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JXX is the first fundamental active equity ETF from the firm’s Denver-based equities team
DENVER, February 05, 2025--(BUSINESS WIRE)--Janus Henderson Investors (NYSE: JHG) today announced it has launched the Janus Henderson Transformational Growth ETF (Ticker: JXX), the first fundamental active equity ETF from the firm’s Denver-based Equities team, which is known for growth investing.
The Fund is managed by Portfolio Managers Nick Schommer, CFA, and Brian Recht.
JXX is an expansion of Janus Henderson’s Denver Equities team into managing ETFs, utilizing the team’s well-established, bottom-up fundamental research philosophy and process. Janus Henderson has a long history of managing U.S. equity growth portfolios, including its current U.S. concentrated growth strategy that dates back nearly forty years to 1985.
The firm has a long-standing track record of high-conviction, growth equity investing. This new actively managed equity ETF seeks to pursue its investment objective by investing with conviction primarily in a portfolio of approximately 20-30 equity securities. These securities will be selected for their growth potential, using an overall portfolio with characteristics tied to secular themes transforming society. The themes of focus include: artificial intelligence, migration to the cloud, deglobalization, digitization of the economy (including e-commerce), healthcare innovation, or other long-term innovations.
The portfolio managers apply a bottom-up approach that focuses on fundamental research and considers a company’s sustainable competitive advantages, long-term growth potential, and shareholder value, among other factors.
Since 1957, the 10 largest stocks in the S&P 500 have underperformed an equal-weighted index of the remaining 490 stocks by 2.4% per year. But the last decade has been a very notable departure from that trend, with the largest 10 outperforming by a massive 4.9% per year on average.1 Janus Henderson believes this domination of index returns by the largest stocks has created an opportunity for active management.
"We believe constructing a focused portfolio of high-quality, competitively advantaged businesses with characteristics tied to the most important secular themes transforming society may lead to sustainable relative outperformance over time," said Mr. Schommer.
"Given the extreme concentration in the market, we believe JXX’s fundamental, actively managed approach seeks to provide thoughtful diversification away from the index and has the potential to yield transformational growth potential," said Mr. Recht.