Janus Henderson Launches Short-Duration ABS ETF to Address Investor Demand for Yield and Credit Quality

Janus Henderson Investors has launched a new ETF, JABS, which targets yield and credit quality without rate fluctuations. The ETF primarily holds short-term, investment-grade, fixed-rate securitized assets and aims to address increasing investor demand for yield and diversification amid Fed rate uncertainty. It joins Janus Henderson's existing fixed-income ETF offerings, including the largest CLO ETF, JAAA, and the largest actively managed mortgage-backed securities ETF, JMBS.

Janus Henderson Investors has introduced a new Exchange-Traded Fund (ETF) called the Janus Henderson Asset-Backed Securities ETF (JABS), designed to meet the growing demand for yield and credit quality in the current economic climate. The ETF, which began trading on July 2, 2025, is aimed at investors seeking stability and diversification amid uncertainty over the Federal Reserve's interest rate policy [1].

JABS complements Janus Henderson's existing fixed-income ETF offerings, including the largest Collateralized Loan Obligations (CLO) ETF, JAAA, and the largest actively managed mortgage-backed securities ETF, JMBS. The new ETF is managed by John Kerschner, CFA, and Nick Childs, CFA, who bring extensive experience in managing securitized ETFs [1].

The JABS ETF focuses on short-term, investment-grade, fixed-rate securitized assets, offering a stable income stream with low volatility. It aims to provide investors with a fixed-rate counterpart to the floating-rate CLO ETF, JAAA, which offers high-quality floating-rate CLOs [1]. The fund's strategy includes active asset allocation, relative value analysis, and security selection based on yield per unit of risk, ensuring that investors receive attractive income with minimal risk [1].

The launch of JABS comes at a time when investors are increasingly seeking yield and diversification, particularly as the Federal Reserve's monetary policy remains uncertain. With the Fed's July meeting approaching, investors are watching closely for any potential rate cuts. However, economists and industry experts suggest that the Fed is unlikely to lower rates, given the strong performance of the labor market and the recent rise in inflation [2].

Janus Henderson's active securitized ETF suite now includes JABS, JAAA, JBBB, JMBS, and JSI, making it the second-largest active fixed income ETF manager by assets, with more than $57 billion in securitized assets under management [1].

References:

[1] https://www.morningstar.com/news/business-wire/20250723482647/janus-henderson-launches-asset-backed-securities-etf-jabs
[2] https://www.benzinga.com/etfs/new-etfs/25/07/46601813/etf-built-for-yield-hunters-abs-income-no-rate-drama
[3] https://www.scotsmanguide.com/news/is-there-any-chance-of-a-fed-rate-cut-in-july/