Should Janus Henderson Small Cap Growth Alpha ETF (JSML) Be on Your Investing Radar?
Looking for broad exposure to the Small Cap Growth segment of the US equity market? You should consider the Janus Henderson Small Cap Growth Alpha ETF (JSML), a passively managed exchange traded fund launched on February 23, 2016.The fund is sponsored by Janus Henderson. It has amassed assets over $262.50 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.Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Additionally, growth stocks have a greater level of risk associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments. CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.3%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.59%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector -- about 21.3% of the portfolio. Industrials and Healthcare round out the top three.Looking at individual holdings, Sterling Infrastructure Inc. (STRL) accounts for about 3.08% of total assets, followed by Primoris Services Corporation (PRIM) and Aurinia Pharmaceuticals Inc. (AUPH).The top 10 holdings account for about 22.55% of total assets under management.Performance and RiskJSML seeks to match the performance of the Janus Small Cap Growth Alpha Index before fees and expenses. The Janus Henderson Small Cap Growth Alpha Index selects small-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 added roughly 14.98% so far this year and it's up approximately 8.03% in the last one year (as of 12/16/2025). In the past 52-week period, it has traded between $54.00 and $77.10.The ETF has a beta of 1.23 and standard deviation of 21.66% for the trailing three-year period. With about 115 holdings, it effectively diversifies company-specific risk.AlternativesJanus Henderson Small 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, JSML is a sufficient 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 $13.42 billion in assets, Vanguard Small-Cap Growth ETF has $20.80 billion. IWO has an expense ratio of 0.24% and VBK charges 0.07%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>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 Cap Growth Alpha ETF (JSML): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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