"How JSI Generates Income JSI generates income through securitized debt markets that most retail investors never access directly. The fund's portfolio centers on agency mortgage-backed securities from Fannie Mae ( OTCQB:FNMA) and Freddie Mac ( OTCQB:FMCC), which provide government-backed stability while delivering coupons up to 6.5%. Management supplements this core with tactical allocations to asset-backed securities, commercial mortgage debt, and collateralized loan obligations."
"JSI's monthly distributions demonstrate the stable income characteristics of securitized debt. Over the past year, payments ranged from $0.21 to $0.32 per share, with December consistently showing elevated payouts due to year-end income adjustments. The fund's heavy allocation to agency MBS provides a crucial safety cushion. These securities carry implicit government backing through Fannie Mae and Freddie Mac, virtually eliminating default risk. The primary risk is interest rate sensitivity. When rates rise, MBS prices typically decline as prepayment speeds slow and duration extends."
Janus Henderson Securitized Income ETF (JSI) yields 5.7% by investing in securitized debt, centered on agency mortgage-backed securities from Fannie Mae and Freddie Mac with coupons up to 6.5%. The fund launched in November 2023 and has grown to $1.4 billion in assets while paying consistent monthly dividends. Management adds tactical allocations to asset-backed securities, commercial mortgage debt, and collateralized loan obligations, spreading exposure across 514 positions with the top 10 holdings comprising 45%. Monthly distributions ranged $0.21–$0.32 over the past year, with December payouts elevated due to year-end adjustments. Agency MBS provide implicit government backing; interest-rate sensitivity remains the main risk mitigated by active management.
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