Janus Henderson Investors has expanded its active fixed income ETF roster with the launch of the Janus Henderson Emerging Markets Debt Hard Currency ETF (JEMB US) on NYSE Arca.

Janus Henderson has launched its first active ETF focused on bonds from emerging market issuers.

With an expense ratio of 0.52%, JEMB aims to deliver a combination of income and long-term capital growth by leveraging the opportunities presented by hard currency emerging market debt.

Hard currency emerging market debt refers to bonds issued by emerging market governments in widely recognized currencies such as the US dollar or the euro, as opposed to their local currencies.

The asset class offers investors access to the growth potential of developing countries while mitigating the currency risk often associated with local currency investments.

The universe of hard currency emerging market debt has grown significantly with the number of participating countries more than doubling over the past two decades to include 70 nations. These countries represent a wide spectrum of economic development, collectively accounting for over 60% of global GDP and encompassing 80% of the world’s population.

Janus Henderson notes that this broad participation provides investors with access to a diverse pool of sovereign credit risk and an opportunity to diversify their portfolios beyond domestic credit markets.

Historically, hard currency emerging market debt has also delivered attractive returns, particularly when adjusted for credit quality. With approximately half of the universe now rated investment grade, the asset class offers yields comparable to those found in US high-yield corporate debt.

Investment Strategy

JEMB leverages a well-established and focused investment strategy that Janus Henderson has offered since 2013. Managed by a seasoned team of portfolio managers—Bent Lystbaek, Jacob Ellinge Nielsen, Thomas Haugaard, and Sorin Pirau—the fund employs a disciplined, active investment approach that emphasizes credit risk premia and rigorous sovereign risk analysis.

Underpinned by robust on-the-ground research, the team’s investment process concentrates on country allocation, security selection, and portfolio construction, with a strong focus on diversification and active credit risk management.

Unlike many other strategies, JEMB does not heavily rely on global macroeconomic factors such as interest rates and currency movements. Instead, the fund focuses on identifying relative investment opportunities by assessing the direction of sovereign credit risk.

Janus Henderson boasts a strong history in active fixed income ETFs, offering a range of pioneering products, including the Janus Henderson AAA CLO ETF (JAAA US), the largest CLO ETF with $11.5 billion in assets, and the Janus Henderson B-BBB CLO ETF (JBBB US), which targets floating-rate CLOs with credit ratings between B- and BBB+.

Jim Cielinski, Global Head of Fixed Income at Janus Henderson Investors, commented: “The launch of the Janus Henderson EMD Hard Currency ETF is one more step in our strategic initiative to be a leader in active fixed income ETFs. JEMB will now be a part of one of the fastest-growing and most successful active ETF platforms in the industry.”