Janus Henderson Investors launched a new exchange-traded fund that will seek current income with a focus on capital preservation.
The Janus Henderson Securitized Income ETF, which trades under the ticker symbol JSI, aims to produce high income via exposure to what the London-based asset management firm determines are "the most attractive opportunities" in the U.S. securitized market on a risk-adjusted basis, according to a Nov. 9 news release.
The ETF, which has a net annual expense ratio of 0.5% and no withdrawal lockups, expects to yield a monthly dividend between 7.5% and 8.5%, according to a spokesperson. With a net asset value of $50 million as of Nov. 8, the fund is expected to invest in several sectors, including asset-backed securities, commercial mortgage-backed securities, collateralized loan obligations and mortgage credit.
Portfolio managers Nick Childs and John Kerschner, who is also head of U.S. securitized products, were chosen as the fund's managers.
"We believe securitized credit offers some of the most compelling yields available in the fixed-income market with minimal interest rate risk," Kerschner said in the release. "Investors are generally underexposed to securitized credit, and JSI offers direct exposure to key areas of the securitized markets that investors otherwise wouldn't have the ability to access."
JSI will join the firm's suite of fixed-income ETFs, which includes the Janus Henderson AAA CLO ETF and the Janus Henderson Mortgage-Backed Securities ETF.
"The securitized market is sizable and provides a significant opportunity for investors and JSI is another example of Janus Henderson addressing client needs through our highly differentiated suite of ETF," Nick Cherney, head of innovation at Janus Henderson, said in the release.
Janus Henderson had $308.3 billion in assets under management as of Sept. 30.
