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Benzinga
Benzinga
Business
Chandrima Sanyal

An ETF Built For Yield Hunters—ABS Income, No Rate Drama

Denver,,Colorado,-,August,27,,2019:,Janus,Henderson,Investors,Entrance

Janus Henderson Investors added a new feather to its fixed income cap with the launch of the Janus Henderson Asset-Backed Securities ETF (NYSE:JABS).

JABS, a short-duration, investment-grade asset-backed securities (ABS) fund, aims to address increasing investor demand for yield and credit quality without the volatility of rate fluctuations. It enters the ring as a fixed-rate counterpart to Janus Henderson's blockbuster CLO ETF (NYSE:JAAA), which leads the pack in the floating-rate category.

Launched Wednesday, the ETF targets investors seeking yield and diversification amid uncertainty over the Fed's next move on interest rates. The fund will primarily hold short-term, investment-grade, fixed-rate securitized assets, following Janus Henderson's hallmark strategy of relative value analysis, active asset allocation, and security selection based on yield per unit of risk — offering a way to earn solid returns without the volatility of sudden rate shifts.

Also Read: A New Kind Of ETF Is Tempting Yield Chasers—With New Trade-Offs

JABS’ Flourishing ETF Family Includes…

  • JAAA – The largest CLO ETF, tracking high-quality floating rate CLOs
  • Janus Henderson B-BBB CLO ETF (BATS:JBBB) – BBB-rated floating rate CLOs
  • Janus Henderson Mortgage-Backed Securities ETF (NYSE:JMBS) – The largest actively managed mortgage-backed securities ETF
  • Janus Henderson Securitized Income ETF (NYSE:JSI) – A multi-sector securitized strategy across U.S. markets

With more than $57 billion in securitized AUM and now five actively managed funds in the product offering, Janus Henderson is the second-largest active fixed income ETF manager by assets, according to Morningstar and internal analysis.

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