JBBB 📈 Janus Detroit Street Trust - Overview

The Janus Detroit Street Trust - Janus Henderson B-BBB CLO ETF, listed on BATS under the ticker JBBB, is designed to provide investors with exposure to a portfolio of U.S. dollar-denominated Collateralized Loan Obligations (CLOs). To manage risk, the fund adheres to a specific investment guideline: it will not allocate more than 15% of its net assets to CLOs that are rated below investment grade, specifically BB+ or lower, at the time of purchase. This rating threshold is crucial for maintaining the fund's overall credit quality. If a CLO is unrated, the fund's adviser will assess its creditworthiness to ensure it aligns with the fund's investment criteria, essentially treating it as if it were of comparable quality to rated CLOs.

The primary focus of the Janus Henderson B-BBB CLO ETF is on investing in U.S. dollar-denominated CLOs, which are essentially securities backed by a pool of loans made to corporations. This investment strategy allows the fund to capitalize on the yield generated by these loans while aiming to provide a level of diversification and potentially lower volatility compared to other fixed-income investments. The fund may also utilize derivatives, but their use is strictly limited to hedging purposes. This means derivatives are employed to mitigate specific risks associated with the fund's existing portfolio of CLOs, such as interest rate risk or credit risk, rather than for speculative purposes. By doing so, the fund aims to protect its portfolio and enhance its risk-adjusted returns.

As an exchange-traded fund (ETF), the Janus Henderson B-BBB CLO ETF offers investors the benefits of transparency, liquidity, and diversification. Being categorized under the Bank Loan ETF category, it is particularly suited for investors seeking to tap into the bank loan market, which can provide floating-rate income and a degree of protection against rising interest rates. The fund's structure as an ETF also allows for the trading of its shares on an exchange, similar to stocks, which can be attractive to investors looking for flexibility and ease of access to the CLO market.