Daily ETF Watch: Janus Plans 2 New Funds

Firm looks to expand its lineup.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Janus Capital Group recently filed for two new ETFs. The firm acquired VelocityShares last year and has filed exemptive relief requests to launch its own index-based and actively managed ETFs. These funds would be its first in-house ETF launches, as the VelocityShares ETFs (now branded under Janus’ name) and exchange-traded notes launched prior to the acquisition.

 

The two funds include the Janus Small Cap Growth Alpha ETF and the Janus Small/Mid Cap Growth Alpha ETF. Each tracks an index that targets stocks based on their growth, profitability and capital efficiency characteristics using a composite score derived from a quantitative methodology. The funds are weighted by a somewhat-modified market-capitalization approach.

 

The ETFs’ underlying indexes select the top 10 percent of companies in their investment universe based on their scores, the prospectus said. The small-cap fund selects its components from a universe of 2,000 stocks, while the small-/midcap fund draws its holdings from a universe of 2,500 stocks. According to the prospectus, the idea is to select stocks that are “poised for ‘smart growth.’”

 

The filing did not include tickers, expense ratios or listing exchanges.


Contact Heather Bell at [email protected].

 

 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.