Understanding the Janus Henderson Asset-Backed Securities ETF (JABS)

What this ETF is trying to do

The Janus Henderson Asset-Backed Securities ETF, known by its ticker symbol JABS, is an exchange-traded fund (ETF) traded on the NYSE. While specific holdings are not listed in this report, the name suggests it focuses on asset-backed securities.

What the numbers show

When looking at an ETF, it is important to understand the difference between "price return" and "total return."

• Price Return: This only tracks how much the share price itself has changed.

• Total Return: This includes both the change in share price and the money paid out through distributions.

For JABS, the numbers show a difference between these two:

• Year-to-Date (YTD): The price return is approximately -1.74%, meaning the share price has dropped slightly this year. However, the YTD total return is approximately 1.76%.

• One Year: The one-year price return is approximately -1.65%, while the one-year total return is approximately 3.20%.

To visualize the price change, we can look at an estimated price from roughly one year ago, which was about $50.17. The current price is $49.35.

Income and distribution explanation

Some investors look for ETFs that pay out regular cash, known as distributions. JABS has a distribution yield of approximately 4.89%. This means the amount paid out in cash is about 4.89% of the current share price.

The ETF usually pays out monthly, with 12 distributions recorded over the last year. It is important to remember that a high distribution yield does not mean you have earned that same amount in total return. You must always look at the total return to see how the investment performed overall.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in an ETF decreases over time. Investors often care about this because they want to make sure their original investment stays stable while they collect income.

StockValueFinder uses an "erosion-risk score" to measure this risk. JABS has an erosion score of 94, which is labeled as "Stable / sideways." The erosion severity is rated as "good," and there is no severe erosion-risk flag for this ETF.

Pros

• Positive Total Return: Even though the share price has seen small declines, the total return (which includes distributions) has been positive for both the year-to-date and one-year periods.

• Regular Income: The ETF provides a distribution yield of approximately 4.89% with a monthly frequency.

Cons

• Price Decline: The share price has experienced slight declines in both the year-to-date and one-year measurements.

Beginner takeaway

When evaluating JABS, it is helpful to see that the share price and the total return are moving in different directions. While the price of a single share has gone down slightly, the total return is positive because the cash distributions help offset those price drops. Always remember to check both the price movement and the total return to get the full picture.