(JBBB) Janus Detroit Street Trust - Ratings and Ratios

Janus Henderson B-BBB CLO ETF (JBBB) is designed for investors seeking exposure to the U.S. collateralized loan obligation (CLO) market, with a focus on higher-quality tranches. The fund caps its exposure to below-investment-grade CLOs (BB+ or lower) at 15% of its net assets, ensuring a more conservative approach. This limit applies at the time of purchase or when the adviser deems unrated securities to be of comparable quality.

CLOs are structured financial products backed by leveraged loans, offering different risk and return profiles through various tranches. The B-BBB designation indicates a focus on higher tranches, which are less risky but offer lower returns. These tranches are typically senior secured, reducing volatility and providing a more stable income stream.

The ETF primarily invests in U.S. dollar-denominated CLOs, which are attractive in low-interest-rate environments for their floating-rate nature, shielding against rising interest rates. This focus allows investors to tap into the U.S. leveraged loan market, which offers diversification benefits and a yield premium compared to traditional fixed-income assets.

Derivatives are used solely for hedging to mitigate risks associated with the funds CLO portfolio. This approach is more about risk management than speculation, aiming to protect investor returns rather than enhance them.

With approximately $2.028 billion in assets under management, JBBB is listed on the BATS exchange under the ticker JBBB. As a Bank Loan ETF, it offers a targeted strategy for those looking to incorporate senior secured loans into their portfolios, providing a balance of income and risk management.