Janus Henderson MBS Active ETF

Issuer: Janus Henderson

Asset Class: Fixed Income

TER: 28bps

Trading Currency: USD

Pays Income: False

Listing Date: 12 May 2025

Ticker: JMBS

ISIN: IE000YMBL844

This actively managed fund offers focused exposure to the U.S. mortgage-backed securities (MBS) market. The strategy primarily targets securities issued by government-sponsored agencies such as Ginnie Mae, Fannie Mae, and Freddie Mac. These 'agency MBS' carry the implicit or explicit backing of the U.S. government, which significantly mitigates credit risk and makes them high-quality assets. The fund's active management allows the experienced portfolio team to navigate the unique complexities of this sector, such as prepayment risk, which is the risk that homeowners will refinance their mortgages early. By analyzing economic data, interest rate trends, and relative value across different types of mortgage pools, the managers aim to construct a portfolio that can deliver a consistent income stream and attractive risk-adjusted returns.

This investment can serve as a core component of a fixed-income allocation, potentially offering a higher yield than U.S. Treasury bonds without taking on significant credit risk. The active approach seeks to outperform passive MBS strategies by tactically adjusting the portfolio's duration and positioning to capitalize on market inefficiencies. For investors seeking diversification away from traditional corporate and government bonds, this strategy provides exposure linked to the U.S. housing market and interest rate cycles. It is well-suited for those looking to enhance their portfolio's income potential while maintaining a focus on capital preservation, given the high-quality nature of the underlying agency securities.