Janus Henderson Launches Structured Income ETFs
Janus Henderson Investors has launched two exchange-traded funds (ETFs) designed to provide investors with access to professionally managed, diversified, transparency equity-linked income strategies.
The Janus Henderson Equity Linked High Income ETF (JELH) and the Janus Henderson Equity Linked Moderate Income ETF (JELM) are intended for income-focused investors, advisors, and institutions seeking diversification beyond bonds and traditional equities, and are managed by Portfolio Managers David Elms, Natasha Sibley, CFA, and Jamie Sandells PhD, who have over six decades of derivatives and structured credit expertise combined.
The new ETFs are designed to package equity linked instruments and are intended to be diversified across underlying equities, bank counterparties, and maturities. The funds are managed to deliver differentiated income.
Unlike traditional income investments such as bonds or dividend-paying stocks, Janus Henderson notes that equity linked instruments provide exposure to equity markets while offering structured income potential with downside barrier mitigation features embedded in their holdings.
“Structured income strategies aim to reshape the risk-return tradeoff by harvesting equity volatility to target compelling income profiles,” said Elms. “Our team applies a quantitative framework that intends to balance yield, volatility, correlation, and credit exposure, building diversified portfolios across positions, structures, counterparties, and maturities.”
“Our clients are looking for risk-managed income solutions without the operational burden, lifecycle management, concentration and credit risk that often come with individual structured notes. These ETFs represent a significant step forward in how investors can access structured income solutions,” said Greg Trinks, managing director, head of U.S. Product at Janus Henderson. “JELH and JELM seek to deliver institutional-grade sourcing, diversification, and ongoing portfolio management—all in the simplicity of an ETF, while giving investors a choice that may align with their unique income preferences.”
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.