“Janus Henderson is well placed to capitalize on its experience analyzing issuer and borrower behavior in securitized products, and to utilize the specialist ETF skills of its Exchange Traded Products unit to build a product that can pinpoint and take advantage of inefficiencies in the MBS market,” said Mr. Kerschner.
The ETF will provide investors with the opportunity to gain exposure to mortgage-backed securities investments at a lower cost versus mutual funds.
“Investors currently have two main options in the MBS arena,” Mr. Childs said. “They can go the low-fee route of passive ETFs that have consistently underperformed the benchmark, or they can invest in higher-cost active mutual funds whose performance has tended to match or marginally beat the index over time. We believe this ETF has the potential to offer high correlations versus the Bloomberg Barclays U.S. Mortgage Backed Securities (MBS) Index, a competitive price and the high liquidity the market demands in an ETF.”
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If the SEC approves the ETF, Janus Henderson expects to launch it around September 2018.
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