Janus Henderson Asset-Backed Securities ETF

JABS

Capitalización de mercado USD 138 M

Janus Henderson Asset-Backed Securities ETF remains a conviction 'Buy' for its robust risk-adjusted yield and defensive structure. JABS is overweight high-grade ABS bonds, primarily single-A and AA, with a 2-year duration and minimal BBB exposure, ensuring low default risk. The ETF delivers a 4.8% SEC yield, outperforms T-bills, and maintains a low drawdown profile, with a maximum observed drawdown of -1%.

Janus Henderson has several income ETFs, most focusing on higher-quality, niche securities and investments. JABS is one such ETF, focusing on high-quality ABS. These securities have higher yields than more traditional bonds and fixed-income securities of comparable risk. Risk-adjusted returns are high, as are expected returns.

The Janus Henderson Asset-Backed Securities ETF targets income generation through short-duration, investment-grade ABS bonds, offering sector diversification and higher yield potential. JABS maintains a high-quality portfolio, overweight single-A-rated assets, with minimal sub-investment grade exposure, aiming to limit downside risk. The ETF provides a 5% 30-day SEC yield and a 0.33% expense ratio, positioning itself as a direct competitor to UYLD in the short-duration ABS space.

Janus Henderson's head of innovation Nick Cherney tells CNBC's Contessa Brewer the tokenization of ETFs is potentially the most transformative technology to hit financial services in decades and how the firm is getting ahead of the interest by launching products in the category. VanEck's product manager Nicholas Frasse joins the conversation.

Nick Cherney of Janus Henderson sits down with CNBC's Contessa Brewer on 'ETF Edge' to discuss the strategies investors can take to position their portfolios before the Fed decision this week and the interest in tokenization vs. taking the traditional ETF route.

Ample volatility and shifting rate expectations have sent investors on an avid search for stability and diversification. Many investors are now looking to the next frontier of fixed income ETFs — asset-backed securities — as private lenders fill a big financing void created by the exit of traditional banks.

On Wednesday, Janus Henderson expanded its ETF lineup with the launch of the Janus Henderson Asset-Backed Securities ETF (JABS). JABS is an actively managed fund that looks to generate a mix of income and capital preservation.