Is Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) a Strong ETF Right Now?

The Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) was launched on 02/23/2016, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Small Cap Growth category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexThe fund is managed by Janus Henderson. JSMD has been able to amass assets over $452.09 million, making it one of the average sized ETFs in the Style Box - Small Cap Growth. Before fees and expenses, JSMD seeks to match the performance of the Janus Small/Mid Cap Growth Alpha Index.The Janus Henderson Small/Mid Cap Growth Alpha Index selects small- and medium-sized capitalization stocks that are poised for smart growth by evaluating each company performance in three critical areas: growth, profitability, and capital efficiency.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Annual operating expenses for JSMD are 0.30%, which makes it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.74%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.For JSMD, it has heaviest allocation in the Healthcare sector --about 27.70% of the portfolio --while Industrials and Information Technology round out the top three.Taking into account individual holdings, Neurocrine Biosciences Inc. (NBIX) accounts for about 3.36% of the fund's total assets, followed by Incyte Corporation (INCY) and Medpace Holdings Inc. (MEDP).Its top 10 holdings account for approximately 23.34% of JSMD's total assets under management.Performance and RiskSo far this year, JSMD has gained about 2.80%, and was up about 20.28% in the last one year (as of 01/21/2025). During this past 52-week period, the fund has traded between $64.36 and $82.80.JSMD has a beta of 1.15 and standard deviation of 23.32% for the trailing three-year period. With about 266 holdings, it effectively diversifies company-specific risk.AlternativesJanus Henderson Small/Mid Cap Growth Alpha ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.IShares Russell 2000 Growth ETF (IWO) tracks Russell 2000 Growth Index and the Vanguard Small-Cap Growth ETF (VBK) tracks CRSP U.S. Small Cap Growth Index. IShares Russell 2000 Growth ETF has $12.92 billion in assets, Vanguard Small-Cap Growth ETF has $20.22 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Small Cap Growth.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD): ETF Research Reports Incyte Corporation (INCY): Free Stock Analysis Report Neurocrine Biosciences, Inc. (NBIX): Free Stock Analysis Report iShares Russell 2000 Growth ETF (IWO): ETF Research Reports Medpace Holdings, Inc. (MEDP): Free Stock Analysis Report Vanguard Small-Cap Growth ETF (VBK): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks