Janus Henderson is joining the ESG rush in the $6.8 trillion exchange-traded fund market. The $428 billion asset manager is launching five actively managed ETFs that integrate sustainable investing criteria, according to a statement Thursday.
Three will invest in equities, with products targeting U.S., international and natural-resource stocks. Two focus on fixed income, buying corporate credit and a broader range of bonds.
They’re the latest addition to the booming industry for funds that meet higher environmental, social and governance standards. In 2020 and the first half of 2021, 57 U.S.-listed ETFs incorporating ESG criteria debuted, compared with 40 in the previous two years, according to data compiled by Bloomberg.
“We’ve just seen a significant shift over the last probably two years of more and more clients moving from talking about ESG and thinking about ESG to acting and making significant allocations,” Nick Cherney, head of exchange-traded products at Janus, said in an interview.
The new products are:
• The International Sustainable Equity ETF (SXUS)
• The Net Zero Transition Resources ETF (JZRO)
• The Sustainable & Impact Core Bond ETF (JIB)
• The Sustainable Corporate Bond ETF (SCRD)
• The U.S. Sustainable Equity ETF (SSPX)
The estimated expense ratios for the five funds range from 0.35% to 0.6%.
The equity funds aim to be “high conviction, high impact portfolios” that consist of 30 to 60 stocks, Cherney said.
In actively managing the products, Janus can go beyond just screening companies and also conduct deep analysis on potential holdings, he said.
“It is inadequate to position a fund as being sustainable or ESG if all it does is apply third-party negative screens,” Cherney said. “The reality is that the issues surrounding sustainability are extraordinarily complex.”
[More: Putnam launches its first ETFs]
Advisors can set their practice apart and win more business with a powerful graphic describing their unique business and value proposition.
The Labor Department's reversal from its 2022 guidance has drawn approval from crypto advocates – but fiduciaries must still mind their obligations.
With $750 million in assets and plans to hire a RIA Growth Lead, Autopilot is moving beyond retail to court advisors with separately managed accounts and integrations with RIA custodians such as Schwab and Fidelity.
Elsewhere on the East Coast, a Boca Raton-headquartered shop has acquired a fellow Florida-based RIA in "a natural evolution for both organizations."
After advising on nearly $700 million in retirement assets, 27-year veteran Greg Mykytyn is bringing his expertise in ESOP and 401(k) plans to the national RIA in Texas.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
From direct lending to asset-based finance to commercial real estate debt.
