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 traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexJSMD is managed by Janus Henderson, and this fund has amassed over $565.73 million, which makes it one of the average sized ETFs in the Style Box - Small Cap Growth. JSMD 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.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.30%, making it on par with most peer products in the space.JSMD's 12-month trailing dividend yield is 0.80%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.JSMD's heaviest allocation is in the Financials sector, which is about 20.7% of the portfolio. Its Information Technology and Industrials round out the top three.Looking at individual holdings, Equitable Holdings Inc. (EQH) accounts for about 2.3% of total assets, followed by Sofi Technologies Inc (SOFI) and Hasbro Inc. (HAS).JSMD's top 10 holdings account for about 21.14% of its total assets under management.Performance and RiskThe ETF has added about 6.29% and is up about 15.06% so far this year and in the past one year (as of 07/28/2025), respectively. JSMD has traded between $62.52 and $82.80 during this last 52-week period. The ETF has a beta of 1.08 and standard deviation of 21.42% for the trailing three-year period. With about 108 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 $11.95 billion in assets, Vanguard Small-Cap Growth ETF has $19.73 billion. IWO has an expense ratio of 0.24% and VBK changes 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 GrowthBottom 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks