Janus Henderson’s JAAA Becomes First CLO ETF to Surpass $30B in Assets
Janus Henderson Investors’ AAA CLO ETF has surpassed $30 billion in assets under management, underscoring growing investor demand for high-quality floating-rate securities as interest-rate volatility reshapes fixed-income portfolios.
The Janus Henderson AAA CLO ETF, trading under the ticker JAAA, attracted more than $5.7 billion in net inflows through Aug. 10. The fund is now the world’s largest CLO ETF and the second largest actively managed fixed-income ETF, according to the firm.
JAAA had $30.07 billion in net assets as of Aug. 13. Its 30-day SEC yield was 4.87%, its year-to-date return was 2.9% and its annual expense ratio was 0.20%, according to the fund’s website.
“JAAA provides investors with a differentiated source of income and low correlation to traditional fixed income asset classes while seeking to generate attractive risk-adjusted returns,” John Kerschner, Janus Henderson’s global head of securitized products and a portfolio manager, said.
JAAA’s expansion reflects broader growth in active fixed-income ETFs as asset managers package institutional credit and securitized strategies into liquid, transparent and generally tax-efficient investment vehicles. Fixed-income ETFs accounted for more than half of active ETF flows through April, despite representing about 30% of actively managed fixed-income assets, according to J.P. Morgan Asset Management.
Janus Henderson has expanded its securitized ETF lineup beyond JAAA. In February, it launched the AA-A CLO ETF, or JA, which provides exposure to higher-rated CLO tranches below AAA. The firm also offers JBBB, which invests in generally BBB-rated floating-rate CLO securities; JMBS, an actively managed mortgage-backed securities ETF; JABS, an investment-grade asset-backed securities ETF; and JSI, a broader U.S. securitized-markets ETF.
Competition is also increasing. Barings and Pacer ETFs announced two active fixed-income products in June targeting CLOs and secured credit.
