Janus Henderson Investors' ETF Take on the MBS Market

Janus Henderson Investors expanded its line of ETFs with an actively managed strategy to help fixed-income investors access the mortgage-backed securities market.

On Thursday, Janus Henderson Investors launched the Janus Henderson Mortgage-Backed Securities ETF (NYSEArca: JMBS), which has a 0.35% expense ratio.

“JMBS gives investors seeking liquidity and minimal credit risk a strong option to potentially generate better risk-adjusted returns than low-cost passive MBS ETFs or higher fee active MBS mutual funds,” Nick Cherney, Head of Exchange Traded Products, said in a note.

The active ETF’s portfolio managers include John Kerschner, Co-Portfolio Manager of the Fund, and Nick Childs, is Co-Portfolio Manager of the Fund.

Investing in Mortgage-Related Instruments

The Janus Henderson Mortgage-Backed Securities ETF tries to achieve income and capital appreciation by investing mainly in mortgage-related instruments, according to the fund’s prospectus.

The mortgage-related fixed income instruments include residential and commercial mortgage-backed securities (“MBS”), collateralized mortgage obligations, stripped mortgage-backed securities, mortgage pass-through securities and other securities representing an interest in or secured by or related to mortgages, including asset-backed securities and securities issued by other ETFs that invest principally in MBS.