Janus Capital Group, Inc, begun trading 2 new ETFs, the Janus Small Cap Growth Alpha ETF (Nasdaq: JSML) and the Janus Small/Mid Cap Growth Alpha ETF (Nasdaq: JSMD) on Thursday, February 25, 2016. Here is a synopsis of the new ETFs:
1.
| Symbol: JSML | Exchange: NASDAQ |
| Name: Janus Small Cap Growth Alpha ETF | Net Expense Ratio: 0.50% |
FUND OBJECTIVE:
The Janus Small Cap Growth Alpha ETF seeks investment results that correspond generally, before fees and expenses, to the performance of its underlying index, the Janus Small Cap Growth Alpha Index.
REFERENCE INDEX:
The Janus Small Cap Growth Alpha Index is composed of common stocks of small-sized companies that are selected by the index provider, Janus Index & Calculation Services LLC,
from those companies included in the Solactive Small Cap Index, a universe of 2,000 small-sized capitalization stocks. The Underlying Index is designed to select small-sized capitalization stocks that are poised for “smart growth” by evaluating each company’s performance in 3 critical areas: growth, profitability, and capital efficiency. The Index Provider scores such stocks based on fundamental measures of their growth, profitability, and capital efficiency, and selects the top 10% of such eligible stocks scoring the highest using a proprietary quantitative methodology. To arrive at the top 10%, for each security in the stated universe, the quantitative methodology assigns a score in each of 10 different fundamental factors, relative to other eligible securities. The fundamental factors include measures that Janus Capital believes are tied to a stock’s outperformance relative to other small cap stocks, and indicate a company’s performance with respect to growth (such as the revenue growth rate over 2- 5- and 8- year periods), profitability (such as margin expansion, profit margin and earnings per share over time) and capital efficiency (such as returns on invested capital). The scores for each factor are then added together, with equal weighting, to arrive at an overall score. The stocks with the highest 10% of scores are then weighted within the Underlying Index according to their market capitalization. Finally, the stocks are sector-weighted to reflect the sector allocation weight of Janus Venture Fund, based on its most recent publicly available holdings. A stock may not represent more than 3% of the Underlying Index. The Underlying Index, Janus Small Cap Growth Alpha Index, seeks risk adjusted outperformance relative to a market capitalization weighted universe of small-sized capitalization growth stocks. Market capitalizations within the Underlying Index will vary, but as of January 29, 2016, they ranged from approximately $53 million to $5.4 billion. The Underlying Index is rebalanced on a quarterly basis based on the methodology described above.
Fund Top Constituents (02/26/2015):
| Arista Networks Inc | 3.25% |
| ABIOMED Inc | 2.80% |
| Syntel Inc | 2.65% |
| SYNNEX Corp | 2.58% |
| AMERCO | 2.45% |
| Heartland Payment Systems Inc | 2.39% |
| EPAM Systems Inc | 2.33% |
| Rollins Inc | 2.18% |
| Cantel Medical Corp | 2.16% |
| Ubiquiti Networks Inc | 1.93% |
Fund’s Sector Allocation (02/26/2015):
| Information Technology | 36.29% |
| Health Care | 21.56% |
| Industrials | 15.75% |
| Consumer Discretionary | 12.98% |
| Financials | 7.59% |
| Consumer Staples | 2.42% |
| Materials | 1.69% |
| Energy | 1.57% |
Useful Links:
JSML Home Page
Category: Commodities>
2.
FUND INFORMATION:
| Symbol: JSMD | Exchange: NASDAQ |
| Name: Janus Small/Mid Cap Growth Alpha ETF | Net Expense Ratio: 0.50% |
FUND OBJECTIVE:
The Janus Small/Mid Cap Growth Alpha ETF seeks investment results that correspond generally, before fees and expenses, to the performance of its underlying index, the Janus Small/Mid Cap Growth Alpha Index.
REFERENCE INDEX:
The Janus Small/Mid Cap Growth Alpha Index is composed of common stocks of small- and medium-sized companies that are selected by the index provider, Janus Index & Calculation Services LLC, from those companies included in the Solactive Small/Mid Cap Index, a universe of 2,500 small- and medium-sized capitalization stocks. The Underlying Index is designed to select small- and medium-sized capitalization stocks that are poised for “smart growth” by evaluating each company’s performance in 3 critical areas: growth, profitability, and capital efficiency. The Index Provider scores such stocks based on fundamental measures of their growth, profitability, and capital efficiency, and selects the top 10% of such eligible stocks scoring the highest using a proprietary quantitative methodology. To arrive at the top 10%, for each security in the stated universe, the quantitative methodology assigns a score in each of 10 different fundamental factors, relative to other eligible securities. The fundamental factors include measures that Janus Capital believes are tied to a stock’s outperformance relative to other small/mid cap stocks, and indicate a company’s performance with respect to growth (such as the revenue growth rate over 2- 5- and 8- year periods), profitability (such as margin expansion, profit margin and earnings per share over time) and capital efficiency (such as returns on invested capital).
The scores for each factor are then added together, with equal weighting, to arrive at an overall score. The stocks with the highest 10% of scores are then weighted within the Underlying Index according to their market capitalization. Finally, the stocks are sector-weighted to reflect the sector allocation weight of Janus Triton Fund, based on its most recent publicly available holdings. A stock may not represent more than 3% of the Underlying Index. The Underlying Index, Janus Small/Mid Cap Growth Alpha Index, seeks risk adjusted outperformance relative to a market capitalization weighted universe of small- and medium-sized capitalization growth stocks. Market capitalizations within the Underlying Index will vary, but as of January 29, 2016, they ranged from approximately $55 million to $15.8 billion. The Underlying Index is rebalanced on a quarterly basis based on the methodology described above.
Fund Top Constituents (02/26/2015):
| Columbia Pipeline Group Inc | 3.27% |
| ANSYS Inc | 1.97% |
| CDK Global Inc | 1.89% |
| Quintiles Transnational Holdings Inc | 1.87% |
| Gartner Inc | 1.82% |
| Jack Henry & Associates Inc | 1.78% |
| AMERCO | 1.69% |
| Discovery Communications Inc | 1.65% |
| VMware Inc | 1.63% |
| IDEXX Laboratories Inc | 1.60% |
Fund’s Sector Allocation (02/26/2015):
| Information Technology | 32.71% |
| Industrials | 19.03% |
| Consumer Discretionary | 16.47% |
| Health Care | 13.72% |
| Financials | 7.79% |
| Energy | 4.64% |
| Materials | 3.71% |
| Consumer Staples | 1.80% |
Useful Links:
JSMD Home Page
Category: Commodities>
ETFtrack comment:
Here is a comment fromJonathan Coleman, Head of Growth Equities and Portfolio Manager at Janus Capital:
“We view traditional fundamental active investing as both an art and a science. We were able to extract the science behind our legacy small and mid-cap investment process and quantified key attributes of Smart Growth and package them into a systematic process, creating a systematic index methodology.”
The Janus Smart Growth products are the first ETFs to launch since Janus’ November 2014 acquisition of VS Holdings, Inc., the parent company of VelocityShares, LLC, the developer of sophisticated solutions for institutional investors and traders. Janus’ exchange traded products business is approximately $3.2 billion in assets across 17 investment products as of Dec. 31, 2015.
At the end of December 2015, Janus Capital Group Inc. complex-wide assets totaled approximately $192.3 billion for shareholders, clients and institutions around the globe. Based in Denver, Colorado, JCG also has offices in London, Milan, Singapore, Hong Kong, Tokyo, Melbourne, Sydney, Paris, The Hague, Zurich, Frankfurt, Dubai and Taipei, as well as Boston, Mass., Darien, Conn., Princeton, N.J., West Palm, Fla., Chicago, Ill., and Newport Beach, Calif.