Janus Henderson has introduced its first socially responsible ETFs with the launch of five actively managed strategies on NYSE Arca.
Nick Cherney, Head of ETPs at Janus Henderson.
Consisting of three equity and two fixed income funds, the new ETFs avoid companies from industries such as adult entertainment, alcohol, gambling, tobacco, weapons, fossil fuels, genetic engineering, and nuclear power, as well as specifically target firms that are positively impacting the environment and society.
Within this universe of firms, security selection is conducted using a fundamental bottom-up approach that considers, among other factors, a company’s growth potential, competitive positioning, operational quality, and strategy.
Each fund has come to market with approximately $50 million in assets.
Nick Cherney, Head of ETPs at Janus Henderson, said: “The launch of this comprehensive suite of sustainable ETFs showcases Janus Henderson’s intention to help investors embrace sustainability in an authentic way without sacrificing a commitment to robust investment results. These ETFs also represent the intersection of two very significant growth opportunities for Janus Henderson – our ETF franchise and the surge in client demand for robust ESG solutions.”
Paul LaCoursiere, Global Head of ESG Investments at Janus Henderson, added: “To us, sustainability is a logical and critical component of a robust investment process. And it is our belief that addressing complex and nuanced factors such as climate change and social issues in a meaningful way requires an active and engaged investment approach. It is through detailed analysis and regular interaction with companies that we believe true progress and sound investment decisions can be made.”
The ETFs
The Janus Henderson US Sustainable Equity ETF (SSPX US) invests in a high-conviction portfolio of approximately 30 to 50 US-listed companies that are contributing to sustainable development through alignment with ESG megatrends such as climate change, resource constraints, and growing and aging populations. The fund comes with an expense ratio of 0.60%.
The Janus Henderson International Sustainable Equity ETF (SXUS US) applies the same strategy to a universe of developed market stocks listed outside of the US. The fund also comes with an expense ratio of 0.60%.
The Janus Henderson Net Zero Transition Resources ETF (JZRO US) invests in 25 to 50 equities of companies worldwide whose products and services are contributing to the decarbonization of the global economy. Eligible firms include those from the materials, energy, utility, agricultural, industrial, and consumer staples sectors that are aligned with themes such as carbon reduction, energy transition, sustainable mobility, sustainable industry, and sustainable agriculture. The fund comes with an expense ratio of 0.55%.
The Janus Henderson Sustainable Corporate Bond ETF (SCRD US) invests primarily in US investment-grade dollar-denominated corporate bonds, maintaining an average portfolio duration within three years of the Bloomberg US Corporate Bond Index. Up to 15% of the fund’s assets may be allocated to high-yield bonds with ratings above ‘B-’. The ETF selects issuers that are aligned with positive ESG themes including the transition to a green economy, economic inclusion and community development, technology and innovation, and health and well-being. The fund comes with an expense ratio of 0.35%.
The Janus Henderson Sustainable & Impact Core Bond ETF (JIB US) follows the same socially responsible investment approach as described above but will also hold a mix of Treasury, mortgage-backed, and asset-backed securities in addition to corporate bonds. The fund comes with an expense ratio of 0.39%.