Should Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) Be on Your Investing Radar?

Launched on 02/23/2016, the Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) 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 $415.12 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 GrowthThere's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.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 0.82%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Healthcare sector--about 28.90% of the portfolio. Industrials and Information Technology round out the top three.Looking at individual holdings, Neurocrine Biosciences Inc. (NBIX) accounts for about 3.54% of total assets, followed by Incyte Corporation (INCY) and Medpace Holdings Inc. (MEDP).The top 10 holdings account for about 23.43% of total assets under management.Performance and RiskJSMD seeks to match the performance of the Janus Small/Mid Cap Growth Alpha Index before fees and expenses. 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.The ETF has lost about -7.67% so far this year and was up about 2.28% in the last one year (as of 03/13/2025). In the past 52-week period, it has traded between $64.79 and $82.80.The ETF has a beta of 1.17 and standard deviation of 22.63% for the trailing three-year period. With about 265 holdings, it effectively diversifies company-specific risk.AlternativesJanus Henderson Small/Mid 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, JSMD is a reasonable 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 $10.78 billion in assets, Vanguard Small-Cap Growth ETF has $17.72 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.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.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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks