JAAGX
Janus Henderson VIT Enterprise-Inst
Strategic Focus on Mid-Cap Growth
The Janus Henderson VIT Enterprise-Inst (JAAGX) is strategically positioned within the MidCap Growth category, aiming to achieve long-term capital appreciation by investing primarily in mid-sized companies. The fund’s investment strategy is centered around a bottom-up approach, allowing the portfolio manager to meticulously select stocks based on individual company merits rather than broader market trends. This approach is particularly beneficial for investors seeking exposure to mid-cap stocks, which often offer a balance between the growth potential of small caps and the stability of large caps. With a focus on companies within the capitalization range of the Russell Midcap Growth Index, JAAGX provides investors with a targeted opportunity to capitalize on the growth potential of mid-sized enterprises.
At A Glance
Executive Summary
JAAGX offers mid-cap growth with a 0.72% expense ratio, focusing on equity securities. It provides a unique bottom-up investment approach.
Focus on mid-sized companies with growth potential. Bottom-up investment strategy for selective stock picking. Competitive annualized returns over the long term.
Higher risk metrics compared to benchmark. Negative alpha indicating underperformance. Limited bond and cash allocation for stability.
Performance Metrics and Historical Returns
JAAGX has demonstrated a robust performance trajectory, particularly over the past year, with a notable 35.29% return. This performance is competitive within its category, especially when compared to its benchmark, the S&P 500 Total Return Index, which posted a 37.62% return over the same period. The fund’s annualized returns since inception stand at 11.43%, with a ten-year return of 13.12%, showcasing its ability to deliver consistent growth over the long term. Despite a slightly negative alpha of -2.38%, indicating some underperformance relative to its benchmark, the fund’s overall returns remain attractive for growth-focused investors. The fund’s beta of 0.92 suggests a lower volatility compared to the market, which may appeal to investors seeking growth with a moderated risk profile.
Sector Allocation and Portfolio Composition
JAAGX’s portfolio is heavily weighted towards the technology sector, which constitutes 37.20% of its holdings. This significant allocation reflects the fund’s strategy to capitalize on the growth potential within the tech industry. Other notable sectors include industrials (18.76%) and healthcare (18.00%), providing a diversified exposure to industries with strong growth prospects. The fund’s top holdings, such as Constellation Software Inc and GoDaddy Inc, further emphasize its focus on innovative and high-growth companies. This sector allocation strategy is designed to leverage the dynamic growth opportunities in these industries, aligning with the fund’s objective of long-term capital appreciation.
Risk and Volatility Considerations
Investors should be aware of the risk metrics associated with JAAGX, which include a standard deviation of 3.79% and a downside risk of 2.09%. These figures suggest a moderate level of volatility, which is typical for a growth-oriented fund. The fund’s Sharpe ratio of -0.18 and Treynor ratio of -2.59 indicate that the returns have not fully compensated for the risks taken, a factor that potential investors should consider. Additionally, the fund’s correlation with its benchmark is 86.12%, suggesting that while it follows market trends, there is room for independent performance. The max drawdown of -6.0% highlights the potential for significant short-term losses, although the fund has shown resilience with a recovery length of just three months.
Competitive Expense Ratio and Yield
JAAGX offers a competitive expense ratio of 0.72%, which is relatively low for a fund within the MidCap Growth category. This cost efficiency can enhance net returns for investors over time, making it an attractive option for those seeking to minimize investment expenses. Additionally, the fund provides a yield of 0.72%, offering a modest income component alongside its growth potential. This combination of low expenses and yield can be particularly appealing to cost-conscious investors who are looking to maximize their returns while maintaining some level of income generation.
Comparison with Similar Funds
When compared to similar funds such as MFS MidCap Growth-I (OTCIX) and Franklin Small/MidCap Growth-A (FRSGX), JAAGX holds its ground with a strong one-year return of 35.29%. While its expense ratio of 0.72% is slightly higher than some peers, the fund’s unique bottom-up investment strategy and sector allocations provide a distinct advantage. For instance, its focus on technology and healthcare sectors differentiates it from competitors, potentially offering superior growth opportunities. Investors considering JAAGX should weigh these factors against the slightly higher risk metrics and negative alpha, which may impact performance relative to peers.
Investor Suitability and Strategic Fit
JAAGX is well-suited for investors with a growth-oriented investment strategy, particularly those interested in mid-cap stocks. Its focus on mid-sized companies with strong growth potential makes it an ideal choice for investors looking to diversify their portfolios with dynamic and innovative enterprises. The fund’s bottom-up approach allows for selective stock picking, which can be advantageous in volatile markets. However, investors should be comfortable with the associated risks, including potential underperformance relative to the benchmark and moderate volatility. Overall, JAAGX offers a compelling option for those seeking to enhance their portfolio’s growth potential through strategic mid-cap investments.
Conclusion: A Compelling Growth Opportunity
In conclusion, the Janus Henderson VIT Enterprise-Inst (JAAGX) stands out as a compelling option for growth-focused investors seeking exposure to mid-cap stocks. Its strategic sector allocations, competitive expense ratio, and robust historical performance make it an attractive choice for those looking to capitalize on the growth potential of mid-sized companies. While the fund does present certain risks, such as a negative alpha and moderate volatility, its unique bottom-up investment approach and focus on high-growth sectors provide a strong foundation for long-term capital appreciation. Investors who are comfortable with these risks and are seeking a dynamic growth opportunity should consider JAAGX as a valuable addition to their investment portfolio.
Similar Securities
PRDMX: TRPrice Diversified MidCap Growth-Inv | High-Return MidCap Growth Fund
PRDMX offers a 44.07% 1-year return with a focus on mid-cap growth, outperforming its benchmark with a 0.86% expense ratio.
CMGIX: BlackRock MidCap Growth Equity-Inst | Mid-Cap Growth Potential
CMGIX offers exposure to mid-cap growth stocks with a focus on high earnings potential, featuring a competitive expense ratio of 0.8%.
LBFIX: ClearBridge Select-I | High-Growth MidCap Equity Fund
LBFIX stands out with a 40.59% 1-year return and a tech-heavy portfolio, offering high growth potential for midcap investors.
LBGAX: ClearBridge MidCap Growth-A | MidCap Growth Investment
LBGAX offers a robust 39.67% 1-year return with a focus on mid-cap equities, outperforming its benchmark with a 2.00% alpha.
PMVAX: Putnam Sustainable Future-A | Sustainable MidCap Growth Fund
PMVAX offers sustainable growth with a focus on US midcap stocks, featuring a diverse sector allocation and competitive returns.
Futher Reading
https://finance.yahoo.com/quote/JAAGX/”>Yahoo: Janus Henderson VIT Enterprise-Inst
https://ftcloud.fasttrack.net/web/chart/JAAGX
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