What is the liquidity profile of JSI now that it has crossed $1âŻbillion AUM â bidâask spreads, market depth?
Answer
The press release you quoted tells us that the JanusâŻHendersonâŻSecuritizedâŻIncomeâŻETF (ticker JSI) has reached $1âŻbillion in assets under management (AUM) in less than two years since its launch in NovemberâŻ2023.âŻThat milestone is a strong indicator that the fund has attracted a sizable amount of capital and, in practice, it usually translates into a more robust liquidity profile for an ETF.
However, the release does not provide any quantitative details on the ETFâs dayâtoâday trading characteristicsâsuch as bidâask spreads, average daily volume, or orderâbook depth. Those metrics are typically disclosed in:
- ETF fact sheets (often posted on JanusâŻHendersonâs website) that list average daily trading volume and average bidâask spread.
- Regulatory filings (e.g., the SEC Form NâQ or NâCSR) that include âliquidityâ tables for the fundâs holdings.
- Realâtime market data from exchanges or data providers (Bloomberg, Refinitiv, Morningstar, etc.) that show the current spread and depth of the order book for JSI.
Because the news article does not contain those figures, we can only outline what you can expect generally for an ETF that has just crossed the $1âŻbillion AUM threshold, and then point you to the sources where the exact numbers can be obtained.
1. What the $1âŻbillion AUM milestone usually means for ETF liquidity
Liquidity Dimension | Typical behavior for a ~$1âŻB ETF |
---|---|
BidâAsk Spread | ⢠Primaryâmarket creation/redemption: With $1âŻB AUM, the ETFâs authorized participants (APs) can create or redeem shares in blocks of 25âŻkâ50âŻk shares (or larger) without materially moving the market price. ⢠Secondaryâmarket trading: Most ETFs of this size trade with tight spreadsâoften 0.5âŻ% to 1âŻ% of NAV (i.e., a few basis points). In liquid U.S. equityâstyle ETFs, spreads can be as low as 0.1âŻ%; for a securitizedâincome strategy that may be slightly less liquid, a spread of 0.5âŻ%â1âŻ% is common. |
Market Depth (orderâbook size) | ⢠Depth on the exchange: Youâll typically see multiple price levels (5â10 tiers) on both the bid and ask side for a $1âŻB ETF, with each tier representing a few thousand shares. ⢠Average daily volume (ADV): ETFs that have just crossed $1âŻB AUM often post ADV in the range of 30âŻkâ80âŻk shares (ââŻ$300âŻkâ$800âŻk of turnover). The exact number depends on the underlying marketâs activity and the fundâs turnover rate. |
Creation/Redemption Activity | ⢠Primaryâmarket activity: APs can create or redeem large blocks (e.g., 25âŻkâ100âŻk shares) relatively frequently, which helps keep the secondaryâmarket spread narrow. ⢠Secondaryâmarket liquidity: Because the ETF is now sizable, market makers (e.g., Citadel, Jane Street) are more likely to post competitive quotes, further compressing spreads. |
Impact of Underlying Securities | ⢠The ETF invests in âU.S. securitized marketsâ (e.g., mortgageâbacked securities, assetâbacked securities, etc.). Those underlying assets can be less liquid than largeâcap equities, so the ETFâs spread may be a bit wider than a pureâequity ETF of the same size. ⢠Nonetheless, the ETFâs liquidityâenhancing mechanisms (inâkind creation/redemption, collateralized securities lending, and the presence of multiple market makers) mitigate the impact. |
Bottom line: While we canât quote the exact spread or depth for JSI from the press release, crossing the $1âŻB AUM mark generally puts the ETF in a regime where bidâask spreads are modest (often subâ1âŻ% of NAV) and orderâbook depth is sufficient for most institutional and retail investors to trade without significant price impact.
2. How to obtain the precise, upâtoâdate liquidity metrics for JSI
Source | What youâll find | How to access |
---|---|---|
JanusâŻHenderson ETF Fact Sheet | ⢠Average daily volume (ADV) ⢠Average bidâask spread (in bps or % of NAV) ⢠Primaryâmarket creation/redemption size |
⢠Visit JanusâŻHendersonâs website â âETFsâ â JSI â âResources/Fact Sheet.â |
SEC Filings (Form NâQ / NâCSR) | ⢠Detailed âLiquidityâ tables for the fundâs holdings ⢠Information on creation/redemption activity |
⢠SECâs EDGAR database: search for âJanus Henderson Securitized Income ETFâ and filter by âNâQâ or âNâCSR.â |
Bloomberg / Refinitiv Terminal | ⢠Realâtime bidâask spread, market depth, orderâbook depth, and tradeâsize statistics ⢠Historical spread trends |
⢠Use the ticker âJSI US |
Morningstar / ETF.com | ⢠Summary of liquidity metrics (e.g., average spread, trading volume, marketâmaker count) ⢠Analyst commentary on liquidity |
⢠Search for âJSIâ on Morningstar.com or ETF.com; look under the âLiquidityâ or âTradingâ tab. |
Exchangeâprovided data (NYSE/ARCA) | ⢠Depthâofâmarket snapshots, number of marketâmaker participants, and daily volume | ⢠NYSEâs âMarket Dataâ portal or ARCAâs âETF Statisticsâ page. |
If you need a quick snapshot today, the fastest route is to pull the ETFâs fact sheet from JanusâŻHendersonâs websiteâmost fund families update the fact sheet weekly and include the latest average bidâask spread and ADV. For granular, intraday depth (e.g., how many shares sit at each price level), youâll need a marketâdata terminal (Bloomberg, Refinitiv) or a brokerage platform that offers Levelâ2 quotes for ETFs.
3. Practical implications for investors
Scenario | What the liquidity profile means for you |
---|---|
Retail investor placing a modest order (e.g., 500â1,000 shares) | ⢠The order will be filled at the prevailing market price with minimal slippage; the spread is likely only a few cents per share. |
Institutional investor looking to trade 10âŻkâ50âŻk shares | ⢠The ETFâs primaryâmarket creation/redemption process can be used to avoid crossing the spread entirelyâAPs can create or redeem large blocks inâkind. ⢠If trading on the secondary market, the orderâbook depth (multiple price levels) should still accommodate a 10âŻkâ50âŻk share trade with limited market impact. |
Highâfrequency or algorithmic trader | ⢠The presence of multiple market makers and a tight spread makes JSI a viable candidate for spreadâcapture strategies, but be aware that the underlying securitized assets can have intraday price volatility that may affect execution quality. |
Longâterm holder (buyâandâhold) | ⢠Even if the spread widens temporarily (e.g., during market stress), the creation/redemption mechanism ensures that the ETFâs price stays close to its net asset value (NAV) over the longer term. |
4. Summary
- The press release confirms that JSI now has $1âŻbillion AUM, a size that typically brings enhanced secondaryâmarket liquidity (tighter bidâask spreads, deeper order books) and more frequent primaryâmarket creation/redemption activity.
- Exact spread and depth figures are not disclosed in the news article. To obtain them, consult the ETFâs fact sheet, SEC filings, or realâtime market data platforms (Bloomberg, Refinitiv, Morningstar, ETF.com, NYSE/ARCA).
- Based on industry norms for a $1âŻB ETF focused on securitized U.S. markets, you can expect:
- Bidâask spreads in the 0.5âŻ%â1âŻ% of NAV range (a few basis points).
- Orderâbook depth with multiple price levels on both sides, supporting trades of several thousand shares without materially moving the price.
- Average daily volume likely in the 30âŻkâ80âŻk share range, though the precise number should be verified from the latest fact sheet or market data.
If you need the current, precise numbers (e.g., âthe spread today is 2âŻbps, with 5âŻk shares on the bid side at the best priceâ), the quickest step is to download the latest JSI fact sheet from JanusâŻHendersonâs website or pull the data from a Bloomberg terminal using the ETFâs ticker. Those sources will give you the exact, upâtoâdate liquidity profile youâre looking for.