Janus Henderson Investors has expanded its active fixed income ETF range with the listing of the Janus Henderson US Short Duration High Yield Active Core UCITS ETF on the London Stock Exchange.
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By ETFWorld.co.uk
Ignacio De La Maza, Head of EMEA & LatAm Client Group at Janus Henderson
The new fund, trading under the ticker JSHY and with the ISIN IE0007W7MZL0, began trading on January 30, 2026.
Product Overview and Investment Objective
The ETF is an actively managed fund aiming to outperform the ICE BofA 0-5 Year BB-B US High Yield Constrained Index over the long term. Its objective is to achieve this by investing primarily in a portfolio of US dollar-denominated sub-investment grade corporate bonds.
The fund targets an attractive yield while seeking to manage risk through a short-duration approach. Its stated Total Expense Ratio (TER) is 0.49%.
Investment Strategy and Portfolio Construction
The ETF’s investment process is systematic and focuses on the higher-quality segment of the high-yield bond market. It will invest at least 80% of its net assets in USD corporate bonds meeting specific criteria:
A credit rating below Baa3 by Moody’s or an equivalent rating from Standard & Poor’s or Fitch.
An expected maturity between 1 and 5.5 years.
A minimum amount outstanding of USD 300 million.
The strategy explicitly excludes Regulation S bonds. Janus Henderson describes the approach as combining fundamental credit expertise with advanced systematic signals to exploit market inefficiencies.
Market Context for High Yield
The launch occurs as Janus Henderson’s fixed income managers publish a constructive outlook for high yield bonds in 2026, albeit with a note of caution. Portfolio managers Brent Olson and Tom Ross anticipate that modest economic growth will support corporate cash flows and help contain default rates.
A key feature of the current market is a growing divergence in credit quality. While spreads for higher-quality BB-rated bonds have tightened, spreads for the lowest-quality CCC-rated bonds widened significantly during 2025. This bifurcation underscores the value of selective, active management within the high yield universe.
The managers also note that the average coupon on newly issued US high yield bonds has fallen from 8-9% in 2023 to approximately 7.2% by late 2025, easing refinancing pressure for many corporations. The current yield on US high yield bonds averages 6.7%.
Janus Henderson’s Active Fixed Income ETF Platform
JSHY joins a growing and successful suite of active fixed income ETFs from Janus Henderson. The firm has established itself as a major player in this space. As of late 2025, it reported over $40 billion in ETF assets under management and is the third-largest active fixed income ETF provider globally by AUM.
The firm has demonstrated an ability to scale its active ETF strategies. In August 2025, it announced that its Janus Henderson Securitized Income ETF (JSI) surpassed $1 billion in assets in less than two years. This brought the total number of Janus Henderson active fixed income ETFs with over $1 billion in AUM to five, a group that includes the Janus Henderson Mortgage-Backed Securities ETF (JMBS) at over $6 billion.
Strategic Fit and Investor Appeal
JSHY is positioned within Janus Henderson’s “Active Core” fixed income ETF category. It fills a specific niche for investors seeking the income potential of high yield bonds but with a managed sensitivity to interest rate changes through its short-duration mandate.
The fund is designed to appeal to investors who want exposure to corporate credit but are wary of the dual risks associated with traditional high yield strategies: heightened sensitivity to rising interest rates (duration risk) and exposure to the weakest, most volatile issuers (credit risk).
Key Considerations and Risks
As with all high yield bond investments, JSHY carries significant risk. The fund’s prospectus and related materials detail these, which primarily include:
Credit and Default Risk: Sub-investment grade bonds carry a higher risk of issuer default or credit rating downgrade.
Interest Rate Risk: While reduced by its short-duration focus, the fund’s value will still fluctuate with changes in interest rates.
Liquidity Risk: High yield bonds can be less liquid than investment-grade bonds, potentially affecting pricing.
The active management team’s ability to navigate the selective credit environment—particularly the widening gap between higher and lower-quality issuers—will be critical to the fund’s performance.
| Product Name | Janus Henderson US Short Duration High Yield Active Core UCITS ETF |
| ISIN | IE0007W7MZL0 |
| SEDOL | BP92JG0 |
| Currency | USD |
| TER | 0.49% |
Source : ETFWorld.co.uk
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