Yahoo Finance Should Janus Henderson Small Cap Growth Alpha ETF (JSML) Be on Your Investing Radar?
Launched on 02/23/2016, the Janus Henderson Small Cap Growth Alpha ETF (JSML) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Growth segment of the US equity market.
The fund is sponsored by Janus Henderson. It has amassed assets over $210.29 million, making it one of the average sized ETFs attempting to match the Small Cap Growth segment of the US equity market.
Why Small Cap Growth
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.30%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.53%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 31.20% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Core & Main Inc. Class A (CNM) accounts for about 3.53% of total assets, followed by Doximity Inc. Class A (DOCS) and Amkor Technology Inc. (AMKR).
The top 10 holdings account for about 25.45% of total assets under management.
Performance and Risk
JSML seeks to match the performance of the Janus Small Cap Growth Alpha Index before fees and expenses. 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.
The ETF has lost about -1.59% so far this year and it's up approximately 5.11% in the last one year (as of 06/17/2024). In the past 52-week period, it has traded between $47.39 and $60.48.
The ETF has a beta of 1.27 and standard deviation of 25.12% for the trailing three-year period. With about 203 holdings, it effectively diversifies company-specific risk.
Alternatives
Janus Henderson Small Cap Growth Alpha ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JSML is a good option for those seeking exposure to the Style Box - Small Cap Growth area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 Growth ETF (IWO) and the Vanguard Small-Cap Growth ETF (VBK) track a similar index. While iShares Russell 2000 Growth ETF has $10.82 billion in assets, Vanguard Small-Cap Growth ETF has $16.82 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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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Janus Henderson Small Cap Growth Alpha ETF (JSML): ETF Research Reports
Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report
iShares Russell 2000 Growth ETF (IWO): ETF Research Reports
Vanguard Small-Cap Growth ETF (VBK): ETF Research Reports
Doximity, Inc. (DOCS) : Free Stock Analysis Report
Core & Main, Inc. (CNM) : Free Stock Analysis Report
