Janus Henderson Small/Mid Cap Growth Alpha ETF

Janus Henderson Small/Mid Cap Growth Alpha ETF (JSMD) is an actively managed fund. It uses a computer-driven, rules-based model to pick about 126 small- and mid-sized US growth stocks and measures itself against the Russell 2500 Growth Index. It costs 0.30% a year and trades heavily, with 197% annual turnover. From its 2016 launch through December 31, 2025, it returned 13.34% a year, versus 12.09% for that index.

• Over the year to Oct 27, 2026, JSMD returned +5.2%, 7th of 7 among similar funds.
• Its 5-year annualized return was +6.7% and its 10-year +12.6%.
• In the 2020 COVID crash it fell 38.9% and regained its old high 4 months after the low.
• Its worst full calendar year was 2022 (-22.9%); its best was 2019 (+31.0%).
• The deepest fall in its price history was 39% (Jan 23, 2020 to Mar 23, 2020), recovered by Jul 23, 2020.

As of Jul 31, 2026, the fund held 126 securities; the ten largest made up 16.64% of assets, and 2.43% sat in cash and money-market holdings.

• Over the three months to Jul 31, 2026, investors added a net $36.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +7.39%, +5.92%, -8.39%.

JSMD is an actively managed Janus Henderson ETF, so it does not copy an index. It keeps at least 80% of net assets in small- and mid-sized companies chosen for growth potential. A company counts as small/mid cap if its total stock market value falls within the 12-month range of the Russell 2500 Growth Index: $4 million to $35.25 billion as of October 31, 2025.

Stock picking follows set rules. A proprietary computer model weighs signals drawn from research into company fundamentals, aiming for "alpha," or returns above the fund's benchmark. Portfolio optimization techniques size positions so the fund's overall traits stay close to the benchmark's, to manage risk. As of July 31, 2026, the fund held 126 stocks, led by Ryman Hospitality Properties (about 2%), Sterling Infrastructure (1.9%) and Exelixis (1.7%); the top 10 made up 16.6% of assets.

Managers can change holdings daily, and they trade heavily: turnover was 197% in the fiscal year covered by the February 2026 prospectus, roughly like replacing the whole portfolio twice. That adds trading costs and can create short-term capital gains, taxed at ordinary income rates when distributed. The fund may also lend up to one-third of its total assets to qualified borrowers for extra income, with the risk that a borrower fails to return the shares.

• JSMD charges 0.3% a year, versus an average of 0.26% for the similar funds below (4th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $31 in the first year and $381 over 10 years (assuming a 5% annual return).

It offers a concentrated bet on smaller growth companies with above-market swings, so it fits better as a small add-on than as the base of a portfolio.

JSMD could add smaller, faster-growing US companies that large-company index funds hold little of. The price is bigger swings. The fund launched in 2016, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 38.9%, but it got back to its old high within about four months. The 2022 decline took longer to heal. The fund fell 29.6% between January and June 2022 and did not regain its peak until February 2024, about 20 months later. Its worst calendar year was 2022, when it lost 23%. A retiree who had to sell shares for spending money during stretches like these would have locked in losses.

Income is small: the trailing yield was 0.37% as of October 27, 2026, paid quarterly. Under the SEC's standard example, costs come to $31 in the first year on $10,000. Past results don't predict future ones, and any plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).