issued by Ginnie Mae, Fannie Mae, and Freddie Mac.

Market Share: JMBS's market share fluctuates based on AUM and flows relative to its competitors.

Total Net Assets (AUM): 1400000000

Key Competitors

• iShares MBS ETF (MBB)
• Vanguard Mortgage-Backed Securities ETF (VMBS)
• SPDR Portfolio Mortgage Backed Securities ETF (SPMB)

Competitive Landscape

The mortgage-backed securities ETF market is dominated by a few large players like MBB and VMBS. JMBS differentiates itself through active management, which allows for tactical adjustments based on market conditions. A disadvantage is the higher expense ratio compared to passively managed competitors. JMBS aims to outperform through security selection and duration management.

Historical Performance: Historical performance data is not directly present but can be looked up for each ETF in public records.

Benchmark Comparison: The ETF's performance is typically compared to a benchmark like the Bloomberg Barclays US Mortgage Backed Securities Index.

Expense Ratio: 0.34

Average Trading Volume

JMBS exhibits moderate liquidity with an average trading volume that allows for relatively easy entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread for JMBS is generally tight, indicating efficient trading and lower transaction costs.

Market Environment Factors

Economic indicators such as interest rates, inflation, and housing market trends significantly affect the performance of mortgage-backed securities. The current interest rate environment and Federal Reserve policies are particularly relevant.

Growth Trajectory

The growth trajectory of JMBS depends on its ability to attract assets through strong performance and effective marketing. Active management provides the flexibility to adapt to changing market conditions.

Competitive Edge

JMBS's primary competitive advantage is its active management strategy, which allows the portfolio managers to dynamically adjust the portfolio based on market conditions and credit opportunities within the mortgage-backed securities market. This strategy enables them to potentially outperform passive benchmarks by strategically selecting securities and managing duration risk. Janus Henderson's experienced management team and established reputation in fixed-income investing further support its competitive positioning. However, active management also comes with increased risk.

Volatility

The volatility of JMBS is generally moderate, reflecting the relatively stable nature of agency mortgage-backed securities.

Market Risk

Market risk includes interest rate risk (sensitivity to changes in interest rates) and prepayment risk (risk that homeowners will refinance their mortgages when interest rates decline). Credit risk is low due to the focus on agency-backed securities.

Ideal Investor Profile

The ideal investor is one seeking current income and moderate capital appreciation, with a tolerance for interest rate risk. It is suitable for investors looking to diversify their fixed-income allocation with mortgage-backed securities.

Market Risk

JMBS may be suitable for both long-term investors seeking income and tactical investors looking to capitalize on market opportunities within the MBS market.

Janus Henderson Mortgage-Backed Securities ETF (JMBS) is an actively managed ETF investing in agency mortgage-backed securities, aiming for current income and capital appreciation. Its active strategy differentiates it from passive peers but results in a higher expense ratio. The ETF is suitable for income-seeking investors with a moderate risk tolerance. Performance is tied to interest rate movements and the housing market.

Data Sources:

• Janus Henderson official website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly. Consult with a financial advisor before making investment decisions.