JMBS Profile
The Janus Henderson Mortgage-Backed Securities ETF is strategically designed to achieve its investment objectives through a focused allocation in mortgage-related instruments. Under typical market conditions, the fund commits at least 80% and often nearly all of its net assets, including any borrowed funds, to a diversified portfolio of mortgage-backed securities. This substantial investment in mortgage-related fixed income assets allows the fund to leverage opportunities within the mortgage market while managing associated risks.
The fund primarily targets mortgage-backed securities (MBS), including those issued by government agencies, as well as private-label MBS. These securities represent claims on the cash flows from mortgage loans, and their performance is closely tied to the underlying mortgage market dynamics. By investing across various maturities, the fund aims to capture a broad range of mortgage market opportunities and manage interest rate risk effectively.
In addition to its core holdings in mortgage-backed securities, the fund may also employ derivatives to enhance its investment strategy. Derivatives can be used for purposes such as hedging interest rate risk or gaining exposure to certain market segments without directly holding the underlying securities. This flexibility allows the fund to adapt to changing market conditions and refine its risk-return profile.
Overall, the Janus Henderson Mortgage-Backed Securities ETF offers investors targeted exposure to the mortgage market, combining a significant allocation to mortgage-backed securities with strategic use of derivatives. This approach aims to deliver attractive returns while navigating the complexities of the mortgage and fixed income markets. The fund's emphasis on mortgage-related instruments and derivatives underscores its commitment to capitalizing on market opportunities and managing risks effectively.
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