Is Janus Henderson Small Cap Growth Alpha ETF (JSML) currently considered a top-performing ETF?

Overview of Janus Henderson Small Cap Growth Alpha ETF (JSML)

Launched on February 23, 2016, the Janus Henderson Small Cap Growth Alpha ETF (JSML) offers investors access to the small-cap growth segment of the market through a smart beta approach.

Understanding Smart Beta ETFs

Traditionally, the ETF industry has been dominated by funds tracking market capitalization-weighted indexes, which aim to mirror the performance of specific market segments or the overall market.

For those who trust in market efficiency, market cap indexes are a popular choice, as they offer low-cost, transparent, and convenient exposure to market returns.

However, some investors prefer smart beta strategies, which follow alternative, non-market cap weighted methodologies. These funds are designed for those seeking to outperform the market by selecting stocks based on specific criteria.

Smart beta indexes typically target stocks with favorable risk and return profiles, using fundamental factors or a blend of such metrics. The smart beta universe includes a variety of strategies, from simple equal-weighting to more complex approaches based on fundamentals, volatility, or momentum. It's important to note that not all smart beta strategies have consistently delivered superior returns.

Fund Management and Index Details

Janus Henderson manages the JSML ETF. JSML currently holds over $296.56 million in assets, placing it among the average-sized funds in the small-cap growth category. The ETF aims to replicate the performance of the Janus Small Cap Growth Alpha Index before fees and expenses.

The Janus Henderson Small Cap Growth Alpha Index identifies small-cap companies with strong growth potential by assessing their performance in three key areas: growth, profitability, and capital efficiency.

Fees and Expenses

Cost is a crucial consideration when choosing an ETF. Lower-cost funds can outperform more expensive ones when other factors are equal.

JSML charges an annual operating expense ratio of 0.30%, which is comparable to similar funds in its category.

The ETF also offers a 12-month trailing dividend yield of 0.89%.

Sector Allocation and Leading Holdings

Examining an ETF’s holdings is essential, even though these funds offer benefits like diversification and reduced single-stock risk. Most ETFs, including JSML, provide daily transparency of their portfolios.

JSML allocates the largest portion of its assets to the Industrials sector (approximately 25.7%), with Healthcare and Information Technology also among the top sectors.

Among individual holdings, Bloom Energy Corporation Class A (BE) represents about 2.36% of assets, followed by Atmus Filtration Technologies Inc. (ATMU) and Cactus Inc. Class A (WHD).

The fund’s top 10 holdings make up roughly 19.32% of total assets under management.

Performance and Risk Profile

Year-to-date, JSML has gained around 4.7%, and over the past year (as of February 27, 2026), it has risen approximately 19.79%. During the last 52 weeks, the ETF’s price ranged from $54.00 to $78.93.

With a beta of 1.22 and a three-year standard deviation of 21.24%, JSML provides exposure to 121 holdings, helping to mitigate company-specific risks.

Other Options to Consider

JSML is a solid choice for investors aiming to outperform the small-cap growth segment. However, there are alternative ETFs in this space worth considering.

• iShares Russell 2000 Growth ETF (IWO) tracks the Russell 2000 Growth Index and manages $13.36 billion in assets with a 0.24% expense ratio.
• Vanguard Small-Cap Growth ETF (VBK) follows the CRSP U.S. Small Cap Growth Index, has $21.51 billion in assets, and charges a 0.05% expense ratio.

Those seeking lower costs and reduced risk may prefer traditional market cap-weighted ETFs that aim to match the returns of the small-cap growth segment.

Conclusion

To explore more about JSML and other ETFs, use screening tools to find products that align with your investment goals and stay updated with the latest ETF news and analysis at the Zacks ETF Center.