Janus Henderson Sustainable Corporate Bond ETF (SCRD)

Overview

The Janus Henderson Sustainable Corporate Bond ETF (ticker: CORP) seeks to provide current income while investing in a portfolio of U.S. dollar-denominated corporate bonds that adhere to sustainable and responsible investment principles. It prioritizes investment-grade corporate bonds with a focus on environmental, social, and governance (ESG) factors. The strategy aims to generate competitive risk-adjusted returns compared to the broad corporate bond market.

Reputation and Reliability

Janus Henderson is a well-established global asset manager with a long history and solid reputation in the investment industry. They have a broad range of expertise in fixed income and sustainable investing.

Management Expertise

The management team has extensive experience in credit analysis, portfolio management, and ESG integration. They are supported by a dedicated research team focused on sustainable investment.

Goal

To seek current income while investing in sustainable corporate bonds.

Investment Approach and Strategy

Strategy: The ETF invests in U.S. dollar-denominated corporate bonds, integrating ESG factors into the investment process. It employs a bottom-up fundamental credit analysis combined with a screening process that excludes companies with poor ESG profiles.

Composition The ETF holds a diversified portfolio of primarily investment-grade corporate bonds. A smaller allocation may be made to high-yield bonds that align with the fund's sustainability criteria.

Market Share: CORP's market share within the sustainable corporate bond ETF segment is moderate and growing as sustainable investing becomes more popular.

Total Net Assets (AUM): 158000000

Key Competitors

• ICredit ESG US Corporate Bond ETF (ICOR)
• Xtrackers USD High Yield Corporate Bond ETF (HYLB)
• Vanguard ESG U.S. Corporate Bond ETF (VSC)
• iShares ESG Aware USD Corporate Bond ETF (SUSC)

Competitive Landscape

The sustainable corporate bond ETF market is competitive, with several established players offering similar investment strategies. CORP competes on factors such as ESG integration, credit selection, and expense ratio. CORP's active management approach may provide an advantage in identifying undervalued bonds, while passive ETFs offer lower expense ratios. Vanguard and iShares have a first mover advantage.

Historical Performance: Historical performance data is variable depending on the time period and market conditions. Returns will fluctuate based on interest rate movements and credit spreads.

Benchmark Comparison: The ETF's performance is typically compared to broad market corporate bond indices and other ESG-focused fixed income benchmarks to assess its effectiveness.

Expense Ratio: 0.35

Average Trading Volume

The ETF's average trading volume is moderate, providing sufficient liquidity for most investors, but it can fluctuate.

Bid-Ask Spread

The bid-ask spread is typically narrow, indicating relatively low transaction costs, but it can widen during periods of market volatility.

Market Environment Factors

Economic growth, interest rate policy, credit spreads, and investor sentiment towards ESG investing all influence the performance of the ETF.

Growth Trajectory

The growth trajectory depends on the increasing adoption of sustainable investing and the ETF's ability to attract assets through strong performance and effective marketing. There have been no recent significant changes to strategy and holdings.

Competitive Edge

Janus Henderson's expertise in fixed income and sustainable investing gives CORP a competitive edge. The ETF's active management approach allows for flexible credit selection and ESG integration, potentially enhancing returns. The fund's focus on investment-grade corporate bonds provides a relatively stable risk profile. Janus Henderson's brand recognition can also attract investors seeking sustainable investment options. The ETF's relatively small size allows it to be nimbler than other ETFs in some areas.

Volatility

The ETF's volatility is generally moderate, reflecting the stability of investment-grade corporate bonds. However, volatility can increase during periods of economic uncertainty or market stress.

Market Risk

The ETF is subject to interest rate risk, credit risk, and liquidity risk. Rising interest rates can negatively impact bond prices, while credit risk refers to the possibility of bond issuers defaulting on their obligations. Liquidity risk arises from the potential difficulty in selling bonds during periods of market stress.

Ideal Investor Profile

The ideal investor is seeking current income with a focus on sustainable investing. These investors prioritize ESG factors and are comfortable with moderate levels of risk and volatility.

Market Risk

The ETF is suitable for long-term investors seeking income and aligning their investments with sustainable values. It may also be appropriate for investors looking to diversify their fixed income portfolio with an ESG focus.

The Janus Henderson Sustainable Corporate Bond ETF aims to provide income while investing in sustainable corporate bonds. It uses an active management approach, integrating ESG factors into the investment process. The ETF is subject to interest rate and credit risk, but it offers a diversified portfolio of investment-grade corporate bonds. It is suitable for long-term investors seeking sustainable income with moderate risk. The expense ratio is reasonable, and Janus Henderson has proven expertise in fixed income investing.

Data Sources:

• Janus Henderson Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data is based on estimates and may not be precise.