JBBB ETF

Janus Henderson B-BBB CLO ETF offers a high dividend yield of 7.7%, making it a reliable income source, especially in a low-return market environment. The ETF's diverse portfolio of B to BBB rated CLO debt investments mitigates sector-specific risks and benefits from floating interest rates. Historical data shows CLO default rates have remained low, suggesting the perceived risk of JBBB is overblown.

Narrowing credit spreads and rising default rates favor investment-grade securities over non-investment grade. JBBB is one of the strongest investment-grade ETFs in the market, with a 7.8% dividend yield and an outstanding performance track record. It is variable rate too, a negative moving forward. LQD is one of the largest investment-grade ETFs in the market, focusing on corporate bonds. Its 4.3% dividend yield is much lower, but it's fixed rate.

The JBBB ETF gives investors access to BBB-B rated CLO debt tranches. The JBBB ETF has benefited from credit spreads collapsing to cycle-lows, driving strong performance in the last few months despite elevated credit defaults. However, recent weak economic data is spurring a rapid re-pricing of credit risk which may act as a headwind for the JBBB ETF.

DENVER--(BUSINESS WIRE)--Janus Henderson Investors (NYSE: JHG) today announced that the Janus Henderson B-BBB Collateralized Loan Obligation ETF (JBBB), has exceeded $1 billion in AUM. JBBB is only the second CLO ETF to reach $1 billion in AUM and is the second largest CLO ETF behind Janus Henderson's AAA CLO ETF (JAAA) as measured by AUM.1 JBBB now represents 55% of all below-AAA CLO ETF AUM.2 Following the success of JAAA, JBBB was launched in January 2022 and was the first ETF focused on pro.

It is prudent to consider risk management in high-yield investments during a potential market correction. JBBB offers lower risk CLO investment with 7.8% yield, suitable for a cash-like alternative. CLOs offer high yield with low risk due to structural protections, JBBB provides one attractive risk-reward alternative.

Investors looking for momentum may be interested in considering Janus B-BBB Clo ETF JBBB, as the fund recently reached a 52-week high and has increased by 8.78% from its lowest price of $44.97/share.

The Janus Henderson B-BBB CLO ETF offers exposure to U.S. collateralized loan obligations within the category of securitized fixed income securities. The fund has a distribution yield of 8.1% and has outperformed traditional bond ETFs with a return of 13% over the past year. We advise caution at the current level considering historically tight credit spreads, and the potential for declining interest rates making fixed-rate debt more attractive.

Collateralized loan obligations, or CLOs, are complex financial instruments consisting of a pool of loans, offering a way to invest in corporate debt with a mechanism to mitigate interest rate risk. The Janus Henderson B-BBB CLO ETF provides access to floating-rate CLOs and is a unique investment opportunity for individuals and institutions. The JBBB fund offers diversification potential and floating rate exposure, but investors should be aware of the higher credit risk associated with B to BBB-rated CLOs.

JBBB invests in CLO tranches of senior secured loans, focusing on BBB tranches. The fund yields 7.9% with below-average credit risk, a strong value proposition and risk-return profile. The fund has benefited from rising rates over the last few years, and rate cuts could impact the fund going forward.